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Navarre Corporation Announces Exclusive Distribution Agreement With Destineer

MINNEAPOLIS, Oct. 4 -- Navarre Corporation
(Nasdaq: NAVR), a publisher and distributor of a broad range of physical
and digital home entertainment and multimedia products, today announced
that its Navarre Distribution Services division has signed an exclusive
distribution agreement to distribute four new console games based on
FUNimation's ever popular Fullmetal Alchemist series published by Destineer
for the Nintendo DS and Sony PSP platforms.

The first of these new releases, "Fullmetal Alchemist: Dual Sympathy"
is scheduled to be in stores in October, 2006, with a retail price of

Eric Paulson, Chairman and Chief Executive Officer, Navarre, commented,
"This exclusive distribution agreement expands our close relationship with
Destineer. Their track record of developing top-tier console games coupled
with FUNimation's fast-growing Fullmetal Alchemist brand will benefit
Navarre, FUNimation and Destineer." Paulson continues, "This agreement also
demonstrates one of the strategic benefits of the FUNimation acquisition
which has provided us the leverage to license our anime content to
developers who then distribute their content through our distribution
services business unit."

About Navarre Corporation
Navarre Corporation (Nasdaq: NAVR) is a publisher and distributor of
physical and digital 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 19,000 retail and distribution center
locations throughout the United States and Canada. Navarre has expanded its
business to include the licensing and publishing of home entertainment and
multimedia content, primarily through the acquisitions of Encore Software,
BCI, and FUNimation. For more information, please visit the company's web
site at http://www.navarre.com .

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