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RealNetworks continues European expansion of RealArcade and Zylom casual games with distribution to leading media companies

Casual gaming deals inked with three of Germany's leading ISP's and portals
[This unedited press release is made available courtesy of Game Developer and its partnership with notable game PR-related resource Games Press]

Düsseldorf - July 26, 2006 - RealNetworks (NASDAQ: RNWK), the leader in downloadable PC-based casual games, today announced three new distribution deals that considerably expand its casual games business in Europe. T-Online, part of Deutsche Telekom, and the largest internet service provider in Germany; freenet.de, a premium internet service provider within the German market; and RTL.de part of RTL Group, Europe's leading TV corporation will provide users and subscribers with RealArcade/Zylom games through each companies' online web portals.

Casual gaming is the fastest growing segment in the PC game market with revenues expected to exceed 225 million by 2008*. Germany is currently the biggest PC game market and is expected to continue that dominance.

"The European market has really adopted casual gaming, and these partnerships underline its significance to a broader audience", said Rutger Peters, Area Vice President Games EMEA, RealNetworks. "Germany is an extremely important market for us, and partnering with T-Online, freenet.de and RTL shows our commitment to this market. Zylom and RealArcade provide European partners with hundreds of casual game titles with broad appeal, ease of gameplay, local language game titles, and exceptional value for their customers."

The renewed partnership with RTL.de will focus on integrating the Zylom games into its internet portal; the service will be promoted with ads on RTL Television to broaden the user base.

"Working with Zylom/RealArcade fits well with our strategy" says Thomas Sonntag, Deputy Managing Director, RTL online. "Having access to unique content with good terms means that we can provide the best service to our clients whilst satisfying our business needs."

T-Online, which has over 15 million subscribers, will be distributing online games through its OnSpiele portal, whilst concentrating on www.Gamesload.de for distribution of the premium download content.

Renate Grof, Senior Manager, Product Marketing Content, T-Online says, "The thing that really appealed to us was Zylom's focus on delivering localised games, as one of the biggest players on the German market we feel that this is crucial for our customer proposition."

freenet.de is a premium internet service provider within the German market and has linked up with Zylom to provide its users with a premium casual gaming experience.

Gregor Poniewasz, General Manager, freenet.de comments, "Integrating casual games is a vital part of our entertainment strategy for the future. Games are no longer a marginal interest, and in order for us to provide an overall perspective, casual games are an important part of this, hence our relationship with Zylom."

These partnerships bolster RealArcade/Zylom's status as the leading casual web and PC game provider in Europe. With hundreds of downloadable and web-based games, and a unique subscription service, RealArcade/Zylom holds a strong position as a partner for portals and ISPs looking for casual game content.

Notes to Editors:

*Source: Juniper Research Jan 2005.

For more information, contact:

Karla Geci, RealNetworks: +44 207 618 4029, [email protected]

Lewis Webb, AxiCom (for Real): +44 208 392 4065, [email protected]

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, Rhapsody, RealMusic, RealArcade, GameHouse, RealPlayer and RadioPass are trademarks or registered trademarks of RealNetworks, Inc. All other trademarks are the property of their respective owner

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