July 7, 2008

Navarre Corporation Announces FUNimation Entertainment’s Acquisition of Rights Formerly Held By A.D. Vision

MINNEAPOLIS, July 7 /PRNewswire-FirstCall/ -- Navarre Corporation announced today that its wholly-owned subsidiary, FUNimation Entertainment, has entered into an agreement with ARM Corporation that transfers ARM's interest in select series to FUNimation. FUNimation Entertainment will distribute and re-release these DVD titles in North America and other territories around the world beginning later this year.

Under the terms of the deal, FUNimation Entertainment obtains a variety of rights to these titles including home video, broadcast, digital and merchandise to such international successes as Devil May Cry and Guyver: The Bioboosted Armor TV. Each of these series was previously under license to A.D. Vision.

"We are very enthusiastic about these titles," said Gen Fukunaga, president and CEO of FUNimation Entertainment. "Not only are these excellent series, but they also fuel FUNimation's major initiatives in social networking, the FUNimation Channel and internet VOD. These new titles cement FUNimation as the leading anime provider in North America for television broadcast and legitimate on-line content. These shows allow us to increasingly provide the best anime to our fans on their own terms."

About FUNimation Entertainment

FUNimation(R) Entertainment is a wholly-owned subsidiary of Navarre Corporation and the leading company providing Japanese animation in the United States. FUNimation is known for acquiring top-rated anime series from Japan and for being the market share leader for home video sales of anime in the United States. The company has a proven formula for launching and advancing brands, and manages a full spectrum of rights for many of its brands including broadcasting, licensing, production, internet, and home video sales and distribution.

About Navarre Corporation

Navarre(R) Corporation is a publisher and distributor of physical and digital home entertainment and multimedia products, including PC software, DVD video, video games and accessories. Navarre develops, licenses and publishes home entertainment and multimedia content through its Encore, BCI, and FUNimation subsidiaries and has established distribution relationships with customers across a wide spectrum of retail channels. Navarre was founded in 1983 and is headquartered in New Hope, Minnesota. Additional information regarding Navarre can be found at http://www.navarre.com/.

About ARM Corporation

ARM Corporation is a wholly-owned subsidiary of Japanese Contents Investment LPC (JCI). ARM was established to support the overseas licensing and distribution of Japanese anime. JCI was formed by Sojitz Corporation, in cooperation with the Development Bank of Japan (DBJ) and KlockWorx Co., Ltd.

About Sojitz Corporation

Sojitz is engaged in the investment of content creation, with a focus on Japanese animation, and its export and sale in overseas markets. The company currently handles over 100 anime titles in more than 30 markets worldwide.

Navarre Corporation

CONTACT: Navarre Investor Relations, +1-763-535-8333, [email protected]

Web site: http://www.navarre.com/