HandHeld Entertainment’s Pre-Loaded ZVUE MP3 Player Will be on Store Shelves Tuesday

SAN FRANCISCO – Dec. 4, 2006 – HandHeld Entertainment™ (NASDAQ: ZVUE, ZVUEW) today announced its ZVUE™ MP3 Player – the company’s first MP3 player – will be in selected Wal-Mart stores and selected InMotion Entertainment stores throughout the United States starting Tuesday, December 5.

At a suggested retail price of $69.95, the ZVUE MP3 player is an MP3 player with a bonus as it comes pre-loaded with 30 of the top hits of 2006, including two No. 1 singles from Beyoncé: “déjà vu” and “Check on it,” as well as eight other Top 10 songs (as tracked by Billboard magazine in its various Billboard charts). Other recording artists included on the ZVUE MP3 Player range from Nick Lachey to Jessica Simpson and from the Dixie Chicks to Five for Fighting. (A complete list is found below.)

“As promised, the ZVUE MP3 Player is going to be on retail shelves throughout the U.S. in time for the holidays,” said Jeff Oscodar, president and chief executive officer of HandHeld Entertainment. “And since it comes pre-loaded with 30 of the top hits of 2006, the ZVUE MP3 makes a great gift choice. And in addition to the player and the songs, ZVUE MP3 Player owners will also be able to purchase and download the corresponding music videos for each song from our download store at ZVUE.com™.

“The ZVUE MP3 validates the strategy that we discussed during our investor conference call last month. We are going to continue to produce high-value hardware coupled with great content from ZVUE.com that will drive customers to our digital download site. Great products, combined with content, create great value.”

The 30 hit songs that come pre-loaded on the ZVUE MP3 Player, and the corresponding recording artist(s), are
Anna Nalick "Breathe (2 a.m.)"
Audioslave "Original Fire"
Beyonce "déjà vu"
Beyonce "Check On It"
Bow Wow "Fresh AZIMIZ"
Cartel "Honestly"
Cheyenne Kimball "Hanging On"
Christina Aguilera "Aint No Other Man"
Dixie Chicks "Not Ready To Make Nice"
Five For Fighting "The Riddle"
Heather Headley "In My Mind"
Howie Day Collide
Jessica Simpson "A Public Affair"
John Legend “Ordinary People”
John Mayer "Waiting on the World to Change"
Los Lonely Boys "Diamonds"
Luther Vandross "Shine"
Matisyahu "King Without A Crown
Natasha Bedingfield "Unwritten"
Nick Lachey "What's Left of Me"
Omarion "Entourage"
Outkast "Morris Brown"
Shakira "Hips Won't Lie"
Shakira "La Tortura"
Teddy Geider "For You I Will"
The Afters "The Beautiful"
The Fray "How to Save a Life"
The Fray "Over My Head"
Three 6 Mafia "Stay Fly"
T-Pain "I'm N Luv (with a Stripper)"

ZVUE MP3 Player Specifications

The thumbdrive-sized ZVUE MP3 Player features 512 Megabytes of built-in Flash memory capable of holding approximately eight hours of recordings in MP3 format (roughly 125 songs) or approximately 16 hours of recordings in Windows Media Audio (WMA) format (roughly 250 songs). The ZVUE MP3 Player also supports WAV files. Users can add new recordings to the ZVUE MP3 Player through its direct USB port, as well as use the ZVUE MP3 Player as a voice recorder. The ZVUE MP3 Player operates for approximately eight hours on a single AAA battery.

Each product package contains the pre-loaded ZVUE MP3 Player, a Quick Start Guide, ear buds, a USB cable for transferring music and a single AAA battery.

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

MEDIA CONTACTS 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), jbacon@politis.com