REALNETWORKS MERGES REALPLAYER AND MUSIC SERVICES TEAMS INTO SINGLE BUSINESS UNIT

Real Executive Robert Acker To Lead RealPlayer and Music Division

SEATTLE, September 23, 2004 — RealNetworks®, Inc. (Nasdaq: RNWK), the leading creator of digital media services and software, today announced it will integrate its RealPlayer® and Music Services businesses into a single unit under the direction of technology and entertainment veteran Robert Acker, who currently serves as Vice President of the company’s RealPlayer Business. The move will unite the teams that develop and build the company’s world-class music and video products and services, including RealPlayer, the RealPlayer Music Store, RadioPass, and the award-winning Rhapsodyä service, within a single division.

The integration of the business units comes on the heels of the most successful music promotion in the company’s history, which resulted in consumers purchasing more than 3 million songs in just over three weeks. The 49-cent-per-song music promotion was launched to promote RealNetworks’ new Harmony technology, which enables consumers to enjoy their downloads on more than 100 portable devices, including all models of Apple Computer’s iPod.

"Over the next year we believe it’s critical to adopt a holistic approach that tightly integrates our player and music businesses, especially as we begin developing a new version of Rhapsody that includes Harmony technology," said Rob Glaser, CEO and founder of RealNetworks. "Robert Acker brings a unique set of business and technology skills to the table, and we look forward to his skilled management of this important part of our business."

The RealPlayer will continue to be used as a vehicle for delivering more than music, including key video services from Real such as SuperPass and Starz! Ticket on Real Movies and services from content partners, such as ABCNews.com and the NFL.

Acker, a founding member of the XM Satellite Radio team, was named Vice President of RealPlayer Business earlier this year. In addition to holding an MBA from Harvard, Acker also holds Bachelors and Masters degrees in engineering from MIT. While at XM, he directed all aspects of the company’s development of the world’s first consumer satellite radios. Mr. Acker will continue to report to Richard Wolpert, Real’s Chief Strategy Officer.

Sean Ryan, currently Real’s Vice President of Music Services, will leave the company this month to pursue other business opportunities. Ryan, the former chief executive officer of Listen.com, helped guide RealNetworks’ acquisition of the San Francisco-based digital music start-up and its Rhapsody service and the successful integration of the Listen.com into RealNetworks.

Real also announced that Niranjan Nagar has been named General Manager of Music Services. Nagar was a key member of the original Listen.com executive team. Since Real acquired Listen.com, Nagar has guided product development as General Manager of Engineering within Real’s Music Services division. He will report directly to Acker and oversee day-to-day operations at the RealPlayer Music Store, as well as RealRhapsody, the industry’s leading Internet jukebox service.

"I would like to personally thank Sean for his hard work over the last year helping integrate Rhapsody into RealNetworks, as well as the four years prior to that," said Glaser. "In the 15 months since announcing the Listen.com acquisition, the Rhapsody subscriber base has increased almost tenfold. We have tremendous confidence in Niranjan’s ability to continue building on our music business’s strong foundation and momentum."

For More Information, Press Only:
Matt Graves, RealNetworks, 415-934-2159, mgraves@real.com

ABOUT REALNETWORKS, INC.
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' corporate information is located at http://www.realnetworks.com

FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements that involve risks and uncertainties, including statements relating to: (a) the future release of Harmony technology with other RealNetworks products, including Rhapsody subscription services; (b) RealNetworks’ ability to successfully integrate its RealPlayer and Music businesses. Actual results may differ materially from the results predicted. Factors that could cause actual results to differ from the results predicted include: development and consumer acceptance of legal online music distribution services; the success of the integration of the RealPlayer and music businesses and teams; risks associated with the sustained adoption and use of RealNetworks’ services by customers; the emergence of new entrants and competition in the market for digital music content; competitive risks, including competing technologies, products and services, and the competitive activities of our larger competitors, some of which have strong ties to streaming media users through other products. More information about potential risk factors that could affect RealNetworks’ business and financial results is included in RealNetworks’ annual report on Form 10-K for the year ended December 31, 2003, and its quarterly reports on Form 10-Q and from time to time in other reports filed by RealNetworks with the Securities and Exchange Commission.

RealNetworks, Rhapsody, RealPlayer, and the Real logo are trademarks or registered trademarks of RealNetworks, Inc. Other companies or products listed herein are trademarks or registered trademarks of their respective owners.