Navarre Corporation Announces Contract Extension with Cleopatra Records

New Agreement Runs Through November 2010

Jul 27, 2006, 01:00 ET from Navarre Corporation

    MINNEAPOLIS, July 27 /PRNewswire-FirstCall/ -- 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 Entertainment Media Division has signed a contract extension
 with Cleopatra Records for US and Canadian distribution.
     Cleopatra Records was founded in 1992 by Brian Perera on the philosophy
 of building a record label run by music fans, for music fans. Today,
 Cleopatra Records exists at the very forefront of cutting edge music and
 media. Cleopatra boasts an impressive list of artists which includes but is
 not limited to Wanda Jackson, Layzie Bone, Johnny Thunders and The 69 Eyes.
 Cleopatra has an impressive releases schedule for calendar year 2006 from
 artists such as Layzie Bone, Wu-Tang Clan, Pastro Troy, Makaveli, Loon,
 Warrant and New Skin.
     Bob Freese, Vice President and General Manager of Navarre Entertainment
 Media, commenting on the extension with Cleopatra Records said, "Cleopatra
 Records' passion for music starts at the very top with Brian Perera. Brain
 and his team have built one of the leading independent record labels
 through an impressive list of talented artist across multiple music genres.
 Given the strong relationship we have with Cleopatra Records we are
 thrilled to have signed a contract extension with them, especially since we
 have begun to think of Brain and the crew as being part of the Navarre
 Entertainment Media family."
     Brian Perera, Chief Executive Officer of Cleopatra Records commented,
 "Working with Navarre has been, and continues to be, a wonderful
 experience. They've helped Cleopatra accomplish its goal of becoming one of
 the top independent record labels in the USA. The professionalism of their
 hard-working staff along with the friendly, family atmosphere never ceases
 to amaze me."
     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 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, BCI, and FUNimation. For more
 information, please visit the Company's web site at
     About Cleopatra Records
     Cleopatra Records exists at the very forefront of cutting edge music.
 Continually looking forward but never shying away from the past, this indie
 juggernaut's roster boast a wide array of artists such as WANDA JACKSON,
 LAYZIE BONE, JOHNNY THUNDERS and THE 69 EYES just to name a few.
 Established in 1992 by BRIAN PERERA, the philosophy at CLEOPATRA RECORDS is
 simple: A Label Run By Music Fans For Music Fans. While many other
 independents have fallen to the wayside, Cleopatra has managed to become
 one of the premiere independent record labels in the world while also
 branching out to encompass all genres of music and media.

SOURCE Navarre Corporation