NAVARRE’S BCI SIGNS EXCLUSIVE DISTRIBUTION AGREEMENT REGARDING ENTERTAINMENT RIGHTS’ HE-MAN AND THE MASTERS OF THE UNIVERSE TV SERIES

Minneapolis, MN. – March 7, 2005 – Navarre Corporation (NASDAQ: NAVR) a leading publisher and distributor of a broad range of home entertainment and multimedia software products, today announced that its wholly-owned subsidiary, BCI Eclipse Company, LLC (“BCI”), has acquired certain exclusive distribution rights to Entertainment Rights’ classic animation series He-Man and the Masters of the Universe and The New Adventures of He-Man.

Under the terms of this agreement, BCI will exclusively promote and distribute both classic animated series on DVD throughout the U.S. and Canada. The first release will be a “10 Best Episode” 2 DVD set from the original He-Man and the Masters of the Universe series which is scheduled to be launched at retail in July 2005 in conjunction with the 2005 San Diego Comic-Con International convention. This release will be followed later in the fall of 2005 with the first of multiple DVD box sets of the complete series in “season” format, plus comprehensive and generous special features.

BCI has retained the services of two prominent consultants, Andy Mangels and Val Staples, for the release of these series and the production of the DVD added collectible features. Entertainment writer Andy Mangels is the best-selling novelist and author of Animation on DVD – the Ultimate Guide. Val Staples, is the owner of www.he-man.org, the internet’s largest portal for the He-Man and the Masters of the Universe fan community, and owner of MVCreations graphic design company and publisher of the new Masters of the Universe comic. Both will supervise the sequencing and packaging of the original episodes, as well as the wide array of extra content and collectible inserts that will be added to the DVD releases.

He-Man and the Masters of the Universe is a landmark in children’s television history, being the first nationally syndicated television program based on a successful toy line. Originally produced from 1983-1985 by world renowned Filmation studios and syndicated until 1990, He-Man and the Masters of the Universe has experienced consistent popularity over the years, demonstrated by its two subsequent animated series which aired in 1990 – 1991 and 2002 – 2004 as well as its multi-year run as an exceptionally successful toy and merchandising line for Mattel.

Greg Glass, Sr. VP at BCI, stated, “BCI is thrilled with the opportunity to bring these classic animated series to DVD for the first time in North America. Our acquisitions team has been focused on this property for quite some time based on its 25+ year history of being one of the strongest and most collectible toy and animation properties ever produced. BCI intends to give each DVD release the historical treatment it deserves.”

Glass continued, “With He-Man and the Masters of the Universe, we build on our reputation for bringing classic and collectible programming to DVD, but we expand that focus to an even larger and more valuable licensed property. We are excited about this new added focus towards truly frontline collectible releases.”

Mike Heap, CEO, Entertainment Rights, added, “We are extremely pleased to be partnering with BCI, who are recognized for their expertise in the marketing and distribution of home entertainment properties. He-Man is the second significant agreement Entertainment Rights has concluded since acquiring the Filmation library and we look forward to a rewarding partnership with BCI on He-Man and Masters of the Universe.”

About Navarre Corporation
Navarre Corporation (NASDAQ: NAVR) provides distribution and related services to leading developers and retailers of home entertainment content. The company operates under two business segments; Distribution which includes PC software, video games, CD audio and DVD video; Publishing which includes Encore and BCI Eclipse. Based in California, Encore is a majority-owned subsidiary of Navarre Corporation (NASDAQ: NAVR), and a leading interactive publisher in the PC CD-ROM and videogame markets. As a result of strategic relationships, the company publishes PC titles or compilations in major software categories from productivity to education. BCI Eclipse, based in California, a wholly-owned subsidiary of Navarre Corporation, provides niche DVD video and audio products. Navarre’s client-specific delivery systems allow its product lines to be seamlessly distributed to over 18,000 retail locations throughout North America. The Company provides such value-added services as inventory management, Web-based ordering, fulfillment and marketing and EDI customer and vendor interface. Since its founding in 1983, Navarre has built a base of distribution partnerships with a broad base of leading retailers across the mass merchant, music, computer and office specialty, wholesale club and military PX channels, as well as software content developers from all categories of the industry and independent record labels encompassing all musical genres. For more information, please visit the Company’s Web site at www.navarre.com.