HandHeld Entertainment Announces Launch of ZVUE Networks: A Premium Online Video Advertising Network

SAN FRANCISCO--(BUSINESS WIRE)--HandHeld Entertainment, Inc. (NASDAQ: ZVUE), a leading global digital entertainment company, today announced the launch of ZVUE Networks™, a premium online video advertising network created to monetize its growing library of professional and user-generated video content.

“Formally launching ZVUE Networks is our way of telling advertisers we have a great way for them to reach their customers – particularly in the high-value 18- to 34-year-old demographic”

For advertisers, ZVUE Networks will provide extensive reach to online video through pre- and post-roll video advertisements, in-stream flash overlay advertisements, and banner and other alternative rich media advertisements. ZVUE Networks also will provide advertisers with access to specific psychographics and includes vertical categories such as music, entertainment, and video games.

With the closing of the proposed acquisition of eBaum’s World, Inc. (www.ebaumsworld.com), ZVUE Networks will become the sixth largest online video provider in the world and is expected to deliver more than 24 million daily unique visitors per month and serve nearly 3.5 billion page views and video streams annually by the end of 2007. The acquisition will further establish ZVUE Networks as one of the premier online video networks for advertisers wishing to reach the 18- to 34-year-old male demographic, typically one of the most sought after target audiences for advertisers.

“Formally launching ZVUE Networks is our way of telling advertisers we have a great way for them to reach their customers – particularly in the high-value 18- to 34-year-old demographic,” said Jeff Oscodar, president and CEO of HandHeld Entertainment. “By working with us, advertisers can target millions of individuals in exact demographic niches with one contact. And we will allow advertisers and their agencies to do that with targeted overlay, pre- and post-roll video commercials, as well as with more traditional banner ads and alternative rich media advertisements.

“Finally, ZVUE Networks is strategically positioned as one of the only online video networks to not only own all of its Websites, but which has licensed an extensive library of professionally produced premium video content. It is with this competitive advantage that ZVUE Networks aims to provide the perfect blend of both professional and user-generated content in an effort to provide advertisers with the most ideal environment for their online video initiatives.”

For more information about ZVUE Networks, interested parties can download the media kit at http://zvuenetworks.com.

About HandHeld Entertainment, Inc.

HandHeld Entertainment (NASDAQ: ZVUE) is a global digital entertainment company. Its ZVUE Networks (comprised of 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 commercial videos available for purchase or free viewing, as well as millions of free user-submitted photos and other media. After completing is acquisition of eBaum’s World in October 2007, ZVUE Networks is expected to deliver nearly 3.5 billion page views/video streams in 2007. HandHeld’s 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 http://www.hheld.com/index2.php.

HandHeld Entertainment, ZVUE Networks, Putfile.com, Holylemon.com, UnOriginal.co.uk, YourDailyMedia.com, Dorks.com, FunMansion.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.