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BT AND REALNETWORKS PARTNERSHIP TO ACCELERATE GROWTH OF PREMIUM AUDIO AND VIDEO SERVICES

BT Licences Helix Universal Server and Helix Service Delivery Suite as Preferred Platform to Build Subscription Services

London, U.K. — April 07, 2004 — RealNetworks®, Inc. (Nasdaq: RNWK), the leading creator of digital media services and software, and BT Rich Media, today announced that BT Rich Media has licenced and implemented RealNetworks’ Helix® Universal Server and the Helix Service Delivery Suite as the platform to manage it’s multimedia content services, including: pay-per-view, video-on demand and music downloads. Additionally, BT Rich Media has selected and will promote RealAudio® 10 with AAC and RealVideo® 10 as it’s preferred media formats.

BT Rich Media is a new BT business unit focused on providing content owners ranging from individuals, to small businesses, to large corporate entities, with a robust and secure, digital media delivery platform for delivering their digital media content to the online market.

"Real was the obvious choice to power the BT Rich Media delivery platform," said Andy Brown, CEO of BT Rich Media. "Working with Real’s Helix platform has enabled us to introduce easy-to-use services to content providers throughout the U.K."

"By leveraging BT’s and RealNetworks’ combined relationships with leading media companies, we believe we will help accelerate the availability and growth of premium content services in the UK and beyond," said Frank Keeling, vice president Europe, Middle East and Latin America, RealNetworks, Inc. "With the Helix Universal Server and Service Delivery Suite, BT is now able to offer its customer with robust tools to rapidly bring new digital media content and services to market, which will be readily accessible to consumers via RealPlayer 10."

BT Rich Media has selected the Helix Service Delivery Suite (SDS) as the middleware used to negotiate between BT Rich Media’s existing billing, authentication and customer service systems, and the media delivery infrastructure. Using Helix SDS, BT Rich Media decreased the systems integration work required and thereby accelerated the launch of revenue generating content services.

BT Rich Media has also deployed RealNetworks’ Helix Universal Server to ensure its digital media delivery platform will enable BT Rich Media customers to quickly monetise the rapidly growing base of broadband users. Helix Universal Server enables the streaming of content across today’s narrow- and broadband networks.

Finally, BT Rich Media has chosen to deliver and promote content delivery in RealNetworks latest codecs, RealAudio 10 and RealVideo 10. The RealAudio 10 codec includes support for the AAC codec for use in CD ripping and music downloads, RealAudio Multichannel for home theatre experiences, and RealAudio Lossless for audiophiles and professional archiving. RealVideo 10 offers a break-through improvement of 30% in efficiency over RealVideo 9, enabling DVD quality video at approximately 1 Megabit per second, and Hi Definition quality video at approximately 5 Megabits per second.

For More Information:
Lisa Strong, RealNetworks, 206-892-6585, lstrong@real.com

ABOUT REALNETWORKS
RealNetworks, Inc. is the leading creator of digital media services and software including the award-winning Rhapsody® Internet jukebox service and RealPlayer 10, the first product to integrate finding, organizing, buying, playing and managing digital audio and video in a single product. Consumers can access and experience audio/video programming and download RealNetworks’ consumer software at http://www.real.com. Broadcasters, network operators, media companies and enterprises use RealNetworks’ products and services to create and deliver digital media to PCs, mobile phones and consumer electronics devices. RealNetworks’ systems and corporate information is located at http://www.realnetworks.com.

RealNetworks, RealAudio, RealVideo, Rhapsody and RealPlayer are trademarks or registered trademarks of RealNetworks, Inc. All other companies or products listed herein are trademarks or registered trademarks of their respective owners.

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