Punch! Software  logo
has been acquired by
Encore logo
May 2010

Navarre Corporation Announces Encore's Acquisition of Punch! Software
May 2010

MINNEAPOLIS, May 17, 2010 -- Navarre Corporation, a publisher and leading distributor of computer software, home entertainment media and related products, announced that Encore Software, Inc., its wholly-owned subsidiary, has acquired Punch! Software, a Kansas City, Missouri-based provider of home design and CAD software solutions. Signal Hill acted as sole financial advisor to Punch! Software in this transaction.

Under the terms of the transaction, Encore acquired substantially all assets of Punch! Encore expects that the transaction will be accretive to its financial results during the current fiscal year.

"The Punch! acquisition fits perfectly into Encore's consumer software distribution model as this product line has no overlap with other titles in Encore's portfolio. The Punch! assets and certain of its personnel will be immediately integrated into Encore providing solid efficiency gains," said Cary Deacon, Chief Executive Officer of Navarre Corporation.

"We have a great understanding of the Punch! product line as Navarre Distribution Services has been distributing these products for many years and Encore has previously licensed and sold Punch! content. Additionally, we expect Encore to benefit from an expanded set of distribution partners, both internationally and domestically, that have carried the Punch! titles into their markets," Deacon continued.

Punch! has sold more than three million units of software since it was founded in 1998 and has been the best-selling home and landscape design retail software brand in the United States for more than 10 years. Home and landscape design titles include Home Design Suite(TM) and Home and Landscape Design Studio(TM) which are built on its industry-leading NexGen(TM) technology. Punch! also develops and sells 2D and 3D Computer Aided Design (CAD) products under the ViaCad(TM) and Shark(TM) brands.

"The Encore team is extremely excited to be supporting the Punch! home design and CAD communities of end users and business partners. Our team will continue to be focused on providing highly productive, but affordable, software that appeals to 3D design hobbyists and professional users," said Cal Morrell, President of Encore Software, Inc.

Punch! customers can expect to see exciting new product introductions and upgrades to their favorite design tools and will continue to be invited to participate in development efforts through forum engagements and beta testing. Punch! business partners will also benefit from Encore's expansive channel sales support resources.

About Updata Advisors

Based in New York and Reston, Virginia, Updata Advisors is a leading investment bank specializing in mergers, acquisitions, private placements, fairness opinions and corporate restructurings for the information technology industry. Updata creates Greater Outcomes? for clients measured in growth, innovation and shareholder value. Since 1987, the firm has advised on over $15 billion in transactions for application and infrastructure software, internet, security and IT services companies. Updata Advisors is perennially ranked among the top five advisors in transaction volume to companies in the Computer Software, Supplies & Services industry, according to FactSet Mergerstat. For more information, visit www.updataadvisors.com

About Encore Software, Inc.

Based in Los Angeles, CA, Encore Software, Inc. is a wholly-owned subsidiary of Navarre Corporation and a leading retail software publisher. As a result of strategic licensing agreements, the company publishes a broad range of award-winning utility, entertainment, education and productivity software titles. Publishing brands include Hoyle(R), Advantage(TM), Wheel of Fortune(R) and Jeopardy!(R); The Print Shop(R), PrintMaster(R) and Mavis Beacon Teaches Typing(R). Many of these products and others are available at www.broderbund.com, www.encore.com, www.hoylegaming.com and www.bicyclecardgames.com.

About Navarre Corporation

Navarre(R) Corporation is a publisher and distributor of computer software, home entertainment media and related products. The company publishes computer software in its Encore(R) subsidiary and produces anime video through its FUNimation Entertainment(R) subsidiary. Navarre Distribution Services provides complete distribution and third-party logistics (3PL) services to North American retailers and their suppliers. Navarre was founded in 1983 and is headquartered in Minneapolis, Minnesota. Additional information can be found at www.navarre.com.