New Release Improves Production Capabilities and User Experience,
Introduces Powerful New Administration System

SEATTLE, WA, September 28, 1998 — RealNetworks, Inc. (NASDAQ "RNWK"), the recognized leader in streaming media, today announced the widespread availability of the second beta release of RealSystemä G2, the next-generation media delivery system for the Internet and corporate intranets. This is the first beta release of RealSystem G2 where the encoder and server are ready for production use and evaluation, and is available immediately for download at http://www.real.com. The beta 2 release of RealSystem G2 incorporates Intel's Web Streaming Video technology, providing content producers with a new level of performance and quality in streaming video production, while providing consumers with enhanced playback performance, smoother Web video, and better CPU scalability. Additionally, the end-user experience is further improved through a number of audio and video enhancements. Finally, content production efficiency is increased, and Web-based administration for network and server management is added. Also announced today, America Online will distribute RealPlayer G2 as the streaming media solution of choice with AOL 4.0 Gold, initially distributing the RealPlayer 5.0 and later the final version of RealPlayer G2.

Realplayer Plus G2

Benefits for Consumers and End-Users

Benefits for Consumers and End-Users Beta 2 of RealSystem G2 improves the user experience, with the following new features: RealPlayer users can now enjoy broadcast quality frame rates of up to 30 frames per second (fps). A new technology called FRU (frame rate upsampling) produces smoother video playback for Internet bitrates by increasing the frame rate without requiring additional bandwidth. Additionally, stereo and near-CD quality capabilities have been added to the G2 Music Codec.

"RealSystem G2 offers unparalleled abilities to deliver rich media experiences to our audience, and by using the improved video performance and SureStream we'll be able to reach an even wider audience," said Andy Sharpless, senior vice president for Interactive Media, Discovery Enterprises. "Additionally the dramatically increased production efficiencies of RealSystem G2 will allow us to produce much more content, including Live broadcasts, using our existing resources."

"Today's release of RealSystem G2 is evidence of our commitment to providing our customers with the highest quality streaming media experience available on the Internet and corporate Intranets today," said Len Jordan, senior vice president, Media Systems, RealNetworks, Inc. "We've been very pleased by the response to RealSystem G2 and expect today's announcement to only further accelerate its broad scale deployment."

Benefits for Broadcasters

Beta 2 of RealSystem G2 increases scalability and adds powerful network and server management with the following new features: The RealServer G2 now offers a completely Web-based administration and monitoring interface, which is extensible both through HTML and a server side API. Scalable multicasting has also been added, extending RealServer's existing multicasting support to allow broadcasting to an unlimited number of clients.