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A Powerful Engine + High Profile Branded Portfolio

Ticker: NAVR

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FORWARD-LOOKING STATEMENTSThis presentation contains ‘‘forward looking statements’’ within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. These statements relate to future activities, events or developments. These statements may be identified with words such as ‘‘believe,’’ ‘‘anticipate,’’ ‘‘should,’’ ‘‘intend,’’ ‘‘plan,’’ ‘‘will,’’‘‘expects,’’ ‘‘estimates,’’ ‘‘projects,’’ ‘‘positioned,’’ ‘‘strategy’’ and similar expressions. These statements are based on assumptions and assessments made by our management in light of its experience and its perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. These forward-looking statements are subject to a number of risks and uncertainties that could cause the results anticipated in such forward-looking statements to differ materially from actual results, including but not limited to:

1) our ability to continue relationships with major customers and vendors and penetrate new channels of distribution;2) our ability to attract and retain qualified management personnel;3) increased competition in our business segments;4) demand for new and existing products;5) seasonality in our business;6) unanticipated developments that could occur such as litigation or catastrophic losses;7) our ability to finance our working capital needs;8) our dependence upon software developers and manufacturers;9) volatility in our stock price, including resulting from the exercise of outstanding warrants and options;10) we do not intend to pay dividends, so stock appreciation may yield the only return on an investment in our stock; 11) anti-takeover provisions may discourage takeover attempts beneficial to shareholders; 12) our directors may not be personally liable for certain actions which may discourage shareholder suits against them;13) changes in the environment for making acquisitions and dispositions, including the effect of any changes in accounting or regulatory requirements or in the market value of

acquisition candidates;14) our ability to retain key FUNimation personnel, integrate the FUNimation operations and other acquired businesses into our operations and operate such businesses

profitably; 15) our revenues depend upon a small number of large customers and properties; 16) a significant portion of our revenues are subject to consumer demand, which can be highly volatile;17) our ability to protect our intellectual property rights;18) our ability to achieve efficiencies and cost reductions; and19) other risks and uncertainties that affect the distribution sector generally including, but not limited to, economic, political, governmental and technological factors affecting

our operations, markets, products, services and prices.

A detailed statement of certain of these risks and uncertainties is contained in the Company’s reports to the Securities and Exchange Commission, including in particular the Company’s Form 10-K and Form 10-K/A for the year ended March 31, 2005. Investors and shareholders are urged to read these documents carefully.

Forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from such forward-looking statements due to the items noted above or other reasons. We disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the foregoing.

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Investment HighlightsEstablished Company with track record of growth and performance

Company in business for 24 yearsFounded by current Executive Chairman - Eric Paulson

Growth strategy – continue Navarre’s transformation into a Publisher and Licensor of physical and digital entertainment media

Growth opportunities in Distribution and Publishing—organic and through content and corporate acquisitionsDigital growth opportunities that include ESD, Mobile, Interactive Internet and Wireless

Focus on financial operating results in fiscal year 2007Strengthened balance sheet – debt reduced to $76.4 million at December 31, 2006

Estimated net sales of $690 million to $700 million

Estimated EBITDA of $31 million to $33 million, before share-based compensation of $800k

Estimated net income of $7 million to $8 million

Includes amortization expense primarily related to FUNimation of $8 million and depreciation expense of $3 million

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Mission Statement

Continue Navarre’s transformation into

a leading Home Entertainment Publishing

& Licensing Company using our highly effective

physical and digital distribution services

operation as a platform.

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Corporate Structure

DistributionDistribution Publishing & LicensingPublishing & Licensing

PCSoftware

PCSoftware

Independent Music

Independent Music

VideoGamesVideo

GamesDVD/VideoDVD/Video

FUNimation

Anime —Home Video & Merch./Lic.

FUNimation

Anime —Home Video & Merch./Lic.

BCI

DVD Video/Music

BCI

DVD Video/MusicEntertainment, BusinessPC Software

Entertainment, BusinessPC Software

ENCOREAccessoriesAccessories

Digital & PhysicalDistribution

Digital & PhysicalDistribution

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Demonstrated ResultsFinancial performance validates strategic growth of Publishing & Licensing business - reflects strength of distribution platform

Substantial Y-over-Y revenue growth leads to company-record EBITDA

(1) Figures on graph In millions (2) Fiscal year 2006 excludes $12.7 million write-off related to

Musicland bankruptcy and $4.1 million write-off of balances related to an independent music label.

$0

$200

$400

$600

FY03 FY04 FY05 FY06 FY07E

$596.3

$475.2

$359.4

Net Sales (1)

CAGR 17.9%

$0

$5

$10

$15

$20

$25

$30

$35

$40

FY03 FY04 FY05 FY06 FY07E

EBITDA (1)

Guidance

Guidance

$5.8$8.5

$13.0

$31.0 -$33.0

CAGR 53%

$690 -$700

$686.1

$31.6

(2)

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(1) Before inter-company eliminations(2) CAGR calculated from FY2003 year end results to projected FY2007 end results(3) Represents gross margin as of FY2007 third quarter end

Company Transformation in Progress -Segment Contribution

Distribution 30%

EBITDA- FY2007E(1)

Publishing 70%

Net Sales- FY2007E(1)

Distribution 80%

Publishing 20% Growth of Publishing segment net sales driving margin expansion and profitability

Publishing net sales CAGR of approx. 80%(2)

Distribution net sales CAGR of approx. 17%(2)

Continued net sales growth opportunities in Publishing and Distribution segments

Consolidated gross margin has increased from 12.7% in FY03 to 16.8% in FY07 Q3

Publishing gross margin of 39.7%(3)

Distribution gross margin of 10.7%(3)

Consolidated EBITDA CAGR of approx. 53%

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Dollars in Thousands FY2004 FY2005 FY2006 12/31/05 12/31/06

Publishing Net Sales $46,177 $95,777 $127,612 $93,849 $95,789Income from Operations (1,874) 14,006 12,862 7,466 11,314

Summary Publishing Segment Financial Information

9 Months Ending,

Publishing and Licensing - First Party ContentOur strategy is to aggressively pursue the licensing and/or acquisition of PC software, audio, video and video game contentWe brand, market and sell to: physical and electronic retailers,third-party distributors and direct to consumer

Leverage assets and strength of Distribution business to provide:Broader retail penetration, material handling expertise, cost efficiencies

Successful operational integration of Encore, BCI and FUNimationPublishing focuses on content acquisition and development

(1) Includes $5.6 million impairment charge recorded in association with production development costs(2) Includes $3.7 million write-off related to Musicland bankruptcy(3) Before Inter-Company Eliminations

(2)(1)

(3)

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- Overview

Seventh largest publisher of PC unit sales at retail in North America(1)

Market share leadership in Home Publishing, Education, Card Games and PC Casino Games

Organic growth opportunities through exclusive publishing rightsBroderbund (Printshop, Adventure Workshop), Hoyle Casino Games, PC Tools (Spyware Doctor)

License PC software with high consumer brand recognition Take over retail sales and marketing of partner’s contentLimited content development risk

Strong New releases schedule focused on Utility and PC Gaming softwareAdditional products from PC ToolsMonopoly Here & NowAdvantage 2007Adventure Workshop 7th Edition

Future growth opportunitiesHasbro agreement to publish PC version of popular board games Other content acquisition opportunitiesESD (Electronic Software Distribution)

(1) Source: NPD, March 2006 North America PC Software Sales at Retail

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Developer, licensor, packager and marketer of video and audio entertainment productsPortfolio includes exclusively licensed titles, in-house produced CDs and DVDs and specialty TV programming

Exclusive 5-year publishing agreement with FremantleMedia• American, British and Australian television series and films

including The Price Is Right, Family Feud, The IT Crowd, Neighbours, Prehistoric Park and The Bill

Agreement with Entertainment Rights• He-Man, She-Ra: Princess of Power, The Legend of Bravestarr;

Ghostbusters; The New Adventures of Zorro; and The Lone Ranger

Future growth opportunitiesContent acquisitionDigital downloadsLatino and Spanish language products

- Overview

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Leading licensor of Japanese animation (Anime)Industry leading 23.2%(1) of Anime home video market share in U.S.Anime is one of the fastest growing segments of home video industry and US publishing industry

Three primary revenue streamsDVD home video, Out bound licensing (toys, video games, trading cards, etc.), and TV broadcast

Strong Broadcast/Cable TV presence – key driver of DVD sales and licensing

Developed FUNimation Channel to control TV destiny - Currently Available to over 34 million households19 titles on TV

(2)– Cartoon Network, PBS Kids, Disney Channel, Nick Toons, IFC

Upcoming releases include Afro Samurai featuring Samuel L. Jackson, Basilisk, Beck, Trinity Blood, Samurai 7, etc.Strong brand management

Internet marketing power with 100 million hits per month – strong connection with Anime fan community

Launch of animeOnline.comSocial networking site for Anime fans

Digital distribution of anime titles

- Overview

(1) Source: Nielsen VideoScan as of 12/31/2006(2) As of 12/31/200611

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Distribution Services

Leading edge distribution services and procurement solutionsCustomized procurement and sales programs using a broad assortment of home entertainment products

Services offerings including customized marketing programs, shelf-ready merchandise, cross docking with assumed receipt, pallet programs, etc.

Broad product offeringAccess to leading content

Comprehensive array of home entertainment, multimedia products to address retail customers’ needs –only single source

Leverage Strategic relationships with leading retailersBest Buy, Wal-Mart/Sam’s, Costco, Staples, Target Circuit City, Apple Store, etc.Dedicated strategic account management teams to manage all aspects of customer requirements

State-of-the-art distribution facility Capacity to grow revenues beyond $1 billion

Continue to meet and drive retail partners technology requirementsVMIRFID

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Top Retail Customers (1)

(1) As of LTM 12/31/06

Other33%

Best Buy19% Circuit City

8%

Costco Wholesale6%

Fry’s Electronics6%

Comp USA5%

Staples6%

Wal-Mart12%

Target3%

Office Depot

3%

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Top Vendors (1)

(1) As of LTM 12/31/06

All Other54%

Encore7%Roxio

3%

Symantec13%

WebrootSoftware

5%

Trend Micro

3%

FUNimation2%

BCI2%

Sony2%

Square Enix2%

Adobe6%

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Digital Distribution Strategy

Leveraging relationships with retail and supply partners to drive digital business opportunities

Strategically positioned to offer both First and Third party content – Digital AggregationDigital content offerings currently include music and videoDigital software distribution (ESD) to retail partners in development

Provide retail partners with First and Third party digital contentOnline Retail Partners - iTunes, eMusic, Napster, Yahoo, AOLTraditional Retail Partners

Developing relationship with new media partners Wireless/MobileInternet interactive

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1616

1717

1818

Digital right for independent music labels, DVD video, software and Anime

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Summary Financial Information(1)

(1) Fiscal year 2006 includes $12.7 million write-off related to Musicland bankruptcy and $4.1 million write-off of balances related to an independent music label.

2003 2004 2005 2006 12/31/2005 12/31/2006

Net Sales $359.4 $470.9 $596.6 $686.1 $514.3 $529.7Gross Profit 45.0 58.0 91.2 107.1 81.5 91.3Operating Income 3.6 7.1 9.5 2.7 (1.5) 16.4EBITDA 5.8 8.2 13.0 14.5 9.0 24.1Net Income (loss) 3.9 6.8 10.2 (3.2) (4.2) 6.3

Margin Analysis (% of Sales)Gross Margin 12.5% 12.3% 15.3% 15.6% 15.8% 17.2%Operating Expense 11.5% 10.7% 13.3% 15.2% 16.1% 14.1%Operating Margin 1.0% 1.6% 2.0% 0.0% 0.0% 3.1%Net Margin 1.1% 1.5% 2.1% 0.0% 0.0% 1.2%

Growth Analysis (Yr/Yr)Net Sales 18.3% 31.0% 26.7% 15.0% 3.0%Gross Profit 36.8% 28.9% 57.2% 17.4% 12.0%Income from Operations 620.0% 97.2% 33.8% -71.6% 1193.3%EBITDA 31.8% 41.4% 58.5% 11.5% 167.8%Net Income (Loss) 44.4% 74.4% 50.0% -131.4% 250.0%

Dollars in Millions

Net Cash from Operations 1,288 8,957 (2,505) (7,305) (16,919) 5,735 Net Cash from Investing (9,233) (16,699) (3,670) (91,032) (100,323) (5,679) Net Cash from Financing (536) 11,752 7,251 97,062 116,072 (3,620) Net Cash Flow (8,481) 4,010 1,076 (1,275) (1,170) (3,564)

Net Debt - - - (65.8) (103.1) (65.7)

Dollars in Thousands

Year Ended March 31, 9 Months Ending,

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Summary

Proven growth strategy – transform Navarre into a Publisher and Licensor of entertainment media

Growth opportunities in Publishing and Distribution – organic and through acquisitionsDemonstrated financial growth in both revenues and EBITDA

Implementation of digital strategy

Significant valuation discount to peer group