Navarre's Encore Subsidiary Signs Exclusive Licensing Agreement With The United States Playing Card Company for Hoyle Branded Properties

Navarre's Encore Subsidiary Signs Exclusive Licensing Agreement With The United States Playing Card Company for Hoyle Branded Properties

Encore to Manage Worldwide Retail and Electronic Download PC Software Publishing for Hoyle, the #1 Selling Family Entertainment Software Brand

MINNEAPOLIS, Dec. 21 /PRNewswire-FirstCall/ -- Navarre Corporation (NASDAQ:NAVR), a leading publisher and distributor of home entertainment and software products, today announced that its majority-owned subsidiary, Encore Software, Inc., has reached an exclusive licensing agreement with The United States Playing Card Company, Inc., a subsidiary of Jarden Corporation (NYSE:JAH) and the leader in the production and distribution of premier playing card brands. This exclusive arrangement provides Encore with the worldwide publishing rights to the Hoyle brand for PC within the majority of the retail and electronic download channels.

Under the terms of this five-year agreement, Encore will manage all sales, marketing and distribution of Hoyle PC interactive content worldwide. As a component of this new publishing opportunity, not only has Encore secured rights to the Hoyle brand, the Company has also secured worldwide, perpetual licensed rights to certain industry-leading software content and technology that will allow Encore to deliver new product releases for years to come. The company anticipates this agreement to grow Encore's annual net revenue by 8 - 12% in Fiscal Year 2006.

Cary Deacon, COO Publishing Navarre, commented, "The United States Playing Card Company agreement is important to the expansion of our publishing business into growth categories. The top-tier Hoyle brand and technology lands us squarely in the center of the PC game retail and download markets. With the signing of this agreement, we have added the undisputed brand leader in Family Entertainment to our impressive portfolio of leading names in Desktop Publishing and Education."

Gregory Simko, President of The United States Playing Card Company stated, "As we continue to manufacture market and distribute our brands in playing cards, children's card games, collectible tins, puzzles and card accessories, it was critical that we find a partner who could maximize our brand in the interactive market." Simko continued, "Encore's sales and marketing strengths, expertise in managing complex retail transitions and passion for the Hoyle brand, combined with Navarre's world-class distribution infrastructure, make them the ideal partner to build worldwide brand equity and market share."

Hoyle has been the authority on gaming rules for over 200 years, and the brand has been a leader in the Family Entertainment software market for nearly a decade. Best-selling products include Hoyle Casino, Hoyle Card Games, Hoyle Puzzle Games, Hoyle Table Games and dozens of other casual gaming titles. According to NPD, Hoyle currently commands 16% Family Entertainment market share based on dollar sales, and the flagship Hoyle Casino title holds the #1 rank.

"We're extremely excited about our new relationship with The United States Playing Card Company," says Michael Bell, Encore CEO. "Aligning ourselves with such a strong name in casual gaming extends our publishing business into a powerful new category. Casino games are up over 25% at retail year-to-date according to NPD, and Hoyle dominates this genre. Further, the electronic download market for PC games is projected to increase 80% in 2004 according to the current DFC Intelligence report on The Online Game Market." Bell continued, "The Hoyle brand and content are well positioned for maximizing this opportunity. We are confident that we can build even stronger brand equity and anticipate that we will increase market share for Hoyle at retail and online."

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 divisions; Distribution Services which includes PC software, video games, CD audio and DVD video; Publishing which includes Encore. Based in Los Angeles, CA, Encore is a majority-owned subsidiary of Navarre Corporation and a leading interactive publisher in the PC CD-ROM market. As a result of strategic relationships, the company publishes PC titles or compilations in major software categories from productivity to education. BCI Eclipse, 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 sites at http://www.navarre.com/ .

About The United States Playing Card Company

The United States Playing Card Company is the leader in the production and distribution of premier brands of playing cards, including BEE(R), BICYCLE(R), AVIATOR(R) and HOYLE(R) playing cards. BICYCLE(R) has been the best selling playing card brand in the world for more than 100 years. Based in Cincinnati, Ohio since its founding in 1867, the company manufactures, markets and distributes playing cards, children's card games, collectible tins, puzzles and card accessories. BEE(R), BICYCLE(R), AVIATOR(R) and HOYLE(R) are registered trademarks of The United States Playing Card Company.

Safe Harbor

"The statements in this press release that are not strictly historical are "forward looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are intended to be covered by the safe harbors created by these sections. The forward-looking statements are subject to risks and uncertainties and the actual results that the Company achieves may differ materially from these forward-looking statements due to such risks and uncertainties, including, but not limited to: the Company's dependence upon a key employee and its Founder, namely, Eric H. Paulson, Chairman of the Board, President and Chief Executive Officer, the Company's dependence upon a limited number of large customers that account for a significant part of its business, seasonality in its business and the fact that a large portion of the Company's revenues have traditionally been related to the holiday selling season, the Company's dependence on significant vendors, the Company's dependence on financing its significant working capital needs, the Company's dependence upon software developers and manufacturers, the Company's ability to maintain and grow its exclusive distribution business through agreements with recording artists, potentially changing retail consumer buying patterns in the PC software market, the Company's ability to avoid inventory return and obsolescence losses, the acquisition strategy of the Company could disrupt other business segments and/or management, tougher competition and/or new and different competition in the Company's traditional and new markets including through different means of distribution, technological innovation in the electronic downloading of music, increased counterfeiting or low or no cost downloading could impact product sales, uncertain growth in the publishing segment, the Company's dependence on information systems, the Company's credit exposure due to reseller arrangements, the potential for future terrorist activities to disrupt operations or harm assets, the Company's dependence on third-party shipping of its product, significant Company stock volatility, and the Company's anti-takeover provision may discourage take-over attempts beneficial to shareholders. A detailed statement of risks and uncertainties is contained in the Company's reports to the Securities and Exchange Commission, including in particular the Company's Form 10-K for the year ended March 31, 2004. Investors and shareholders are urged to read this document carefully. The Company can offer no assurances that any projections, assumptions or forecasts made or discussed in this release, "NAVARRE'S ENCORE SUBSIDIARY SIGNS EXCLUSIVE LICENSING AGREEMENT WITH THE UNITED STATES PLAYING CARD COMPANY FOR HOYLE BRANDED PRODUCTS", dated December 21, 2004, will be met, and investors should understand the risks of investing solely due to such projections. The Company undertakes no obligation to revise any forward-looking statements in order to reflect events or circumstances that may arise after the date of this press release.

Investors and shareholders may obtain free copies of the public filings through the website maintained by the SEC at http://www.sec.gov/ or at one of the SEC's other public reference rooms in New York, New York or Chicago, Illinois. Please call the SEC at 1-800-SEC-0330 for further information with respect to the SEC's public reference rooms. Free copies of these documents may be obtained by contacting Kathy Conlin at 763-535-8333.


Source: Navarre Corporation

CONTACT: Jim Gilbertson, Vice President and Chief Financial Officer,
jgilbert@navarre.com , or Cary Deacon, COO Publishing, cdeacon@navarre.com ,
or Joyce Fleck, VP Marketing, jfleck@navarre.com , all of Navarre Corporation,
+1-763-535-8333 ; or Michael Bell, CEO Encore, +1-310-768-1800, or
mbell@encoreusa.com

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


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