HandHeld Entertainment CEO Jeff Oscodar to Participate in a Panel Discussion on Portable Devices at the CONNECTIONS(TM) Conference May 4, 2006; Parks Associates' Portable Devices as Extensions to the Connected Home.

SAN FRANCISCO -- Panel to Examine the Technology and Business Models for Content Mobility

HandHeld Entertainment(TM) (OTCBB:HNDH), today announced that President & Chief Executive Officer Jeff Oscodar will participate in a panel discussion on May 4, 2006 during the CONNECTIONS(TM) Conference in Santa Clara, Calif. Oscodar and the other members of the panel will examine the topic of Portable Devices as Extensions to the Connected Home.

In addition to Oscodar, the panel will include representatives from Archos Technology, GlooLabs, PortalPlayer and TomTom. Parks Associates Research Analyst Harry Wang will moderate the interactive discussion, which will examine the technology and business models for content mobility, including functionality and convergence, content portability and digital rights management (DRM), and service models and growth opportunities. Panel members will also examine the relationship between device manufacturers content owners and service vendors.

Now in its tenth year, CONNECTIONS: The Digital Home Conference and Showcase, produced by Parks Associates in partnership with the Consumer Electronics Association, is the largest executive conference and showcase dedicated to advanced digital lifestyle solutions for residential and mobile environments.

About Jeff Oscodar

Jeff Oscodar has been director, president and chief executive officer of HandHeld Entertainment since November 2004. Prior to joining HandHeld Entertainment, Oscodar founded and ran Rule 168 Advisors from July 1999 to November 2004, a consulting firm focused on the commercialization of new technology. At Rule 168, he advised Raytheon on how to turn defense industry applications into valuable commercial operations. Previously, he co-founded InfoGear Technology Corporation, which produced the first Web-enabled telephone and was sold to Cisco Systems in March 2000 for $301 million. While at InfoGear, Oscodar developed content partnerships with companies such as Amazon.com, eToys, Time Inc., USA Today and Yahoo!, among others.

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 more than 1,800 retail locations across the United States, while portable video lovers can visit ZTV (HandHeld Entertainment's video content store at www.zvue.com) to buy pay-per-download videos or download thousands of free media titles. For more information, visit www.hheld.com or call 415-495-6470.

About the ZVUE

Available today in approximately 1,800 Wal-Mart stores around the United States, the $99 ZVUE plays videos and MP3 files available from the ZVUE.com download store and also lets users view digital pictures from a digital camera or home video from a camcorder. The ZVUE offers full-color video and clear audio sound that gives users a robust, on-the-go digital experience when coupled with downloadable content from the ZVUE Web site.

HandHeld Entertainment, ZTV 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 release contains forward-looking statements. To the extent that any statements made in this release contain information that is not historical, these statements are forward-looking. These statements are subject to risks and uncertainties that cannot be predicted or quantified and, consequently, actual results may differ materially from those expressed or implied by these forward-looking statements. These risks and uncertainties include, without limitation: HandHeld Entertainment's dependence on contract manufacturing of its products; its reliance on a single major mass-market retailer; its ability to develop and market successfully and in a timely manner new products and services; its ability to predict market demand for, and gain market acceptance of, its products and services; the impact of competitive products and services and of alternative technological advances; its ability to raise additional capital to finance its activities; its limited and unprofitable operating history; its ability to operate as a public company; its ability to reduce product return rates; the affect of inventory and price protections required by major retailers; the availability and affordability of digital media content; its ability to protect its proprietary information and to avoid infringement of others' proprietary rights; its ability to attract and retain qualified senior management and research and development personnel; the reliability and security of its information systems and networks; and other factors described in HandHeld Entertainment's filings with the Securities and Exchange Commission, including Current Reports on Form 10-KSB & Form 8-K. These forward-looking statements are made as of the date hereof. HandHeld Entertainment does not undertake any obligation to publicly update any forward-looking statements. As a result, investors should not place undue reliance on these forward-looking statements.