Press Release July 25, 2007

Hot Hip-Hop Shows and Urban Videos from FuTurXTV Will Be Available for Free Live Streaming or Purchase/Download on HandHeld Entertainment’s Network of Web Sites

Content agreement with FuTurXTV makes the hottest urban/Hip-Hop programs, including “Hip-Hop Hollywood” and “Parking Lot Pimping,” available for ad-supported, live streaming and/or purchase to own on HandHeld’s Web properties

SAN FRANCISCO and LANCASTER, Calif. – July 25, 2007 – HandHeld Entertainment™ (NASDAQ: ZVUE), a global digital entertainment company, today announced an agreement with The FuTurX, LLC that will allow HandHeld to deliver episodes of 10 FuTurXTV urban/Hip-Hop entertainment, lifestyle, technology, reality, comedy and talk show programs through HandHeld’s ZVUE Entertainment Network™ of Web properties.

HandHeld’s Web sites (Putfile.com™, Holylemon.com™, UnOriginal.co.uk™, YourDailyMedia.com™, Dorks.com™, FunMansion.com™ and ZVUE.com™), which are expected to distribute nearly one billion page views in 2007, will deliver the FuTurXTV-branded Web episodes and programs for free, ad-supported online viewing as streaming video or for purchase to download for playback on personal computers. The FuTurXTV content will also be available for purchase and playback on HandHeld Entertainment’s ZVUE™ MP3 Video Players and all other supported personal media players (PMPs) that use Windows Media Player with DRM (digital rights management).

“Our relationship with FuTurXTV deepens our overall content offering to include the best in urban culture programming alongside our user-generated comedy, music videos, anime, entertainment news and other great content,” said Jeff Oscodar, president and CEO of HandHeld Entertainment. “We believe that our current users will enjoy the new programming and are confident the media content from FuTurXTV will entertain our existing visitors as well as draw new visitors to the HandHeld network of Web properties.”

FuTurXTV Hip-Hop and urban programming available soon for live streaming and download from HandHeld include

• Being DJ Sassy P: A 24/7 reality show about the life of DJ Sassy P, the world’s top female Hip-Hop and R&B deejay (www.djsassy.com).
• Beer & Bongs: A late-night uncensored adult talk show hosted by Thenkman, president of DefPro Entertainment, one of Germany’s leading Hip-Hop and R&B promoters, artist management and production companies. Thenkman also runs the Propz City Hop-Hop community magazine.
• Club 2 Go: An urban lifestyle show that spotlights night clubs, VIP industry parties and Red Carpet events.
• Freestyle & Fury: Raw, real and uncensored rappers talking about various hot topics and doing impromptu freestyles, performances and promotional drops for their CD, DVD and film projects.
• Hip-Hop Everywhere: A global talk show hosted by Money Train in which he interviews foreign Hip-Hop stars and U.S. stars overseas, as well as showcases new global DJs, music producers and filmmakers.
• Hip-Hop Hollywood: A reality show where host Money Train attends film premieres, music video shoots, film festivals, TV show tapings, press events, independent film locations and entertainment trade shows.
• Parking Lot Pimping: An urban car and lifestyle show hosted by Money Train, Brent Armstrong and Auggie Cavanagh.
• Shoulda Been There: An urban travel show where host Money Train covers underground, unusual and unique performances, sporting events, fairs, parties, promotional events and large outdoor music festivals.
• Science N’ Da Hood: An urban technology reality show hosted by Brent Armstrong in which he reviews and tests the latest high-tech products.
• Soulvision: An urban comedy show featuring unscripted urban comedians and personalities examining and debating the most topical, controversial and “taboo” issues in the global urban/Hip-Hop community.

“FuTurXTV is constantly seeking out opportunities to get our global urban/Hip-Hop entertainment programs in front of as many viewers as possible,” said David L. “Money Train” Watts, CEO of FuTurXTV. “Since HandHeld’s network of Web sites reaches millions of users every month, we could not pass up the opportunity to provide our shows for such a huge audience to watch on their PCs or to take with them wherever they might go.”

Since mid-November 2006, HandHeld Entertainment has acquired six Web sites that specialize in user-generated content: Dorks.com, FunMansion.com, YourDailyMedia.com Putfile.com, UnOriginal.co.uk and Holylemon.com. In addition, ZVUE.com (the company’s Web store) currently houses thousands of premium video and audio selections, selections that are available for preview, purchase, download and playback on personal computers or personal media players (PMPs).

Taken in concert, HandHeld’s ZVUE Entertainment Network of Web sites offers premium music videos, anime features, television shows, movies, cartoons, independent films, documentaries, and news, entertainment and sports programs from companies such as Sony BMG, Showtime, IMG Media, Canadian Broadcast Corp. and National Lampoon, as well as free user-generated and user-submitted video selections and other forms of media. Customers can also select from millions of songs that can be played on a PMP through HandHeld Entertainment’s relationships with eMusic and Rhapsody (see http://www.zvue.com/html/music.php).

About The FuTurX, LLC

The FuTurX, LLC is a multimedia production company. One of its latest projects called Hip-Hop Life is distributed by Screen Media in major retail stores nationwide and on pay-per-view by Universal Studios. Hip-Hop Life is a high quality HD Hip-Hop concert featuring Young Jeezy, Rick Ross and some of the hottest and talented newcomers in rap from Houston and Detroit. The Hip-Hop Life DVD also has a major MC Battle between Houston and Detroit. The FuTurX, LLC also produced the theatrical documentary called “The Good, The Bad And The Bling,” which explores the current volatile state of Hip-Hop as a culture and a social movement. The goal of The FuTurX, LLC’s new broadband channel, FuTurXTV, is to be a leading producer, aggregator and distributor of original and innovative global urban/Hip-Hop global digital content. FuTurXTV’s production partners are David Velo Stewart’s Velocity Productions and Hiphopbattle.com and Augustine L. Cavanagh’s Leaky Garage Productions.

About HandHeld Entertainment, Inc.

HandHeld Entertainment (NASDAQ: ZVUE) is a global digital entertainment company. Its ZVUE Entertainment Network of Web sites (Putfile.com, Holylemon.com, UnOriginal.co.uk, YourDailyMedia.com, Dorks.com, FunMansion.com and ZVUE.com) now houses more than 850,000 user-generated and premium videos available for purchase or free viewing, as well as millions of free user-submitted photos and other media, and is expected to deliver nearly one billion page views/video streams in 2007. Its ZVUE personal media players are mass-market priced and currently available for purchase online and in more than 2,200 Wal-Mart stores throughout the U.S. For more information, visit www.hheld.com.

“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those projected in the forward-looking statements as a result of various factors including the ability of the company to successfully commercialize its new technologies as well as risk factors set forth from time to time in HandHeld Entertainment’s filings with the United States Securities and Exchange Commission, including Annual Reports on Form 10-KSB, Quarterly Reports on Form 10-QSB and Current Reports on Form 8-K and other reports filed by the company with the SEC. The company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. As a result, investors should not place undue reliance on these forward-looking statements.

MEDIA CONTACTS AT POLITIS COMMUNICATIONS FOR HANDHELD ENTERTAINMENT:

David Politis, Politis Communications, 801-523-3730 (wk), 801-556-8184 (cell), dpolitis@politis.com or
Jonathan Bacon, Politis Communications, 801-523-3730 (wk), 801-660-7820 (cell), 801-523-3750 (fax), jbacon@politis.com.

INVESTOR CONTACT AT THE BLUESHIRT GROUP FOR HANDHELD ENTERTAINMENT:

Scott Wilson, The Blueshirt Group, 415-489-2188, scott@blueshirtgroup.com

HandHeld Entertainment, Putfile.com, YourDailyMedia.com, FunMansion.com, Dorks.com, UnOriginal.co.uk, Holylemon.com, ZVUE.com and ZVUE are trademarks of HandHeld Entertainment. All other trademarks are property of their respective owners.