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2004

REALNETWORKS’ RHAPSODY USAGE JUMPS 10% IN JANUARY

Music Library Passes 500,000-Song Milestone; Customers Play More Than 42 Million Songs On-Demand

SEATTLE — February 3, 2004 — RealNetworks®, Inc. (NASDAQ: RNWK), the leading creator of digital media services and software, today announced that consumer usage of its award-winning Rhapsody Internet jukebox service jumped 10% in January, with customers streaming more than 42 million songs on-demand. The company also announced that in January the service’s library of music grew beyond 500,000 songs for the first time.

"Every day, partners like RollingStone.com are introducing more consumers to Rhapsody and helping them rediscover their passion for music," said Sean Ryan, vice president of music services, RealNetworks. "Rhapsody hands music fans the keys to the record store, letting them explore a library of more than 35,000 albums for less than $10 a month. It’s no surprise that interest in the service is continuing to grow."

Rhapsody is the #1 Internet jukebox service and offers unlimited access to a vast library of major and independent label music, with more than 500,000 tracks available for on-demand streaming and more than 425,000 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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