HandHeld Entertainment Announces European Strategy for Online Video and Content

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) April 10, 2007 -- SAN FRANCISCO and GUILDFORD, England � April 10, 2007 � HandHeld Entertainment� (NASDAQ: ZVUE, ZVUEW) a global digital-media-to-go company, today formally unveiled its strategy for becoming one of the largest providers of online videos and other media in Europe.

�There are two aspects to our European strategy,� said Jeff Oscodar, president and chief executive officer of HandHeld Entertainment. �First, by acquiring Putfile.com�, YourDailyMedia.com� and UnOriginal.co.uk�, we immediately put our company into a leadership position to deliver online videos and digital content to our customers in both the United Kingdom and Europe. Second, because Putfile.com is structured as a utility, rather than an editorial site, it can be easily replicated into other languages. This will allow us to create local language versions of Putfile across Europe. We believe that local language implementations will accelerate our traffic acquisition throughout Europe and thereby provide an even stronger platform upon which advertisers can reach their customers.�

HandHeld Entertainment announced last month that it had acquired UnOrginal.co.uk, the third consecutive Web property HandHeld has acquired since mid-December 2006 that is based in Europe and the second site that is based in the U.K. These sites give the company significant European traffic, particularly in the U.K.

In addition, the company will use Putfile.com � an England-based Web site that has been described by Arash Amel of Screen Digest (one of the top analysts in Europe) as one of the top two providers of user-generated online video in the U.K. � as a foundation for creating content upload sites for languages other than English.

�When we announced the Putfile acquisition, we believed that Putfile.com would not only provide a large amount of traffic and a large library of videos, but that the site would become a platform for our European strategy,� Oscodar said. �We are now announcing that strategy. Our European acquisitions have positioned us to take a leadership position in the European market for online video, both because we have acquired great sites and because we can use Putfile to expand into languages other than English. We believe that there are significant growth opportunities for us in the European market, and we are putting ourselves in a position to exploit them.�

HandHeld�s Acquisitions Place Company in a Significant Position in Europe, Analyst Says

Arash Amel, senior analyst and head of Broadband Digital Media research at Screen Digest, a market research firm based in England, has commented on HandHeld Entertainment�s acquisition strategy.

�By acquiring companies like Putfile, HandHeld Entertainment has put itself into a significant and unique position in the European user-generated video market,� Amel said. �Creating localised Web sites in multiple languages is a positive step and can only help generate traffic from local users."