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RealNetworks Expands Leadership in Online Music With More Than One Million Subscribers

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SEATTLE, WA. (RealNetworks) - RealNetworks, Inc, the leading creator of digital media services and software, announced today that it now has more than one million subscribers toits premium subscription music services, including its award-winning Rhapsody service and commercial-free Internet radio services.
"We've now crossed a critical mass milestone in digital music," said Rob Glaser, Chairman and CEO of RealNetworks. "By offering consumers the best way to get unlimited legal access to digital music, we have the No 1 digital music subscription business in America. Now, we're accelerating our growth by working with partners such as Comcast to make it really easy for consumers to get Rhapsody in entirely new ways."

In advance of the company's upcoming quarterly financial results conference call scheduled for May 4, 2005 at 2:00 PM (PDT), RealNetworks also announced today that total revenue for the first quarter of 2005 was approximately $76.6 million. This compares to the company's previous first quarter revenue guidance of $73 million to $74.5 million, and represents an approximately 27% increase from $60.4 million in total revenue for the first quarter of 2004. This result also represents a record quarter of revenue for RealNetworks.

The company indicated that this is the first quarter in which RealNetworks' music subscriber count includes subscribers from its new relationship with Comcast. Under its agreement with Comcast, RealNetworks sells premium music services on a wholesale basis to Comcast. Comcast then makes those services available to its broadband subscribers at no additional charge provided they register to receive Comcast Rhapsody Radio Plus.
Although Rhapsody Radio Plus is available to all Comcast broadband subscribers, RealNetworks only counts as subscribers those Comcast customers who register for the Rhapsody Radio Plus service. At the end of the first quarter of 2005, RealNetworks had more than 975,000 subscribers to its premium subscription music services including Comcast Rhapsody Radio Plus registrations.

Upcoming Events
Last week, RealNetworks announced that it will hold a press conference to unveil a revolutionary new initiative in digital music and a free concert featuring multi-platinum recording artists Good Charlotte at New York City's Radio City Music Hall on April 26, 2005.
Additional information for these events can be found at https://www.realnetworks.com/company/press.
Additional details about the company's financial performance and subscriber figures will be discussed on Wednesday, May 4, 2005 when the company discloses results for the first quarter of 2005.






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