Navarre Corporation Announces Agreement With Apple; Strategic Alliance Encompasses Apple Retail Stores and Web Fulfillment

Business Wire, Sept 26, 2001

Business Editors & Technology Writers

MINNEAPOLIS--(BUSINESS WIRE)--Sept. 26, 2001

Navarre Corporation (Nasdaq:NAVR) today announced that Navarre Distribution Services has formed a strategic alliance with Apple, Inc.

The terms of the agreement will encompass two distinct areas of business development between the two companies. Navarre Distribution Services will supply third party Apple software to Apple's new retail stores and the Apple.com web site. Apple will also utilize Navarre in establishing distribution for new developing Mac publishers.

Initially, product will be shipped directly to Apple's distribution center for fulfillment of the retail store needs as well as customer order fulfillment. In the near future, Navarre will facilitate shipping orders directly to stores and customers. Apple has announced its retail strategy which includes opening over twenty stores by the end of the year.

Brian Burke, Vice President/General Manager Navarre Distribution Services, stated, "We are excited at the many opportunities this agreement brings to our company. The Mac purists have readily accepted Apple's new retail strategy and we are ready to fulfill their direct-to-customer orders in the coming months. Equally as exciting to us is the prospect of increasing Apple's business with new developing publishers."

Eric Paulson, Navarre's President and Chief Executive Officer stated, "In continuing the growth of our software business, it is important to look for ways to diversify and increase the product offerings to our retail customers nationwide. We see this agreement with Apple as a solid step towards achieving that goal."

Navarre Corporation's major business groups are: Navarre Distribution Services, which distributes non-proprietary quality entertainment products including consumer software, major label music and DVD to a broad base of retailers nationwide; and Navarre Entertainment Media, which distributes proprietary entertainment products including independent music and DVD in the United States and Canada; the Company operates a "business to business" Internet E-Commerce web site www.navarre.com.

The statements in this press release that are not strictly historical are "forward looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are intended to be covered by the safe harbors created by these sections. The forward looking statements are subject to risks and uncertainties and the actual results that the Company achieves may differ materially from these forward-looking statements due to such risks and uncertainties, including developments in the retail and consumer markets for prerecorded music products and computer software products, retail consumer buying patterns, new and different competition in the Company's traditional and new markets, the Company's dependence upon seasonality in its business, the Company's ability to attract and retain large retail customers that account for a significant part of its business, the Company's ability to successfully act as distributor to on-line retailers, the Company's ability to manage its inventory, the Company's dependence upon recording labels and artists, the Company's ability to react to changes in the distribution of software and prerecorded music and the Company's ability to successfully defend itself against litigation. A detailed statement of risks and uncertainties is contained in the Company's reports to the Securities and Exchange Commission, including the Section entitled: Forward Looking Statements" in the Company's Form 10-K for the year ended March 31, 2001. The Company undertakes no obligation to revise any forward-looking statements in order to reflect events or circumstances that may arise after the date of this press release. The Company can offer no assurances that any projections, assumptions or forecasts made or discussed in this press release "Navarre Corporation Announces Agreement with Apple", dated September 26, 2001, will be met, and investors and prospective investors should understand the risks of investing solely due to such projections. The Company undertakes no obligation to revise any forward-looking statements in order to reflect events or circumstances that may arise after the date of this press release.