"Sing Karaoke with Us," HandHeld Entertainment CEO Says As More Than 1,150 Karaoke Videos and More Than 7,500 Karaoke Songs Are Now Live at ZVUE.com.

Agreement between HandHeld Entertainment and Sound Choice allows ZVUE owners and users of other brands of portable video players to chose from 1,150 karaoke videos and more than 7,500 karaoke audio selections at ZVUE.com today, with still more karaoke videos and songs being added

SAN FRANCISCO & CHARLOTTE, N.C. -- HandHeld Entertainment[TM] (Nasdaq:ZVUE)(Nasdaq:ZVUEW) and Sound Choice today announced they have teamed up to provide thousands of karaoke videos and karaoke songs at ZVUE.com[TM].

As a result of the agreement, more than 1,150 digital karaoke videos are now available at ZVUE.com. Sound Choice's karaoke videos are professional recreations of songs from a wide variety of recording artists, including "I Can Love You Better" in the style of the Dixie Chicks to "Feel Like Makin' Love" in the style of classic rock band Bad Company. Additional karaoke video titles now available at ZVUE.com come in the style of Limp Bizkit, George Michael and Shania Twain to legendary Grammy award-winning recording artists such as Frank Sinatra and Elvis Presley. These digital karaoke videos can be played on HandHeld Entertainment's ZVUE[TM] portable video player or on any other PVP that supports Windows Media 10 with Digital Rights Management (DRM).

"Our deal with Sound Choice is consistent with our strategy of providing great digital entertainment to all handheld devices, including our own ZVUE player, as well as all other portable video players supporting Windows Media Player 10," said Jeff Oscodar, president and chief executive officer of HandHeld Entertainment. "While certain companies lock you in to their own video download stores, we do not. So if you own a LYRA, a Gigabeat, an Archos or any one of the dozens of 'open' PVPs on the market, we invite you to visit ZVUE.com. If your device supports Window Media 10 with DRM, come to ZVUE.com and try us out. I'm confident that as you do, you'll come back again and again."

HandHeld Entertainment has made a conscious decision to enable ZVUE.com content to play on any portable media player that supports Windows Media 10 with DRM, including such devices as the

* Toshiba Gigabeat,

* Thomson LYRA X3030 by RCA,

* Sony PSP,

* Creative Zen, and

* the Archos 604, among others.

"Everybody loves to sing along to their favorite music, and karaoke is immensely popular across the world," said Derek Slep, president of Sound Choice. "Our new partnership with HandHeld Entertainment allows us to reach a whole new audience of people through ZVUE.com - music fans who love to sing along with their favorite tunes, something they can now do with a ZVUE or other brand of portable media player."

ZVUE.com users can also choose from more than 7,500 karaoke songs now available at ZVUE.com, including tracks recorded in the style of U2, Van Morrison, Tina Turner, INXS, Justin Timberlake, The Jackson Five and many more. In addition to playing these audio karaoke tracks on PVPs with Windows Media 10 with DRM, such tracks can also be downloaded onto the new ZVUE MP3 Player, available now in selected Wal-Mart stores and selected InMotion Entertainment stores throughout the United States.

"Karaoke on a handheld player is the perfect solution for people like me, who have been banned from most karaoke venues due to chronically bad singing," Oscodar said with a smile. "Now anyone, including myself, can belt out our favorite tunes with the backup vocals coming through the earphones of our handheld device. With more than 8,500 karaoke selections now available at ZVUE.com and more coming down the pipe, HandHeld Entertainment is the perfect place to visit for karaoke lovers who own a portable media player or who want to download karaoke selections to their personal computer."

HandHeld Entertainment has more than 5,500 videos available for purchase or download today on ZVUE.com out of more than 12,000 video selections it has under contract. These selections include music videos, anime features, television shows, movies, cartoons, independent films, documentaries, news, entertainment and sports programs from companies ranging from Sony BMG to IMG Media and from Canadian Broadcast Corp. to Fun Little Movies.

About HandHeld Entertainment, Inc.

HandHeld Entertainment is a digital-media-to-go company with a family of mass-market portable media players priced at mass-market prices as well as its own online video content store. Its ZVUE portable media players are available for purchase online and in retail locations across the U.S., while portable video lovers can visit HandHeld Entertainment's video content store at www.zvue.com to buy pay-per-download videos. Customers can also download free user-generated videos and other media from Dorks.com[TM] and FunMansion.com[TM], wholly owned subsidiaries of HandHeld Entertainment. HandHeld Entertainment's common stock and warrants are traded on the NASDAQ Capital Market (ZVUE, ZVUEW) and Boston Stock Market (HDE, HDEW). For more information, visit www.hheld.com/ir or call 415-495-6470.

About Sound Choice

Sound Choice (www.soundchoice.com) is a leading music content provider throughout the entertainment industry. With a catalog of more than 15,000 music tracks, Sound Choice delivers quality music to the toy, movie, television, advertising and the mobile telephone industries. Sound Choice is also the leading producer and distributor for multiple lines of premium karaoke music and products, including American Idol and Nashville Star.

HandHeld Entertainment, ZVUE.com, ZVUE, Dorks.com and FunMansion.com are trademarks of HandHeld Entertainment. All other trademarks are property of their respective owners.

"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.