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Fullmetal Alchemist Video Games coming from Destineer

-- New line of video games to be based off the BEST SELLING ANIME DVD AND TOP-RATED ANIME SERIES --

Minneapolis, MN – May 03, 2006 – FUNimation Entertainment, a Navarre Corporation (NASDAQ: NAVR) company, and Destineer Publishing Corp., announced today a licensing arrangement that will bring a new line of video games to North America based on the popular anime title Fullmetal Alchemist™.

Fans have followed the journey of these young alchemists in 51 episodes, a full-length feature movie, graphic novels, action figures, character goods, apparel and a top-selling trading card game. The Fullmetal Alchemist series has become a fan favorite on Cartoon Network's Adult Swim and it is one of the best selling anime series on DVD in the United States. The series follows the adventures of Edward and Alphonse Elric. The brothers are very gifted in the art of alchemy. They quickly learn their limits when they attempt to resurrect their mother, a desperate act that costs Edward an arm and Al his entire body. Outfitted with new metal limbs, Ed and Al, who is now bound to a suit of armor, set out to find the Philosopher Stone - the only thing that can restore them.

This new series of Fullmetal Alchemist video games, which will be made available for a variety of videogame platforms to be announced later this year, will be created and released through an exclusive publishing agreement with Destineer.

Fullmetal Alchemist follows FUNimation's extraordinary success bringing the world's best anime to North America, such as Dragon Ball Z®, and Yū Yū Hakusho®” said Paul Rinde, Chief Executive Officer of Destineer. “Huge numbers of videogame players watch the Fullmetal Alchemist anime on TV every day, and now they'll get the chance to play compelling Fullmetal Alchemist videogames, as well.”

“This is a great opportunity for us and for the Fullmetal Alchemist brand,” explained Gen Fukunaga, president and CEO of FUNimation Entertainment. “Destineer brings an incredible level of industry insight and experience to the table and we look forward to the development of exciting Fullmetal Alchemist games.”

The first installments of Fullmetal Alchemist games are anticipated for release this year. Visit www.fullmetal-alchemistgame.com for more information.

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