HandHeld Entertainment's Putfile.com Named by In-Stat as the 15th Most Popular User-Generated Content Web Site in the World

HandHeld Entertainment(TM) (NASDAQ:ZVUE) a global
digital-media-to-go company, today announced that one of its Web
properties, Putfile.com(TM), has been named by In-Stat as the 15th
most popular user-generated content (UGC) Web site in the world (based
upon video downloads/page views).

Putfile's prominence is discussed in the April 2007 In-Stat report
titled "User-Generated Content - How About Just Content?". In-Stat
Analyst Michael Inouye, the report's author, also described HandHeld
as having "perhaps the most complete end-to-end experience on the
market today from one company." (See
http://www.instat.com/Abstract.asp?ID=212&SKU=IN0703415CM for more
information on this report.)

"What I like about HandHeld Entertainment is that it has taken a
rather unique approach to the user-generated content marketplace,"
Inouye said. "HandHeld has actively acquired UGC companies (in the
United Kingdom in particular) to expand its network. What is most
intriguing beyond these synergies is that HandHeld also has a video
site that primarily sells professional content. As another touch point
HandHeld sells portable media players (the ZVUE(TM)) that interface
with the site, much like the Apple iPod and Apple's media distribution
channel iTunes. As a result, HandHeld has perhaps the most complete
end-to-end experience on the market today from one company."

This marks the second analyst within the last month to applaud
HandHeld's strategy to capitalize on both its digital media business
and its consumer electronics business.

Arash Amel, senior analyst and head of Broadband Digital Media
research at Screen Digest, a market research firm based in England,
has said that "HandHeld Entertainment has put itself into a
significant and unique position in the European user-generated video
market." Additionally, Amel has stated that "the fact that HandHeld
has its own line of personal media players further sets the company
apart from the rest of the pack, and I think they have developed quite
a singular European strategy." (See
http://www.hheld.com/news/20070410a.php for complete details.)

"We're pleased that Putfile's growth and stature is being
recognized," said Jeff Oscodar, president and chief executive officer
of HandHeld Entertainment. "And Putfile.com is only one of seven Web
sites we now own that is focused on delivering great content to
consumers all over the globe that they can watch on the screen of
their choice whenever they want to watch it. That suggests that our
entire network traffic for video downloads and page views is at least
in the top 15 in the world and perhaps higher."

In addition to Putfile.com, HandHeld's network of Web properties
now include

-- Holylemon.com(TM);

-- UnOriginal.co.uk(TM);

-- YourDailyMedia.com(TM);

-- FunMansion.com(TM);

-- Dorks.com(TM); and

-- ZVUE.com(TM).

Taken collectively, HandHeld Entertainment's network of Web sites
includes more than 500,000 online videos. The premium and free content
available on these Web sites include music videos, anime features,
television shows, movies, cartoons, independent films, documentaries,
and news, entertainment and sports programs from companies ranging
from Sony BMG, Showtime and IMG Media to Canadian Broadcast Corp.,
Egami Media and Fun Little Movies, as well as free user-generated and
user-submitted video selections and other forms of media. Customers
can also select from millions of songs that can be played on a PMP
through HandHeld Entertainment's relationships with eMusic and
Rhapsody (see http://www.zvue.com/html/music.php).

"We are executing on our strategy to transform HandHeld into a
digital entertainment company which we announced in mid-November - a
company delivering a complete ecosystem of free user-generated
content, premium videos and other content, as well as one of the top
value-priced personal media players in the world," Oscodar said.
"We've made great strides since November, but we're not done, and we
expect to continue our efforts to become a significant global digital
entertainment company generating revenues from sales of devices,
advertising and promotional sales, and premium content sales."

About HandHeld Entertainment, Inc.

HandHeld Entertainment (NASDAQ:ZVUE) is a global
digital-media-to-go company. Its network of Web sites (Putfile.com,
Holylemon.com, UnOriginal.co.uk, YourDailyMedia.com, FunMansion.com,
Dorks.com and ZVUE.com) now house more than 500,000 user-generated and
premium videos in total - videos available for purchase or free
viewing. Its ZVUE personal media players are mass-market priced and
available for purchase online and currently in more than 2,200
Wal-Mart stores throughout the U.S. For more information, visit
www.hheld.com.

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