Press Release: June 29, 2000

WR Hambrecht + Co Initiates Coverage of RealNetworks, Inc. (RNWK) with a Buy Rating and a Target of $62

San Francisco, CA, June 29, 2000—WR Hambrecht + Co today initiated research coverage on RealNetworks, Inc. (RNWK) with a buy rating and a price target of $62. WR Hambrecht + Co’s eMedia analyst Bill Lennan cited RealNetwork’s high-quality revenue streams, including software (64%), services (20%), and advertising (16%) as key reasons for the rating. WR Hambrecht + Co offers all its research reports free and real-time at www.wrhambrecht.com.

“With 127 million registered RealPlayer users and 85% of Web content encoded in its formats, RealNetworks is the clear leader in both streaming media metrics,” Lennan said.

Lennan projects RealNetwork’s total revenues will reach $246 million in 2000 and $325 million in 2001, up from $131 million in 1999.

RealNetworks, Inc. provides software and services enabling the creation, serving, and playback of rich multimedia content on the Internet.