Warrants (Canada & USA)

[Buckey]

HandHeld Entertainment Modifies Terms of Five-year Warrants
Ticker Symbol: U:ZVUE U:ZVUEW


SAN FRANCISCO -- (Business Wire) --


HandHeld Entertainment(TM) (NASDAQ: ZVUE, ZVUEW) today announced

automatic adjustment of the exercise price of its five-year $3.50

warrants became effective. The exercise price will be adjusted to

$2.80 per share effective March 16, 2007 as a result of certain

provisions agreed to at the time of issuance of the warrants. The

exercise price of the warrants will be reduced by an additional $0.35

for every 30-day period after March 15, 2007, that the company has not

obtained effectiveness of a registration statement covering resale of

the warrant and the shares of common stock underlying the warrant.



¶ About HandHeld Entertainment, Inc.



¶ HandHeld Entertainment is a digital-media-to-go company. Its

network of Web sites (Putfile.com(TM), YourDailyMedia.com(TM),

FunMansion.com(TM), Dorks.com(TM) and ZVUE.com(TM)) attracted more

than 13.7 million visitors in January 2007 to view both user-generated

and premium content. Its ZVUE(TM) personal media players are

mass-market priced and available for purchase online and in more than

2,000 Wal-Mart stores throughout the United States. HandHeld

Entertainment's common stock and warrants are traded on the NASDAQ

Capital Market (ZVUE, ZVUEW) and Boston Stock Market (HDE, HDEW),

respectively. For more information, visit www.hheld.com/ir or call

415-495-6470.



¶ HandHeld Entertainment, Putfile.com, YourDailyMedia.com,

FunMansion.com, Dorks.com, ZVUE.com and ZVUE 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.
Contacts:

Media Contacts for HandHeld Entertainment:

Politis Communications

David Politis, 801-523-3730

Cell: 801-556-8184

[e-mail]

or

Jonathan Bacon, 801-523-3730

Cell: 801-660-7820

[e-mail]

or

Investor Contact for HandHeld Entertainment:

The Del Mar Consulting Group, Inc.

Robert Prag, 858-794-9500

[e-mail]