Navarre Corporation Announces Extension With Equity Music Group

Navarre Corporation Announces Extension With Equity Music Group

New Agreement Runs Through November 2008

MINNEAPOLIS, July 17 /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 two-year extension with Equity Music Group for US and Canadian distribution.

Equity Music Group, founded by industry veterans Mike Kraski, Clint Black and Charles Sussman, is one of the fastest growing independent music labels since its inception in 2003. The label has an impressive list of artists including recording legend Clint Black, the highly acclaimed artists Little Big Town, Carolina Rain, Mark Wills and Laura Bryna.

Since signing a distribution agreement in 2003, Equity Music Group and Navarre Entertainment Media have shared several successes. Most recently, Little Big Town received their first gold record for selling 500,000 copies of the album The Road to Here. Since its release on October 4, 2005, The Road to Here has been on the Billboard Top 200 Album chart, Country Album chart, and Mass Merchants chart for 40 consecutive weeks. The album also ranked #1 on the Indie Album chart for eight weeks. Little Big Town was also chosen to perform on opening night of this year's CMA Music Fest (Fan Fair) which will be re-broadcast on July 24th on ABC. In addition, the band is on tour throughout the Fall.

Bob Freese, Vice President and General Manager of Navarre Entertainment Media, commenting on the extension with Equity Music Group said, "Mike Kraski and the entire team at Equity Music Group have successfully introduced a new business model to the music industry. By providing their artists with ownership and equity they have developed a unique, lasting partnership between artist and label. Equity's business model coupled with their ability to find music talent has lead to unprecedented revenue and market share growth. We are obviously thrilled with the extension we announced today and we look forward to continuing to grow Equity's business using Navarre's promotional, marketing and distribution expertise."

"We are absolutely thrilled to continue our relationship with Navarre," said Mike Kraski, President of Equity Music Group. "Not only have they proven to us that they have an effective and passionate sales force, they have also shown themselves to be committed partners. The needs of a start-up label are as numerous as they are diverse and Navarre has answered the call every time. It's the least we could do to return the favor and extend our deal with them."

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 and 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 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 Software, BCI, and FUNimation. For more information, please visit the company's web site at http://www.navarre.com/.

About Equity Music Group

The unique new business model on which Equity Music Group is founded was the brainchild of partners Clint Black, Mike Kraski and Charles Sussman. Since the company's inception in 2003, this business model has positioned Equity as the alternative to the prevalent major-label system that treats artists as works-for-hire, and creates instead a revolutionary true partnership between the artist and the record label. Equity has built an infrastructure that not only allows it to compete effectively in the country music marketplace, but also to sign, promote and market artists in many other formats as well. Led by President Mike Kraski, the label's employee roster boasts a combined music business experience of well over 250 years.

The current Equity Music Group roster of artists manifests both depth and diversity. Clint Black has been at the forefront of country music since the late 1980s, and has already had a great deal of success on many levels. His celebrated songwriting and traditional country style are much-admired in all critical circles. Little Big Town is fast emerging onto the country music scene as one of its most vibrant and unique new artists, who, along with newcomers Carolina Rain, are bringing country music back to its roots while at the same time offering very progressive musical styles. Mark Wills has been a mainstay of country radio for almost ten years, and is poised to be redefined in this genre. New artist Laura Bryna brings forth a unique style and a confidence all her own.

Source: Navarre Corporation

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

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

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