CORRECTED: HandHeld Entertainment Revises Statement: Clarifies That Company is Not Presently in Compliance with Certain NASDAQ Rules Due to Putfile.com Acquisition.

SAN FRANCISCO -- Please replace the release dated February 16, 2007 with the following corrected version due to multiple revisions.

The corrected release reads:

CORRECTED: HANDHELD ENTERTAINMENT REVISES STATEMENT: CLARIFIES THAT COMPANY IS NOT PRESENTLY IN COMPLIANCE WITH CERTAIN NASDAQ RULES DUE TO PUTFILE.COM ACQUISITION

On February 16, 2007, HandHeld Entertainment[TM] (NASDAQ:ZVUE)(NASDAQ:ZVUEW) announced that it received a staff deficiency letter from The NASDAQ Stock Market on February 12, 2007 with regard to compliance with NASDAQ Rule 4310(c)(17). As a result of the recent Putfile.com acquisition announced February 9, 2007, NASDAQ informed the company that the issuance of shares in connection with the acquisition caused the company to be in non-compliance with the requirement that a "Notification Form: Listing of Additional Shares" with respect to 2,092,050 shares issued in connection with that acquisition be submitted, with supporting documentation. Following the Market close on Friday, February 16, 2007, it was inaccurately reported that the company had regained compliance with the NASDAQ rules and the company was orally notified by NASDAQ that a correction should be issued.

The February 12, 2007 staff deficiency letter states that HandHeld Entertainment did not timely file a required notice with The NASDAQ Stock Market and as a result was not in compliance with the rules. The company remains out of compliance. The company has undertaken to provide all notices and documentation requested by NASDAQ as soon as possible.

About HandHeld Entertainment, Inc.

HandHeld Entertainment is a digital-media-to-go company. Its network of Web sites (Putfile.com[TM], YourDailyMedia.com[TM], FunMansion.com[TM], Dorks.com[TM] and ZVUE.com[TM]) attracted more than 13.7 million visitors in January 2007 to view both user-generated and premium content. Its ZVUE[TM] personal media players are mass-market priced and available for purchase online and in approximately 2,200 Wal-Mart stores throughout the United States. HandHeld Entertainment's common stock and warrants are traded on the NASDAQ Capital Market (ZVUE, ZVUEW) and Boston Stock Market (HDE, HDEW), respectively. For more information, visit www.hheld.com/ir or call 415-495-6470.

HandHeld Entertainment, Putfile.com, YourDailyMedia.com, FunMansion.com, Dorks.com, ZVUE.com and ZVUE 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.