ENCORE SIGNS PUBLISHING AGREEMENT WITH JOWOOD PRODUCTIONS SOFTWARE AG

Nine games from Austrian publisher to receive broad U.S. distribution and marketing

Los Angeles, CA - March 31, 2003 - Encore, a majority-owned subsidiary of Navarre Corporation (NASDAQ: NAVR), today announced that it has signed an exclusive publishing agreement with JoWooD Productions Software AG, an Austrian game developer and publisher, for the marketing and distribution of nine games throughout North America. Encore is managing sales, distribution and marketing for these titles, while JoWooD Productions is delivering the content. Terms of the agreement were not disclosed.

AquaNox 2: Revelation, Wild Life Park, Cold Zero and Chaser are among the PC titles covered by this agreement, all of which will be available for the holiday 2003 selling season and will carry approximate retail prices ranging from $20 to $40.

Said Michael Bell, Encore's CEO, "This agreement with JoWooD Productions takes our publishing partnership program to a whole new level, not only because of the quantity of titles, but also because of the quality. JoWooD Productions has a solid reputation as a game developer and publisher in Europe, and we are looking forward to strengthening its U.S. presence. This agreement provides JoWooD Productions with the U.S. retail muscle it needs, while giving Encore the opportunity to broaden its product mix."

Said Andreas Tobler, CEO of JoWooD Productions Software AG, "This is testament to our new strategy for finding suitable partners in key territories. We are pleased to partner with Encore, a company that can effectively extend our successes in Europe to the U.S. This is important both for the success of our games and for our company."

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 shipped Dragon's Lair 3D™, and Daredevil™ in conjunction with the feature film. Encore recently entered the PC utilities software market with Safeworld™, a powerful yet easy-to-use line of Internet security products. The company also offers a broad range of PC titles under internationally recognized brands such as Sesame Street™ and Kaplan™.

About JoWooD

JoWooD Productions Software AG, a publicly traded company on the Vienna Stock Exchange, is rapidly establishing itself as a leading force in the video games industry. Its strategy is to identify, develop and publish internationally competitive, high-quality entertainment software for all existing next-generation gaming platforms. JoWooD Productions has in-house development facilities in Vienna and Ebensee, Austria, and a fast growing roster of exceptional subsidiary studios, including Wings Simulations and Massive Development in Germany. JoWooD Productions Software AG's head office is based in Austria with wholly owned subsidiaries operating out of the UK, Germany, Japan and the USA.