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PHANTOM CRASH SHIPS EXCLUSIVELY FOR XBOX

New 3D mech game for the Xbox video game system hits store shelves just in time for the holidays

Los Angeles, CA - November 6, 2002 - Encore, a subsidiary of Navarre Corporation (NASDAQ: NAVR), today announced that the highly anticipated Phantom Crash™, exclusively for the Xbox™ video game system from Microsoft, has begun shipping. Set in futuristic Tokyo, Phantom Crash is a 3D mech game that offers fast-action gameplay and virtually unlimited customization possibilities for up to four players. In single-player mode, players can also participate in Phantom Crash's rich story line. The game, co-published by Encore and Phantagram Interactive, carries a "Teen" rating and is available at leading videogame retailers nationwide for approximately $50.

"Phantom Crash has been praised in many previews for its unique approach to mech gaming, its depth of customization and its fast play," said Michael Bell, CEO of Encore. "We are excited to publish a game like Phantom Crash, which we believe will be on many gamers' 'must-have' list for the holidays."

Added Robert Westmoreland, CEO of Phantagram Interactive, "We are eagerly awaiting the arrival of Phantom Crash in stores. As our first console release in North America, it will be the first of many more that we will co-publish with Encore."

Fast-Action Rumbling in Old Tokyo

The year is 2025, and the Japanese government, in order to cope with the massive air pollution and Tokyo's massive economic losses, transfers the capital to "Neo Tokyo," a dome city built on the Tokyo Harbor. Seven years later, abandoned "Old Tokyo" becomes the battleground for "Rumbling," a popular new sport. In Rumbling, contenders face each other while riding highly mobile armored land vehicles called "Scoobees," and receive fortune and fame by destroying others.

The game offers such features as:

  • - Virtually unlimited possibilities for gamers to customize their mechs to fit their playing style. Multiple options are available in: -Weapons(over 65) -Armor and body parts (over 150) -Decals (over 200) -Paint schemes/Camouflage (over 50) -Speed, destruction power and durability (determined by the mech configuration chosen) -Animal powers/Combat enhancers (16)

  • - RPG elements including rich story mode and customization

  • - Fast-action gameplay and highly customizable Scoobees for extreme mech combat

  • - A unique cloaking feature that allows players to blend with their environment, sneak past enemies and avoid deadly tracking weapons

  • - A balanced weapons and parts system, where no mech is more powerful than another. Fighting style is the key to success in the game.

  • - Single-player and multi-player modes (up to 4 players)

  • - A selection of over 70 songs gamers can program to listen to while playing

  • - Japanese-style action, environments and gameplay

More information on the game is available at the newly re-launched Phantom Crash web site: www.phantomcrash.net.

About Encore

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

Encore products are sold in over 35,000 stores nationwide, and in major international markets. For more information on Encore and Navarre Corporation, visit www.encoreusa.com and www.navarre.com.

About Phantagram Interactive

Phantagram Interactive, an international publisher and distributor of electronic entertainment software, combines the best game development, publication, global marketing and comprehensive media mixing business to reach the global electronic entertainment industry. Phantagram's first international title, Kingdom Under Fire, was fully localized in 13 different languages and became a huge success in over 30 countries. For more information, visit www.phantagraminteractive.com.

About Xbox

Xbox (http://www.xbox.com/) is Microsoft's future-generation video game system that delivers the most powerful games experiences ever. Xbox empowers game artists by giving them the technology to fulfill their creative visions as never before, creating games that blur the lines between fantasy and reality. Xbox is now available in North America, Japan, Europe and Australia.

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Xbox is a trademark of Microsoft Corporation in the United States and/or other countries.



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