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Funimation to Distribute Tokyopop Titles

FORT WORTH, Texas, May 22-- FUNimation Entertainment, a wholly-owned subsidiary of Navarre Corporation (Nasdaq: NAVR), today announced that it has acquired exclusive North American distribution rights for select titles in TOKYOPOP's home video catalogue.

"TOKYOPOP is one of the leading experts on youth entertainment in the United States. We are excited to apply our sales and distribution expertise to expand awareness of their titles and increase the sales of their DVDs throughout the market," said Gen Fukunaga, president and CEO of FUNimation Entertainment.

"FUNimation, an established leader in anime DVD distribution, has a feverishly-dedicated following of fans which happen to be the same audience that buys our manga," said John Parker, President and COO, TOKYOPOP. "A partnership with FUNimation presents a unique synergistic opportunity between two leading teen entertainment companies and we look forward to working with them to bring really compelling home entertainment to North America."

Titles licensed to FUNimation include Great Teacher Onizuka (GTO), Marmalade Boy, Initial D and others. FUNimation plans to rework these titles with new packaging, new pricing and new configurations. The first product to release from this agreement is Street Fury Remixed, which will street on June 27 at retailers nationwide.

About Navarre Corporation
Navarre Corporation (Nasdaq: NAVR) is a publisher and distributor of a broad range of home entertainment and multimedia products, including PC software, CD audio, DVD and VHS video, video games and accessories. Since its founding in 1983, the company has established distribution relationships with customers across a wide spectrum of retail channels which includes mass merchants, discount, wholesale club, office and music superstores, military and e-tailers nationwide. The company currently provides its products to over 18,000 retail and distribution center locations throughout the United States and Canada. Navarre has recently expanded its business to include the licensing and publishing of home entertainment and multimedia content, primarily through the acquisitions of Encore Software, Inc., BCI Eclipse Company, LLC, FUNimation Productions, LTD. and The FUNimation Store, Ltd. For more information, please visit the company's web site at http://www.navarre.com .

About FUNimation Entertainment
FUNimation(R) Entertainment, a wholly-owned subsidiary of Navarre Corporation (Nasdaq: NAVR), is a brand management company and one of the nation's leading independent home video entertainment companies. The company's most recent initiative is the FUNimation Channel(SM), a new, 24-hour digital network featuring programming from the top anime brands in the United States. FUNimation has a proven formula for launching and advancing brands, and manages a full spectrum of rights for most of its brands including broadcasting, licensing, production, internet, and home video sales and distribution. For images, or more information on FUNimation Entertainment, the FUNimation Channel, or any of FUNimation's properties, contact Jeff Dronen at 817-788-0627, ext. 251 or jeff.dronen@funimation.com .

About TOKYOPOP
TOKYOPOP(R) is hailed as a leading youth-oriented entertainment brand and an innovator of manga creation, with a revolutionary artistic vision that transcends countless platforms. From the introduction of the first-ever extensive manga publishing program in North America, to the development of its manga-originated intellectual properties into film, television and digital entertainment, TOKYOPOP has changed the way teens experience pop culture. The company's global reach has expanded to Europe and Asia, with recent offices opening in the UK and Germany and upcoming partnerships in Australia and China, in addition to its original Los Angeles and Tokyo operations. With millions of fans logging onto http://www.TOKYOPOP.com , reading its books, and watching its DVDs and television programs, TOKYOPOP's award-winning catalogue of licensed and original properties has made the company a visionary in an ever-growing teen entertainment marketplace. Visit http://www.TOKYOPOP.com for additional information.

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