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™ - Return to the Lair for the Nintendo GameCube™ has begun shipping to

retailers. This completely new, built-from-the-ground-up version of the

classic Dragon's Lair™ 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.

Dragon's Lair 3D features true 3D gameplay; complete control over Dirk;

over a dozen new characters; 43 massive areas and more than 250 new rooms

to explore; new intro and ending movies created by acclaimed animation

director Don Bluth; an original music score; and much more. More

information on the game is available at the game's official website:

www.dragonslair3d.com.