Sony Computer Entertainment and RealNetworks Form Strategic Alliance To Include RealPlayer on PlayStation®2

Sony Computer Entertainment Inc. (SCEI) and RealNetworks®, Inc. (NASDAQ: RNWK) today announced a strategic alliance to embed industry-leading RealPlayer® 8 and other RealNetworks client technologies on SCEI's PlayStation®2 computer entertainment system and the PlayStation 2 Software Development Kit (SDK). This integration will enable the more than 10 million users of PlayStation 2 to enjoy their favorite Internet media, including sports, breaking news and entertainment, through RealPlayer.

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"Our goal is to revolutionize the home entertainment market and even communication itself with PlayStation and PlayStation 2, the most prevailing entertainment platforms in the world," said Ken Kutaragi, CEO, Sony Computer Entertainment Inc. "Streaming media integration will vastly enrich the computer entertainment world PlayStation has built up to date. While envisioning the direct download of digital content from the network in the coming broadband era, we will obtain digital streaming and downloadable media using current networks, by integrating into PlayStation 2 the world's most popular Internet media delivery client, RealPlayer. As the world of gaming and the Internet merge, so too will entertainment and communication."

"Through this exciting collaboration with Sony Computer Entertainment, we will provide consumers the ability to enjoy their favorite Internet media through the most popular digital home entertainment platform in history," said Rob Glaser, chairman and CEO, RealNetworks, Inc. "One of RealNetworks' core objectives is to enable consumers to experience their favorite Internet media wherever and whenever they want, and our universal media delivery system allows us to provide this experience on any device and on any platform."

As a result of today's announcement, current and future PlayStation 2 owners can extend the use of their PlayStation 2 to enjoy a wide array of streaming and downloadable audio and video content, including more than 2500 Internet radio stations. With more than 200 million unique registered users worldwide, RealPlayer is the world's most popular media player and one of the most popular applications on the Internet. In addition, over 85 percent of web pages that feature streaming media use RealNetworks' format.

As part of this alliance, Dynamic Network Authentication System, a newly developed proprietary authentication system for PlayStation 2, developed by Sony Computer Entertainment will leverage RealNetworks' RealSystem iQ technologies to establish a highly-secured copy management system.

For game developers, this announcement means that they will be able to use the latest RealPlayer technology to revolutionize game design and architecture. Incorporating streaming media into games through the PlayStation 2 SDK will enhance the possibilities in creating games and provide new experiences to game players.

With PlayStation and PlayStation 2, Sony Computer Entertainment will create and develop a new world of computer entertainment for the broadband era through the fusion of game, music, movies, and broadcasting.

About Sony Computer Entertainment

Recognized as the global leader and company responsible for the progression of consumer-based computer entertainment, Sony Computer Entertainment Inc. (SCEI) manufacturers, distributes and markets the PlayStation® game console and PlayStation®2 computer entertainment system. SCEI, along with its subsidiary divisions Sony Computer Entertainment America Inc. and Sony Computer Entertainment Europe Ltd., develops, publishes, markets and distributes software, and manages the third party licensing programs for these two platforms in the respective markets worldwide. Headquartered in Tokyo, Japan, Sony Computer Entertainment Inc. is an independent business unit of Sony Group.

About RealNetworks

RealNetworks, Inc is the global leader in Internet media delivery. It develops and markets software products and services designed to enable users of personal computers and other consumer electronic devices to send and receive audio, video and other multimedia services using the Web. Consumers can access and experience audio/video programming and download RealNetworks' consumer software on the Internet at http://www.real.com/ . RealNetworks' systems and corporate information is located on the Internet at http://www.realnetworks.com/ .

NOTE: This press release contains forward-looking statements that involve risks and uncertainties, including those relating to RealNetworks' ability to develop and market wireless home-networking technologies. Actual results may differ materially from the results predicted. Factors that could cause actual results to differ from the results predicted include the risks associated with the development of new wireless technologies and the sustained adoption and use of RealNetworks technology by customers. More information about potential risk factors that could affect RealNetworks' business and financial results is included in RealNetworks' annual report on Form 10-K for the year ended December 31, 1999, and its quarterly report on Form 10-Q for the period ended September 30, 2000, and from time to time in other reports filed by RealNetworks with the Securities and Exchange Commission.

NOTE: PlayStation and the PlayStation logo, PS one and PS2 are registered trademarks of Sony Computer Entertainment Inc. All other trademarks are property of their respective owners.

RealNetworks, RealPlayer and RealJukebox are registered trademarks of RealNetworks, Inc.

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SOURCE: Sony Computer Entertainment America Inc.

Contact: Molly Smith of Sony Computer Entertainment America,
650-655-6044, or molly_smith@playstation.sony.com; or Joe Cerrell of
RealNetworks, 206-892-6821, or jcerrell@real.com

Website: http://www.real.com/

Website: http://www.realnetworks.com/

Website: http://www.playstation.com/