REALNETWORKS ANNOUNCES MORE THAN 450,000 SUBSCRIBERS FOR ITS DIGITAL MUSIC SERVICES, EXTENDING LEAD IN MUSIC SUBSCRIPTIONS

Music Subscriptions Grow by 100,000 in First Quarter, Up 80% in Last Two Quarters; Rhapsody Usage Experiences Double-Digit Growth for Tenth Consecutive Month

SEATTLE — April 15, 2004 — RealNetworks®, Inc. (NASDAQ: RNWK), the leading creator of digital media services and software, today announced that it added 100,000 paying subscribers for its premium digital music services during the company’s fiscal first quarter (ended March 31, 2004), pushing the total subscription count for its music services beyond 450,000. This is the second consecutive quarter the company has added 100,000 subscribers for its digital music services, including Rhapsody and RadioPass. Overall, the subscriber base for these services has grown by 80% since the end of Q3 2003.

RealNetworks also announced that usage of the industry-leading Rhapsody Internet jukebox service increased again in March, when subscribers streamed more than 56 million songs on-demand - a rate of more than 1.8 million songs a day, and an increase of more than 16% over usage during February. This is the tenth consecutive month of double-digit growth in consumer usage of Rhapsody. The announcements reinforce RealNetworks’ status as the industry leader in offering subscription-based online music services to consumers.

"Today's news is music to everyone’s ears," said Rob Glaser, founder and chief executive officer, RealNetworks. "We’re signing up thousands of new music subscribers every week, fans are streaming more music than ever through our online services, and Real has a commanding lead in the music subscription market."

RealNetworks’ digital music subscription services include RadioPass, a commercial free Internet radio service, and Rhapsody, the critically acclaimed on-demand music service. For $9.95 per month, Rhapsody delivers unlimited access to a broad library of major and independent label music, with more than 625,000 songs available for on-demand streaming and more than 550,000 songs available for purchase at the industry-low price of 79¢ per song. In addition to streaming any of the music as much as they want, Rhapsody subscribers can burn full albums or custom mix CDs, build their own custom Internet radio stations, listen to professionally programmed, commercial-free stations, and browse extensive music information and editorial recommendations to help them find more of the music they like.

For More Information:
Greg Chiemingo, RealNetworks, Inc., 206-892-6234, gchiemingo@real.com
Matt Graves, RealNetworks, Inc., 415-934-2159, mgraves@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.

Legal Notice Regarding Forward-Looking Statements: This release may contain forward-looking statements regarding RealNetworks' ability to sign up new music subscribers and their usage of the RealNetworks' music services. Actual results could differ materially from those projected in such forward-looking statements. Additional information concerning factors that could cause our actual results to differ materially from those contained in the forward-looking statements can be found in RealNetworks' filings with the Securities and Exchange Commission ("SEC"), including but not limited to the most recent reports on Forms 10-Q and 10-K, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. Copies of filings made with the SEC are available through the SEC's electronic data gather analysis and retrieval system (EDGAR) at www.sec.gov. RealNetworks assumes no obligation to update the forward-looking statements included in this document.