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2004 PRESS RELEASES
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2004

REALNETWORKS’ RHAPSODY USAGE JUMPS AS SERVICE MOVES FROM PC TO LIVING ROOM

Consumers played more than 38 million songs on-demand in December, up 15% from November and up more than 200% in last six months of 2003;
Library of songs grew to more than 450,000 in December

SEATTLE — January 9, 2004 — RealNetworks®, Inc. (NASDAQ: RNWK), the leading creator of digital media services and software, today announced that users of Rhapsody,® the #1 Internet jukebox service, played more than 38 million songs in December, a jump of more than 15% from November. Rhapsody usage has grown by double-digit percentages month over month for eight consecutive months and by more than 200% overall in the last six months. The number of songs available for on-demand play through Rhapsody passed 450,000 in December.

"Rhapsody users are continuing to play more than a million songs a day on-demand and are starting to enjoy their Rhapsody music in the living room thanks to new devices on the market like the Rockford Omnifi," said Sean Ryan, vice president of music services, RealNetworks. "The all-you-can-listen Rhapsody model has music fans enjoying and exploring more music every day and, with new devices coming to market, they’re listening to Rhapsody songs beyond the PC."

Rockford Corporation’s Omnifi is a stand-alone home audio receiver that enables consumers to stream music from their personal computers to their home stereo and home theater systems utilizing existing wired and/or wireless 802.11B home networks. In December, Rockford began shipping a new version of the Omnifi with Rhapsody support, giving customers the ability to enjoy the playlists, artists, albums, and Internet radio stations in their Rhapsody library in their living room and throughout their house.

Yesterday, PRISMIQ announced that its award-winning PRISMIQ entertainment gateway product line, led by the PRISMIQ Media Player, will include support to connect Rhapsody to home stereos and home theatres beginning next month. RealNetworks, PRISMIQ and the Rockford Corporation embrace the UPnP™ (Universal Plug and Play) standard to communicate and share information and media across consumers’ home networks.

Earlier this week RealNetworks launched RealPlayer 10 with an integrated music download store, sophisticated music management capabilities, and an extensive free music guide powered by the award-winning Rhapsody service. The RealPlayer Music Store is expected to include 400,000 songs for individual purchase available by the end of January 2004 in the highest quality of any download store: 192 Kbps RealAudio with AAC.

Rhapsody is the #1 Internet jukebox service and offers unlimited access to a vast library of major and independent label music, with more than 450,000 tracks available for on-demand streaming and more than 380,000 songs available for purchase at the industry-leading price of 79˘ for any track. In addition to burning full albums or custom mix CDs, Rhapsody subscribers can build their own custom Internet radio stations, listen to professionally programmed stations, and browse extensive music information and editorial recommendations. In 2003, Rhapsody received multiple awards and honors including PC Magazine’s Editors’ Choice Award and a PC World Best Buy Award. Rhapsody and RealNetworks’ RealOne® RadioPass™ service together had more than 350,000 subscribers as of the end of December 2003.

For More Information:
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.

RealNetworks, RealOne, Rhapsody and RadioPass are trademarks or registered trademarks of RealNetworks, Inc. All other trademarks are the property of their respective owners.

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