Navarre's BCI Signs Exclusive Agreement for DVD Distribution of Entertainment Rights' Filmation Catalog

Navarre's BCI Signs Exclusive Agreement for DVD Distribution of Entertainment Rights' Filmation Catalog

Deal Covers 230 Hours of Programming, Including She-Ra: Princess of Power(R) and Other Classic Filmation Characters

LOS ANGELES, Jan. 17 /PRNewswire-FirstCall/ -- BCI, a wholly-owned subsidiary of Navarre Corporation (NASDAQ:NAVR), has licensed the long-term distribution rights in the US and Canada to programming from Entertainment Rights Plc's ("ER") Filmation portfolio of classic contemporary characters, including the iconic She-Ra: Princess of Power(R). This appointment follows BCI's recent success as US distributor of ER's He-Man and the Masters of the Universe(R), which recently received the 2005 TV DVD Award for Best 1980's Series.

"BCI is thrilled to be bringing these classic animated series to DVD for the first time in North America," said Greg Glass, senior VP, BCI. "With the tremendous success of the first He-Man(R) titles, we're confident that our fan base will be ready for more of these classic animated characters on DVD."

"We are delighted to extend our business with BCI to incorporate more of the Filmation titles, following the company's great success with He-Man on DVD," said Kathleen Hrick, executive VP, managing director, USA, Canada and Latin America, Entertainment Rights. "The Filmation catalog is a valuable asset, as this latest deal demonstrates, and we will continue to exploit the huge potential of these much loved brands."

The agreement offers BCI distribution rights to animated titles and characters never before available on DVD, including She-Ra: Princess of Power(R); The Legend of Bravestarr; Ghostbusters; The New Adventures of Zorro; The Lone Ranger; Groovie Goolies; Snow White Happily Ever After; as well as several live action series.

Working alongside ER, BCI will be implementing an innovative marketing and promotional campaign throughout 2006 and beyond, capitalizing on the popularity of these classic brands. The program will follow the successful promotion and marketing of He-Man(R), which has been released on DVD and Universal Media Disc ("UMD") for Sony "PSP."

BCI has once again retained the services of two prominent consultants, Andy Mangels and Val Staples, who were highly instrumental in the production of the He-Man(R) DVD, specifically the added collectible features.

About Navarre Corporation

Navarre Corporation is a publisher and distributor of a broad range of home entertainment and multimedia products, including PC software, CD audio, DVD video, 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 clubs, office and music superstores, military and e-tailers nationwide. The company currently provides its products to over 18,000 retail and distribution center locations throughout the United States and Canada. Navarre has recently expanded its business to include the licensing and publishing of home entertainment and multimedia content, primarily through the acquisitions of Encore Software, Inc., BCI Eclipse Company, LLC, FUNimation Productions, Ltd. and The FUNimation Store, Ltd. For more information please visit the company's web site at http://www.navarre.com/ .

About BCI

BCI is an independent entertainment video and audio supplier. BCI has continually redefined the standards and concepts of this industry, often introducing national success categories through its intuitive mass marketing skills. Its vast collection of titles represents both exclusively licensed titles from around the world, as well as in-house produced CDs and DVDs. For over 15 years, BCI has brought the finest quality music and movies to homes.

About Entertainment Rights
-- Entertainment Rights Plc ("ER") is one of the UK's leading specialist
media groups focused on the ownership of high quality children's and
family programming, characters and brands.
-- ER owns or controls the rights to many classic characters including
Basil the Brush(R), Postman Pat(R), Jess the Cat(TM), Little Red
Tractor(TM), Rupert Bear(R), He-Man and the Masters of the Universe,
Fat Albert and the Cosby Kids, She-Ra and Ghostbusters.
-- Since 1999, when ER owned rights to just 50 hours of programming, ER's
library has grown to over 1,800 hours of high quality children's and
family characters and brands. This includes selected rights to global
brands such as Mattel's Barbie(TM), Scholastic's Clifford(TM),
Hasbro's Transformers(TM), Harveytoons Casper the Friendly Ghost and
Classic Media's Felix the Cat.
-- ER's wholly owned subsidiary Tell-Tale Productions, created and
produced The Tweenies, one of the UK's most successful pre-school
brands.
-- In October 2005 ER acquired the majority interest in Rupert Bear(R),
one of the most recognizable children's characters in the world, from
Express Newspapers.
-- ER has grown rapidly. Annual revenues have increased from 1.8m pounds
Sterling in 1999 to 25.5m pounds Sterling in 2004, the last reported
financial year.

Source: Navarre Corporation

CONTACT: Haug Scharnowski, VP Corporate Relations of Navarre
Corporation, +1-763-535-8333, hscharnowski@navarre.com

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

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