Independent Musicians Now ''Jam In Your Hand'' as HandHeld Entertainment Offers eMusic Downloads to New ZVUE Owners; ZVUE Users Get Access to eMusic's 1.2-Million-Track Music Catalog

Business Wire, April 12, 2006

SAN FRANCISCO -- HandHeld Entertainment(TM) (OTCBB:HNDH), the maker of the ZVUE(TM) family of mass-market portable media players, as well as its own associated online video and music content store, today announced that it has teamed with eMusic, the world's largest digital retailer of independent music, to offer free eMusic downloads to new owners of the ZVUE portable media player.

All songs in eMusic's 1.2 million-track music catalog are available to HandHeld Entertainment customers under this promotion by visiting www.emusic.com/zvue.> eMusic, second only to iTunes in number of downloads sold, offers the world's largest collection of independent music ever assembled, with more than 4,000 labels and more than one million tracks from the likes of Bjork, Johnny Cash, Ray Charles, Coldplay, Danger Doom, Miles Davis, The Donnas, Jerry Garcia, Ben Lee, My Morning Jacket, Nine Inch Nails, The Pixies, Spoon, Tom Waits, Lucinda Williams and many others.

"What do Coldplay, Johnny Cash and Ray Charles have in common with Bjork and Nine Inch Nails? They, and thousands of other leading artists like them, can all now jam in your hand if you're a ZVUE owner," said Jeff Oscodar, president and chief executive officer of HandHeld Entertainment. "Through this collaboration, new and current ZVUE owners can choose to download free tracks from more than a million MP3s at eMusic. And, as the only major digital music service to deliver music in the universally recognizable MP3 format, eMusic is fully compatible with the ZVUE."

The content arrangement with eMusic bolsters the already large selection of music and video content that can be purchased at ZTV, HandHeld Entertainment's digital content download store at www.zvue.com.

About the ZVUE

Available today in more than 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.

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.

HandHeld Entertainment, ZVUE and ZTV are trademarks of HandHeld Entertainment. eMusic is a registered trademark and eMusic.com is a trademark of eMusic.com Inc. 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 Annual Reports on Form 10-KSB, Quarterly Reports on Form 10-QSB and Current Reports on 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.