Navarre's eSplice Signs Agreement With Liquid Audio to Provide Digital Music to Its B2B Network.

Business & Entertainment Editors

MINNEAPOLIS--(BUSINESS WIRE)--Sept. 7, 2000

Agreement gives subsidiary's affiliates access to extensive catalog of

digital music

Navarre Corporation (NASDAQ: NAVR) announced today that eSplice, Inc., its wholly owned subsidiary and Liquid Audio Inc.(NASDAQ: LQID) a leading provider of software and services for the Internet delivery of music, have teamed up to offer affiliate customers a selection of promotional and for-sale digital music downloads.

Esplice, Inc. provides private label online entertainment superstores to packaged goods, service, media, membership and affinity organizations. Liquid Audio will provide eSplice with secure Internet music delivery services and software including Liquid Audio's Retail Integration and Fulfillment System (RIFFS) enabling eSplice to sell 80,000 CD-quality music downloads from more than 9,800 artists on 1,500 labels. Liquid Audio's open music distribution system supports many leading technologies including MP3, Dolby Digital, AAC, Sony ATRAC3 and Windows Media, allowing merchants to sell a wide variety of music regardless of the format.

Starting this fall, consumers will be able to securely purchase and download digital music tracks through eSplice's affiliate store network. The catalog of tracks spans all genres of music including artists such as Bob Marley, The Cult, and Billie Holiday.

"Liquid Audio's exciting digital music catalog enhances eSplice's music offering through its affiliate store network," says Ian Warfield, president and chief operating officer of eSplice, Inc. "Our affiliate store partners can now promote and sell Internet singles from a growing catalog with CD-quality sound, online lyrics, liner notes and album art, regardless of format. RIFFS allows eSplice to integrate these downloads into its existing user environment so consumers can purchase Liquid Downloads right from the eSplice affiliate shopping cart."

"eSplice's affiliate store network provides Liquid Audio with distribution to new targeted consumer audiences through its affiliate store network," said Dick Wingate, senior vice president of content development and label relations. "Our open software and services for digital music delivery enables eSplice to integrate digital music downloads into its affiliate sites and sell them alongside physical goods. It also provides eSplice with application software enabling the distribution, tracking and commerce integration of digital music."

Navarre Corporation, major business groups are: Computer Products Division, which distributes quality consumer software to retailers nationwide; Independent Music Distribution, which distributes independent music labels in the United States and now 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 web site 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.

eSplice, Inc., a wholly owned subsidiary of Navarre Corporation, is a breakthrough provider of business-to-business e-commerce services to packaged goods, service, media, membership and affinity organizations. eSplice builds hosts and manages custom merchandised 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.

Liquid Audio, Inc. is a leading provider of software and services for the digital delivery of music over the Internet. The Liquid Audio solution gives musicians, record labels, Web sites and music retailers the ability to publish, syndicate and securely sell recorded music online with copy protection and copyright management. Using the Liquid(TM) Player software, available free download at www.liquidaudio.com, music fans can preview and purchase downloadable music from the more than 900 affiliate Web sites in The Liquid Music Network (SM). Traded on Nasdaq under the symbol LQID, Liquid Audio is located in Redwood City, California. Liquid, Liquid Audio, Inc., Liquid Audio, the Liquid Audio logo, Liquifier and Liquid Music are trademarks of Liquid Audio, Inc.

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.