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REALNETWORKS LAUNCHES FIRST EUROPEAN MUSIC DISCOVERY AND ENTERTAINMENT SERVICE WITH REALMUSIC

Service offers localised music and entertainment content in France, Germany, Italy, Spain and The Netherlands

LONDON — May 3, 2006 — RealNetworks (NASDAQ: RNWK) today announced the pan-European launch of RealMusic, a new online music service that gives subscribers instant, easy access to a vast array of music and entertainment content and functionality, including artist-radio, music videos, ringtones and user-generated music. This follows on from the successful UK debut of RealMusic in December 2005. A one-stop browser-based service, RealMusic's European editions give fans a simple way to search, discover and enjoy music in an environment tailored for each individual market.

RealMusic subscribers will have instant access to more than 300 CD-quality, ad-free radio stations, mixed by Real's global team of music editors, with stations to suit each country including La Belle France, Deutsche HipHop Allstars, Grandi Successi Italiani, 50 Exitos De Hoy, De Nederlandse Chart and Eurochart.

In addition to a deep selection of localised multi-genre stations, RealMusic includes artist radio which features the best music from top artists and like-minded performers.

"The European music industry is characterised by a rich mélange of local and international talent, famous and unknown alike," said Gabriel Levy, Head of Music, RealNetworks Europe. "RealMusic is the first comprehensive music service to embrace the diversity of European listening habits and to give users a simple way to listen to the music they love while discovering new, unfamiliar artists and songs."

Bringing together the best in music content, the service also provides on-demand access to thousands of music videos from artists past and present.

Unlike any other European music service, RealMusic features a chart of top-ranking downloads and ringtones created, submitted, and rated by users themselves. RealMusic is an ideal forum for unsigned talent to promote, share and sell their music to new audiences.

Recognising the demand for a more personalised and interactive approach to music consumption, RealMusic incorporates advanced search technology that allows subscribers to explore thousands of Internet radio stations from around the world, categorised by language, country or genre. RealMusic users are able to tailor the service to their own particular tastes by saving favourite radio stations, videos and genres with the easy-to-use "add to My Favourites" button. The "Tell A Friend" feature lets fans send the music they love to somebody else with one click.

All of these features are supported by extensive editorial from RealMusic's global music team, providing background and biographical information on artists, music and videos. RealMusic differentiates itself from other digital music services by being market-focused and locally driven. Real's team of European editors have created a service that stands apart from existing offerings in terms of both content and presentation. In addition to this, the product is easily adaptable for distribution by a third party partner such as an ISP or internet portal.

"Music is a major part of Real's strategy in Europe as we look to launch further compelling consumer entertainment services," said Marco Menato, Vice President EMEA, RealNetworks. "Our local expertise and product teams are key factors in the success of subscriber take-up as products are brought to market. Not only will RealMusic be a service built around our key European markets, but it will also be a significant revenue source as the flagship music product in Real's European portfolio."

Notes to editors:
- A subscription to RealMusic costs €11.99 per month.
- RealNetworks' TonePass ringtone subscription service is available through RealMusic at an additional cost of €4.99 per month.
- Users can access RealMusic through Internet Explorer or Mozilla Firefox on both PC and Mac or through the RealPlayer.
- Current RadioPass subscribers in Europe will automatically be upgraded to RealMusic at no extra cost. A 14-day free trial of RealMusic is available for new users at http://realmusic.real.com.

Media Contacts:
- Karla Geci, Real — +44 207 618 4029
kgeci@real.com
- Lewis Webb, AxiCom, for Real — +44 208 392 4065
lewis.webb@axicom.com

ABOUT REALNETWORKS, INC.
RealNetworks, Inc. is the leading creator of digital media services and software including Rhapsody®, RealPlayer 10, and casual PC-based games. With more than one million subscribers, the company is the market leader in premium music subscription services. 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/company.

RealNetworks, Mr.Goodliving and RealArcade 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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