Esplice Chooses Digital River To Provide E-Commerce Services for Its Affiliate Store Network; Alliance Expands eSplice's E-Commmerce Offerings.

Business Editors, High-Tech Writers

MINNEAPOLIS--(BUSINESS WIRE)--Oct. 30, 2000

eSplice, Inc., a wholly owned subsidiary of Navarre Corporation (Nasdaq: NAVR), today announced an agreement with Digital River, the world's largest Commerce Service Provider (CSP). Under the terms of the agreement, eSplice will be able to access Digital River's digital software products -- including titles from the software industry's leading publishers via Digital River's global commerce system. eSplice provides access to large, segmented consumer audiences through its affiliate entertainment superstore network.

"Our relationship with Digital River greatly benefits eSplice's large affiliate audience," said Ian Warfield, President and Chief Operating Officer, eSplice, Inc. Our partnership with an e-commerce leader like Digital River represents a milestone in our development of a one-stop affiliate store solution for physical and digital software products."

ESplice, Inc., a wholly owned subsidiary of Navarre corporation, is a breakthrough provider of business-to-business e-commerce services to national packaged goods, OEM, service, media, marketing, membership and affinity organizations. ESplice builds, hosts and manages custom-merchandized private-label online entertainment superstores that integrate music, video, software, video game and spoken audio products in physical and digital form. ESplice's solution integrates the purchase of physical and digital goods within a single shopping cart transaction.

Navarre Corporation, major business groups are: Computer Products Division, which distributes consumer software to retailers nationwide; Independent Music Distribution which distributes independent music labels in the United States and Canada; Alternative retail Markets, which distributes major label music to non-traditional retail outlets and also distributes DVD Home Video product. Navarre operates a" business-to-business" Internet e-commerce website www.navarre.com; Navarre has an ownership position in NetRadio Corporation featuring originally programmed audio content at www.netradio.com and its online store. For more information please visit 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 seasonally 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. 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.