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Funimation Awarded Rights to Full Metal Panic: The Secon Raid

FUNimation Entertainment Awarded Rights to Full Metal Panic! The Second Raid by Kadokawa Pictures USA ***
-- Volume 1 DVD set to street on October 3 --

FORT WORTH, TX -- May 26, 2006 -- FUNimation Entertainment, a wholly-owned subsidiary of Navarre Corporation, announced that it has been awarded Full Metal Panic! The Second Raid by Kadokawa Pictures USA. Full Metal Panic! The Second Raid is the third season in this popular anime series and FUNimation has scheduled October 3, 2006 as the street date for the first DVD.

"We are excited to work with Kadokawa Pictures USA on this series," said Gen Fukunaga, president and CEO of FUNimation Entertainment. "These are the first steps in a mutually beneficial relationship and releasing Full Metal Panic! The Second Raid, with its high quality production values and established fanbase, is a great way to start."

"We are very excited to collaborate with FUNimation in releasing Full Metal
Panic: The Second Raid, which marks Kadokawa Pictures USA's first North American DVD release. We have found FUNimation to have a well thought-out sales strategy and an incredible management and support team. Their passion to distribute and promote this title was remarkable, and we look forward to working with them again in the future," said Takashi Sakuda, General Manager of Kadokawa Pictures USA, Inc.

The first Full Metal Panic! The Second Raid DVD and starter sets have been scheduled for release on October 3, 2006.

About FUNimation Entertainment
FUNimation® Entertainment, a wholly-owned subsidiary of Navarre Corporation (NASDAQ: NAVR), is a brand management company and one of the nation's leading independent home video entertainment companies. The company's most recent initiative is the FUNimation ChannelSM, a new, 24-hour digital network featuring programming from the top anime brands in the United States. FUNimation has a proven formula for launching and advancing brands, and manages a full spectrum of rights for most of its brands including broadcasting, licensing, production, internet, and home video sales and distribution. For images, or more information on FUNimation Entertainment, the FUNimation Channel, or any of FUNimation's properties, contact Jeff Dronen at 817-788-0627, ext. 251 or jeff.dronen@funimation.com.

About Kadokawa Pictures USA
Kadokawa Pictures USA is the Los Angeles-based arm of international multimedia empire Kadokawa Holdings, Inc. which includes: Kadokawa Shoten Publishing, one of the largest publishers in Japan; distributor and production company Kadokawa Herald Pictures and Kadokawa Daiei Film Studios.


Remakes from the Kadokawa library include the successful "THE RING"
franchise and smash hit "THE GRUDGE", as well as "SHALL WE DANCE?,"
"DARK WATER" and the upcoming "PULSE".

Kadokawa publishes over 100 fiction titles a month; is one of the largest publisher of Manga (comics) in Japan; produces and finances up to seven new films a year; as well as creating video games for distribution throughout Pan Asia.


In addition, Kadokawa produces up to ten animated projects a year, including TV series, OVAs and animated films.

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