ENCORE ANNOUNCES NEW AFFILIATE LABEL PROGRAM

Publishing partners can choose from a wide range of sales,

distribution, marketing and public relations services

customized to meet their needs; Conspiracy Entertainment one of the first

participants in the program

Los Angeles, CA - May 6, 2003 - Encore, a majority-owned subsidiary of

Navarre Corporation (NASDAQ: NAVR), today announced that it has launched a

new Affiliate Label Program designed to offer developers and smaller

publishers a new vehicle for bringing their CD-ROM software and console

video games to market. Via this new program, partners can select from a

broad range of publishing and distribution services that can be combined

into a comprehensive package or selected individually. These services

include sales, distribution, inventory purchasing and management,

marketing, detailed reporting, and public relations, as well as customer

and technical support.

"This program gives our affiliate label partners customized options to

meet their specific needs," said Richard Lowenthal, Encore's Vice

President, Licensing & Business Development. "And, unlike larger

companies with somewhat similar programs, Encore focuses on making

affiliate label products a top priority. This translates into greater

retail success and profitability for our partners."

Added Michael Bell, Encore's CEO, "Encore has almost a decade of

experience in the retail channel. We've built a solid infrastructure that

allows us to excel at bringing software to market, from packaging design,

public relations and inventory management to retailer relationships,

international market penetration and more."

The Newest Partner - Conspiracy Entertainment

Encore is kicking off the new Affiliate Label Program with Conspiracy

Entertainment. That company recently signed a distribution agreement with

Encore in which Conspiracy will be responsible for the content, marketing

and public relations for Rally Championship, a 3D rally racing game, while

Encore will manage the game's North American sales and distribution.

Rally Championship will offer the ultimate rally driving experience with

29 officially licensed rally cars, 33 races and 6 rallies over 4 global

regions. This single- and multi-player console game (for up to four

players) is based on the award-winning PC version of Rally Championship.

In addition to a thrilling rally driving experience, the game will offer

realistic car physics that simulate both two-wheel-drive and

all-wheel-drive car handling.

Rally Championship is expected on retailers' shelves this summer for the

Nintendo GameCubeT for approximately $20.

Said Sirus Ahmadi, CEO of Conspiracy Entertainment, "Encore's strong

retail relationships are critical in bringing Rally Championship to the

broadest possible audience. We're very excited that Encore is our partner

for this game."