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REALNETWORKS AND KEVIN KERSLAKE'S GIGANTIC ENTERTAINMENT TO BRING ORIGINAL VIDEO MUSIC SERIES "THE NEXT" TO LIFE

RealOne Guide Now Features Original, Exclusive Music Programming; "The Next" Takes Advantage of Intel Hyper-Threading Technology Available on High-Performance PCs

SEATTLE, January 29, 2003 — RealNetworks®, Inc., (Nasdaq: RNWK), the global leader in Internet media delivery, in conjunction with GIGANTIC Entertainment announced this week they will launch the first installment of an original five-episode video music series titled The Next, directed by renowned director Kevin Kerslake. The Next showcases cutting-edge artists on the rise in 2003, a who's who of the future music scene already generating buzz among critics and fans alike.

Each episode of The Next features exclusive live performances from one handpicked artist, with new episodes premiering every two weeks, available only in RealVideo® format and viewed exclusively with the RealOne™ Player at no cost. The debut of The Next coincides with the re-launch of RealNetworks' RealOne Guide (http://guide.real.com), which helps users discover the latest and greatest audio and video programming on the Web. Music lovers will find The Next in the newly revamped Music section of the RealOne Guide.

Kerslake forged a long and successful career directing music videos and working with artists, including Sonic Youth, The Rolling Stones, Stone Temple Pilots, Red Hot Chili Peppers and Green Day. His collaborations with Nirvana earned him a MTV Video Music Award for Best Alternative Video in 1992. Kerslake was honored again in 1996 with the MTV Video Music Viewer's Choice Award for his work on "Glycerine", a major hit from post-Nirvana U.K. import Bush.

Always on the cutting edge and pushing innovation, Kerslake and his company GIGANTIC Entertainment join RealNetworks to debut the new online music program The Next. RealNetworks has optimized the RealOne Player and RealVideo to take advantage of the Intel Pentium 4 Processor supporting Hyper-Threading Technology. Available on new PCs based on the IntelŪ PentiumŪ 4 processor 3.06 GHz, HT Technology allows users to multi-task. For example, users may send e-mail while listening to MP3 music, manage personal finances while catching a video news clip online, or in this case, learn more about a hot new artist while watching them perform live exclusively through The Next. See http://www.intel.com/homepage/land/hyperthreading.htm for further information.

"The MTV revolution that was ignited by the music video is now beginning an era of discovering music and entertainment elsewhere besides television. The lines have been blurred and we need to explore the new boundaries," said Kevin Kerslake, founder of GIGANTIC Entertainment. "We are thrilled to work with RealNetworks and Intel to introduce a new generation of musicians, while utilizing state-of-the-art technology and the superior media player, RealOne Player."

"We are delighted to help music fans discover intriguing new artists through unique live performances while showcasing the best video experience available on the Internet through the RealOne Player," said Erik Flannigan, Vice President of Music Services and Programming, RealNetworks, Inc. "For us, today's announcement marks a great step forward in the growing relationship between music and technology. And with the re-launch of the RealOne Guide, we're bringing The Next not just to our paying subscribers but also to the Web at large. We are excited to continue raising the bar for quality digital distribution and innovation, in order to take it to the next level."

"The Next" — On the cusp of greatness
The Next features sessions of live performances from musicians who are about to change the face of the music scene and reinvent what audiences consider mainstream. Starting today, with new artists introduced every two weeks, dedicated fans can watch live concerts, learn more about each rising artist, and even purchase CDs through links offered in the RealOne Player or by visiting http://music.real.com/thenext. The Next is proud to present:
- January 29, 2003 — Blackalicious: These creative hip-hop innovators seamlessly blend lyrical funk and unique rhymes into a winning mix of unforgettable hip-hop tunes.
- February 12, 2003 — Kinky: This acclaimed Grammy-nominated, five-piece band blends traditional rock, Latin rhythms and electronic beats, creating an electrifying hybrid that works especially well live.
- February 26, 2003 — Beth Orton: With her signature blend of haunting vocals, heartbreaking lyrics, and ethereal melodies, this British singer/songwriter blends folk sensibilities with electronic and dance beats for an utterly original sound.
- March 12, 2003 — Zero 7: This London-based producer duo started out remixing artists like Radiohead and Sneaker Pimps, then made their own mark with the Mercury Prize-nominated CD Simple Things.
- March 26, 2003 — Pete Yorn: The talented singer/songwriter got his big break from gross-out directing duo, the Farrelly Brothers, when he contributed to the soundtrack for Me, Myself and Irene. This led to his phenomenal debut CD, musicforthemorningafter, which includes hits like "Life on a Chain" and "Strange Condition."

The Next Level — You'll never go back
RealNetworks will provide the exclusive streaming video of each concert through the RealOne Player at several connection speeds to accommodate both narrow and broadband users. For the ultimate digital media experience available anywhere online, RealNetworks will also introduce The Next with a bonus viewing option called "The Next Level," which offers T1 and high-speed cable modem viewers an enhanced 500K stream for the highest video quality in the RealOne Player full-screen theater mode.

About GIGANTIC Entertainment
GIGANTIC is a media and entertainment company positioned at the intersection of entertainment, technology and marketing. Our business model leverages our collective strengths and relationships in directing, marketing, and technology to create marketing-driven programming.

Focused mainly on the twin themes of cutting-edge music and action sports, the two most prominent lifestyle-defining themes of the 18-34 demographic, GIGANTIC creates multi-platform media properties that mirror this demographic's splintered media diet.

With each property anchored in TV and/or film, additional extensions include live events and tours, video games and Internet/wireless. For corporate clients and sponsors, this multi-pronged approach delivers a large audience brand-awareness through the robust mediums of TV and feature films; delivers hands-on connection to brands via live events; delivers a feedback relationship with the audience via on-line; and, finally, given the propensity for this audience to spend 4+ hours a day video gaming, this element delivers long-time onscreen branding.

About RealOne Player
RealOne Player includes a ground-breaking technology that enables near-instant playback of audio and video content, with full-screen theatre mode, DVD playback support, MP3 support, full speed CD burning support and access to 1700 radio stations. RealOne Player Plus, the premium version of the RealOne Player, includes universal playback of Windows Media and QuickTime MPEG4 as well as over 50 additional media types, along with a premium host of advanced features.

About RealNetworks
RealNetworks, Inc. is the global leader in Internet media delivery. It develops and markets software products and services designed to enable users of personal computers and other consumer electronic devices to send and receive audio, video and other multimedia services using the Web. Consumers can access and experience audio/video programming and download RealNetworks' consumer software on the Internet at: http://www.real.com. RealNetworks' systems and corporate information is located on the Internet at http://www.realnetworks.com.

RealNetworks, RealOne, and RealVideo are trademarks or registered trademarks of RealNetworks, Inc. Intel and Pentium are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries. All other trademarks are the property of their respective owners.

Hyper-Threading Technology requires a computer system with an Intel Pentium 4 processor at 3.06 GHz or higher, a chipset and BIOS that utilize this technology, and an operating system that includes optimizations for this technology. Performance will vary depending on the specific hardware and software you use. See www.intel.com/info/hyperthreading for information.

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