Neighbors from Hell Goes Gold

NEIGHBORS FROM HELL, A HILARIOUS SPOOF ON
REALITY TV, GOES GOLD

In 14 episodes of mayhem, gamers play
practical jokes on their unsuspecting neighbor; audience feedback via the laugh
meter critiques the player’s technique

Los Angeles, CA – August 12, 2003 – Encore, a
majority-owned subsidiary of Navarre Corporation (NASDAQ: NAVR), today announced
that Neighbors from Hell has gone gold. The PC game, co-published by Encore with
content delivered from Austria-based JoWooD Productions Software AG, is
anticipated on store shelves in September, and will retail for approximately
$30.

Said Michael Bell, Encore’s CEO, "This game
has incredible mass-market appeal, and is particularly timely with the current
popularity of reality TV shows. The cartoon-style graphics, terrific soundtrack,
and original and addictive gameplay make this game a winner."

Added Andreas Tobler, CEO of JoWooD
Productions Software AG, "Neighbors from Hell is a unique game that nicely
rounds out the JoWooD line-up arriving on store shelves next month. Additional
JoWooD titles include AquaNox 2: Revelation, Cold Zero and Chaser, and we are
pleased to partner with Encore on all of these games for nationwide
distribution."

Spoofing Reality TV

As part of a new reality TV show, players get
revenge on their "in-game" neighbor, an unpleasant, obnoxious and annoying
fellow. This revenge is enacted by creeping around the neighbor’s house and
performing practical jokes on the unsuspecting resident — without getting
caught. Every time the neighbor falls into one of these traps, the player is
rewarded with applause and laughter from the audience. Features of the game
include 14 episodes of mayhem, dozens of practical jokes and terrific
cartoon-style graphics.

About Encore

Encore, a majority-owned subsidiary of
Navarre Corporation (NASDAQ: NAVR) is a leading interactive publisher in the PC
CD-ROM and videogame markets. The company will release close to a dozen new
entertainment titles in the coming months through licensing or publishing
agreements with Marvel (DaredevilT), JoWooD Productions (AquaNox 2: Revelation,
Cold Zero and Chaser among others), Conspiracy Entertainment (Rally
Championship) and Prolific Publishing (Marine Aquarium 2.0). Encore also offers
PC titles or compilations in nearly every major software category from business
and productivity to education and kids, including brand names such as Sesame
StreetT, Advantage and SafeworldT.

Encore products are sold in thousands of
retail outlets nationwide, and in major international markets. For more
information on Encore and Navarre Corporation, visit

www.encoreusa.com
and
www.navarre.com.

About JoWooD Productions Software

JoWooD Productions Software AG, a publicly
traded company on the Vienna Stock Exchange, is rapidly establishing itself as a
leading force in the video games industry. Its strategy is to identify, develop
and publish internationally competitive, high-quality entertainment software for
all existing next-generation gaming platforms. JoWooD Productions has in-house
development facilities in Vienna and Ebensee, Austria, and a fast growing roster
of exceptional subsidiary studios, including Wings Simulations and Massive
Development in Germany. For more information on JoWooD, visit

www.jowood.com.