RealNetworks and Intel Collaborate to Deliver Enhanced Quality and Breakthrough Performance of Streaming Media on the Web

Intel's Technology in RealSystem G2 Provides Content Creators With a More Efficient Production System, and Consumers With a Better Viewing Experience

PALM SPRINGS, CA, Sept. 16, 1998 - RealNetworks, Inc. and Intel Corporation today announced an agreement to further accelerate broad-scale deployment of next-generation streaming media programming on the Internet and intranets. As part of the strategic agreement, RealNetworks has licensed and integrated Intel® Streaming Web Video software technology into RealSystem™ G2. In addition, Intel will work with RealNetworks to promote and market the technology to Web media authors. Intel Streaming Web Video software is an integral component of RealNetworks' RealVideo® G2, which will provide state-of-the-art production efficiencies for creating next-generation streaming video programming, and will deliver significant performance and quality improvements to consumers.

"Intel is continuously developing technologies to advance consumers' media and Internet experiences. Our agreement with RealNetworks is the latest instance of Intel working with industry leaders to speed the delivery of innovative technology to the marketplace," said Craig Kinnie, Intel vice president and director, Intel Architecture Labs. "The combination of Intel technology and RealNetworks' solutions will lower the barriers to widespread deployment of streaming media programming on the Web."

"We're pleased that Intel has chosen to join with RealNetworks to further accelerate rapid adoption of next-generation streaming media programming on the Web," said Len Jordan, senior vice president, Media Systems, RealNetworks, Inc. "The combination of Intel's compelling video software technology coupled with RealNetworks' media delivery system will provide tens of millions of RealPlayer users with new levels of streaming media quality."

"The timing of RealNetworks' implementation of Intel's latest technology in RealSystem G2 lends a significant edge to the upcoming launch of our online video channel, INSTAVID, enabling us to encode our content rapidly and economically while creating an improved quality experience for our users," said Atlantic Records' SVP of New Media, Karen Colamussi. "This combination is an important step in extending Atlantic's ability to make mainstream broadcasting possible on the Internet."

For broadcasters, the combination of Intel Streaming Web Video software and RealSystem G2 enables up to four times faster real-time video encoding than previous streaming media delivery systems (according to RealNetworks benchmark testing*). For example, where you previously needed several platforms to encode live video, this new technology, coupled with RealSystem G2 SureStream™, will create a single file that scales from 5 Kbps to 1 Mbps in real-time on a 400-Mhz Pentium® II processor-based system, while improving video performance and quality.** The combination of Intel Streaming Web Video software with RealSystem G2 streaming video capabilities will improve the decoding performance of streaming video, providing new levels of streaming media quality to the broadest range of personal computers. Next-generation (SMIL-based) programming will also benefit from RealNetworks' integration of Intel's technology by allowing the creation and playback of richer media presentations.

About RealSystem G2
RealSystem G2 enables the highest quality audio and video available on the Internet and corporate intranets today. A powerful new music Codec provides a higher level of sound quality for dial-up users, and new postfiltering capabilities create smoother video images. The new SureStream feature provides a consistent end-user experience across variable Internet connection speeds, improving the audio and video quality. The addition of two new media types, RealText™ and RealPix™, combined with support for Synchronized Multimedia Integration Language (SMIL), enables rich multi-stream programming to be delivered over typical modem connections. RealSystem G2 (beta 2), which incorporates Intel Streaming Web Video software, will be available within 30 days. Shipping versions of RealSystem 5.0 and the beta 1 release of RealSystem G2 are available at www.real.com.

About the Agreement
Under this strategic agreement, RealNetworks and Intel are joining forces to develop and promote rich media to the Internet development community. In addition, Intel has worked closely with RealNetworks to integrate Intel's technology into RealNetworks' products. The Intel software technology involved enables playback quality to scale up to the capability of the user's processor, and makes video encoding possible on a PC in real time. More information on the Intel software technology is available at developer.intel.com/ial/swv.

About RealNetworks
RealNetworks, Inc., (NASDAQ "RNWK"), based in Seattle, WA, is the recognized leader in the streaming media market. 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. RealNetworks can be found on the World Wide Web at www.real.com.

*Test unit is a 400 MHz Pentium® processor-based II system with 128 MB RAM running RealNetworks RealSystem G2 vs RealNetworks RealSystem 5.0 using sport video content. For more information, contact RealNetworks.

**Performance tests and ratings are measured using specific computer systems and/or components and reflect the approximate performance of RealNetworks' products as measured by those tests. Any difference in system hardware or software design or configuration may affect actual performance. Buyers should consult other sources of information to evaluate the performance of systems or components they are considering purchasing. For more information on performance tests and on the performance of RealNetworks products, contact RealNetworks.

* Other names and brands may be claimed as the property of others.