SAN FRANCISCO and CHATSWORTH, Calif. – Oct. 31, 2006 – HandHeld EntertainmentÔ (NASDAQ: ZVUE, ZVUEU) and Egami Media, Inc. today announced an agreement that will bring more than 1,500 new video selections to ZVUE.com™, HandHeld Entertainment’s video download store.

A leading aggregator of digital media content and a subsidiary of Image Entertainment, Inc. (NASDAQ: DISK), Egami is providing ZVUE.com with concert films ranging from “KISS: Rock the Nation: Live!” and “Roy Orbison: Black & White Night,” as well as an assortment of video programs from jazz great Chick Corea and dozens of other performances and documentaries across the musical spectrum.

The ZVUE.com library will also be expanded by Egami to include Bruce Brown’s classic surf film “Endless Summer,” the MacGillivray Freeman IMAX collection, stand-up comedy performances, television programming and foreign and independent films. ZVUE.com users will also have access to restored silent and classic films, such as historically significant programs from D.W. Griffith (“Intolerance” and “Birth of a Nation”), F.W. Murnau (“Nosferatu”) and shorts from Charlie Chaplin’s Mutual years, among others.

“We’re excited to join with Egami to offer its broad range of live concert footage and music documentaries, as well as its other selections of digital entertainment media to ZVUE™ users and other portable video player owners,” said Jeff Oscodar, president and chief executive officer of HandHeld Entertainment. “We are constantly looking for ways to provide more content to our users and Egami Media has the type of blend we look for in a partnership. In total, we feel that adding the Egami library to ZVUE.com is a solid step forward for our customers everywhere. ”

“We believe that Egami Media is a perfect match for HandHeld Entertainment and ZVUE users,” said Martin W. Greenwald, president and CEO of Image Entertainment and chairman of the board of Egami Media. “ZVUE.com is a great channel for our vast media catalogue and will help us reach an even greater audience of digital content users, since this makes our videos portable. We believe portable video content is an important and natural evolution for the home entertainment industry, and we are confident this agreement is another step in Egami’s aggressive approach to the world of digital distribution.”

About HandHeld Entertainment, Inc.
With shares and units of its common stock available for purchase on the NASDAQ Capital Market (ZVUE, ZVUEU) and Boston Stock Market (HDE, HDEU), 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 retail locations across the U.S., while portable video lovers can visit HandHeld Entertainment’s video content store at www.zvue.com to buy pay-per-download videos or download thousands of free media titles.

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