Said Michael Bell, CEO of Encore, "Our agreement with Phantagram continues to execute on our strategy of bringing high-quality videogames to market. This relationship plays to our strengths in sales and distribution, while expanding our videogame offerings."

Said Robert Westmoreland, CEO of Phantagram Interactive, "Working with Encore allows us to focus on our strengths in product development while leveraging Encore's expertise in successfully bringing videogames and PC games to market. We are very excited about the upcoming launch of Phantom Crash, our first console release in North America, and working with Encore to make that game a hit at retail."

About Encore

Encore, a wholly owned subsidiary of Navarre Corporation (NASDAQ: NAVR), is a leading interactive publisher in the videogame and PC CD-ROM markets. Earlier this year, the company shipped Circus Maximus, and future releases include such highly anticipated next-gen console games as Dragon's Lair 3D and Daredevil. Encore also offers a broad range of titles under internationally recognized properties 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. The company has been recognized in the past two years by Inc magazine as one of America's 500 fastest growing private companies. For more information regarding Encore and Navarre Corporation, visit www.encoresoftware.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.