DRAGON'S LAIR 3D - RETURN TO THE LAIR FOR NINTENDO GAMECUBE BEGINS SHIPPING

Eagerly awaited reinvention of the 1980's arcade classic ships to retailers

Los Angeles, CA - January 6, 2003 - Encore, a majority-owned subsidiary of Navarre Corporation (NASDAQ: NAVR), today announced that Dragon's Lair 3D(tm) - Return to the Lair for the Nintendo GameCube(tm) has begun shipping to retailers. This completely new, built-from-the-ground-up version of the classic Dragon's Lair(tm) arcade game - featuring legendary characters, great gameplay, and impressive imagery created by Don Bluth and Rick Dyer - retails for approximately $50 and carries a "Teen" rating.

"Gamers have been waiting for years to re-live the Dragon's Lair experience they remember so well from the 1980's arcades," said Encore CEO Michael Bell. "We're thrilled to provide them with an exciting experience that makes this game worth the wait. It's all there - from Dirk's bumbling moves and brilliantly illustrated scenes in the castle, to the addictive gameplay and timeless story. Additional elements such as true control over Dirk, new characters, and new movies created by Don Bluth make this game equally compelling for a whole new generation of gamers."

A Dragon, A Damsel and A Courageous Knight

Dragon's Lair 3D follows the basic storyline of the arcade classic: Dirk the Daring, a goofy but courageous knight, is on a mission to rescue Princess Daphne, who has been kidnapped by the evil dragon Singe and hidden in the wizard Mordroc's castle. The game stays true to the design of the1980's arcade classic, but is seven times the size of the original, and includes several new plot twists.

In this version, players have full control of Dirk, who must overcome challenges such as navigating through a cave of lava, swinging from burning ropes and unlocking hidden chambers in the castle to find Daphne. Princess Daphne also plays an integral new role in the game, acting as a guide for Dirk's journey. Singe, the Lizard King, the Giddy Goons, the Crypt Creeps and other characters familiar to players of the original arcade game have starring roles, along with over a dozen new characters created by Don Bluth that add new dimensions to the plot.

About Encore

Encore, a majority owned subsidiary of Navarre Corporation (NASDAQ: NAVR), is a leading interactive publisher in the videogame and PC CD-ROM markets. The company recently began shipping Phantom Crash(tm), a 3D mech game, and upcoming releases include such highly anticipated console games as Dragon's Lair 3D(tm) and Daredevil(tm). Encore also offers a broad range of PC titles under internationally recognized brands such as Sesame Street(tm), Dragon Tales(tm), National Geographic® and Kaplan(tm).

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