Destineer To Create Videogames Based On Hugely Popular Anime FULLMETAL ALCHEMIST.

New line of videogames to be based off the best-selling anime DVD and top-rated anime series.


Minneapolis, MN – June 06, 2006 – FUNimation Entertainment, a Navarre Corporation (NASDAQ: NAVR) company, and Destineer Publishing Corp., announced today a licensing arrangement that will bring a new line of video games to North America based on the popular anime title Fullmetal Alchemist™.

Fans have followed the journey of these young alchemists in 51 episodes, a full-length feature movie, graphic novels, action figures, character goods, apparel and a top-selling trading card game. The Fullmetal Alchemist series has become a fan favorite on Cartoon Network’s Adult Swim and it is one of the best selling anime series on DVD in the United States. The series follows the adventures of Edward and Alphonse Elric. The brothers are very gifted in the art of alchemy. They quickly learn their limits when they attempt to resurrect their mother, a desperate act that costs Edward an arm and Al his entire body. Outfitted with new metal limbs, Ed and Al, who is now bound to a suit of armor, set out to find the Philosopher Stone - the only thing that can restore them.

This new series of Fullmetal Alchemist video games, which will be made available for a variety of videogame platforms to be announced later this year, will be created and released through an exclusive publishing agreement with Destineer.

“Fullmetal Alchemist follows FUNimation’s extraordinary success bringing the world’s best anime to North America, such as Dragon Ball Z®, and Yu Yu Hakusho®” said Paul Rinde, Chief Executive Officer of Destineer. “Huge numbers of videogame players watch the Fullmetal Alchemist anime on TV every day, and now they’ll get the chance to play compelling Fullmetal Alchemist videogames, as well.”

“This is a great opportunity for us and for the Fullmetal Alchemist brand,” explained Gen Fukunaga, president and CEO of FUNimation Entertainment. “Destineer brings an incredible level of industry insight and experience to the table and we look forward to the development of exciting Fullmetal Alchemist games.”

The first installments of Fullmetal Alchemist games are anticipated for release this year.
Visit www.fullmetal-alchemistgame.com for more information.

CONTACT

Steven Charbonneau
Destineer Publishing
(763) 231-8015

scharbonneau@destineerstudios.com


About Destineer

Destineer develops and publishes commercial videogames for personal computers and videogame consoles, and it creates PC-based virtual training systems for military, intelligence and first-responder organizations. Destineer’s games include top-sellers such as Close Combat: First to Fight and John Deere: American Farmer, and it publishes its games under the Destineer, MacSoft, Bold Games, and Atomic Games brands. Destineer is a privately-held corporation headquartered in Minneapolis, MN, with development studios in Minneapolis and Austin, TX. More information is available at Destineer’s website: www.destineerstudios.com.


About FUNimation Entertainment

FUNimation® Entertainment, a wholly-owned subsidiary of Navarre Corporation (NASDAQ: NAVR), is a brand management company and one of the nation's leading independent home video entertainment companies. The company’s most recent initiative is the FUNimation ChannelSM, a new, 24-hour digital network featuring programming from the top anime brands in the United States. FUNimation has a proven formula for launching and advancing brands, and manages a full spectrum of rights for most of its brands including broadcasting, licensing, production, internet, and home video sales and distribution. For images, or more information on FUNimation Entertainment, the FUNimation Channel, or any of FUNimation’s properties, contact Jeff Dronen at 817-788-0627, ext. 251 or pr@funimation.com.


About Navarre Corporation

Navarre Corporation (Nasdaq: NAVR) is a publisher and distributor of a broad range of home entertainment and multimedia products, including PC software, CD audio, DVD and VHS video, video games and accessories. Since its founding in 1983, the company has established distribution relationships with customers across a wide spectrum of retail channels which includes mass merchants, discount, wholesale club, office and music superstores, military and e-tailers nationwide. The company currently provides its products to over 18,000 retail and distribution center locations throughout the United States and Canada. Navarre has recently expanded its business to include the licensing and publishing of home entertainment and multimedia content, primarily through the acquisitions of Encore Software, Inc., BCI Eclipse Company, LLC, FUNimation Productions, Ltd. and the FUNimation Stores, Ltd. For more information, please visit the company's web site at http://www.navarre.com .


©HIROMU ARAKAWA/SQUARE ENIX, MBS, ANX, BONES, dentsu 2004. Licensed by FUNimation® Productions, Ltd. All Rights Reserved.