Navarre Distributes 2 New Music Companies -- Scarlet Moon Records and Grapeshot Media.

Business Editors, Entertainment Writers

MINNEAPOLIS--(BUSINESS WIRE)--Aug. 8, 2000

Navarre Corporation (Nasdaq:NAVR), announces today that the company has signed Scarlet Moon Records, Inc. and Grapeshot Media to exclusive distribution agreements for the United States and Canada. Scarlet Moon is founded by award-winning singer/songwriter Paul Overstreet, who is signing former major label artists who have written other artists' hit songs. The label will initially focus on the country and Christian markets. Grapeshot Media is comprised of two record labels; Grapeshot Records, a studio recording label, and Live Archive, a growing collection of diverse concert recordings.

Jim Chiado, VP/GM Independent Music states, "We're proud to welcome both of these labels to Navarre. Having written 27 Top Ten hits, Scarlet Moon's Paul Overstreet is a preeminent talent in our industry. Grapeshot's roster of talent is equally regarded throughout the industry and Navarre will greatly expand its catalog at retail."

Scarlet Moon Records' first two projects are written and sung by Overstreet. The country CD "A Songwriter's Project Volume I," features eight previously recorded hits, plus four new songs, and will be available through Navarre later this summer. The Christian CD, "Living by the Book", features twelve new songs and will be available through Navarre in early fall. Both CDs are currently accessible in Christian bookstores, which are serviced by New Day Christian distributors.

"Navarre understands the needs of independent music labels and we're confident that they will help Scarlet Moon reach beyond the country and Christian markets," comments Overstreet.

Grapeshot Media's two labels will release approximately 15 CDs annually through Navarre. On August 22, jazz legend Bob Moses' first record in over six years, "Nishoma" will be released on Grapeshot Records, and "Live at the Gaslight" by Mississippi Fred McDowell will be released on Live Archive. Live Archive will release three additional CDs on September 12. "The Black Album", by comedian Richard Lewis, "Live at the Lizard Lounge", by Club d'Elf, and Osibisa's "African Dance Party (Best of Live 1976-1998)."

States Anton Glovsky, President and founder of Grapeshot, "We believe that our artist roster and Navarre's strong presence in the independent music scene will be a successful combination. We are excited to join their label family."

Scarlet Moon's staff is based in Kingston Springs, Tennessee and includes Overstreet as president, Lisa Wysocky as general managers, Aaron Hodge as Overstreet's assistant, and Julie Miller Overstreet as vice president of Creative Services. Wysocky is a noted speaker and author who was president of her own public relations firm, White Horse Enterprises, Inc. for the past eleven years. Hodge is an ordained/licensed minister who formerly worked for an independent Christian label, CFN Music. Miller Overstreet has been a free-lance specialist in album, video, make-up and set design.

The Grapeshot management team is headed by President and founder Anton Glovsky, who oversees label development and record production. He has produced more than 70 records by such acclaimed artists as Odetta, Charlie Parker, Louis Armstrong, Dizzy Gillespie, Lightnin' Hopkins, Bill Broonzy, Sonny Terry & Brownie McGhee, and New York's Pro Musica Antiqua. Previously, Glovsky worked at Rykodisc/Tradition/Gramavision, where he oversaw the release and marketing of the Rykodisc Au20 audiophile series (David Bowie, Frank Zappa, Elvis Costello, etc.) Glovsky is a Grammy-voting member of the The National Academy of Recording Arts and Sciences (NARAS).

Grapeshot's Director of Sales and marketing, Jeff Raymond, and Publicity Manager, Baird Duschatko, were also previously employed at Rykodisc. Raymond Morphine, among many others, and worked at Hannibel and Gramavision. Duschatko worked in Rykodisc's Product Management department and was involved in concert promotions in Telluride, Colorado.

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.; eSplice, Inc. distributes both physical and digital content, including music and software over the Internet. 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.