RealNetworks and Mattel Sign Multi-Year Agreement For Casual Games Development

RealNetworks to exclusively develop Scrabble® and UNO® downloadable PC game titles

SEATTLE (Casual Connect) — July 17, 2007  —  RealNetworks®, Inc. (NASDAQ: RNWK), a digital entertainment services company, announced today an agreement with Mattel, Inc. to develop, publish and distribute Scrabble®, UNO® and several Mattel game titles for downloadable PC and online play throughout the world (excluding the U.S. and Canada for Scrabble®).

As the worldwide leader in the design, manufacturing and marketing of toys, Mattel selected Real for its strong casual games development team and distribution channel.  Real has developed some of the industry's most popular casual game titles, including award-winners like Super Collapse and South Park 10: The Game, and develops major brand titles on a global level via its design studios GameHouse and Zylom.

"Consumers are looking for fun, interactive game-play in the online world, and Real's experience and understanding of the casual gaming market makes them a great choice as our partner as we expand our efforts in this arena," said Cynthia Neiman, vice president, marketing, Mattel Games. "Together, we are bringing some of the world's most popular games to a new format, creating an interesting 'twist' on classic family game-play."

According to the Casual Games Association, more than 200 million people worldwide play casual games via the Internet — with the casual gaming industry expected to reach $1.5 billion by 2008.  With this growing market and demand, there is great opportunity for both Real and Mattel to bring the fun and enjoyment of classic board games online.

"Games like Scrabble and UNO are enjoyed by families all over the world," said Harold Zeitz, senior vice president of games for Real. "Making these games available online is a natural fit as people begin to look first to the computer for entertainment.  Through this partnership, they will find the Mattel classic games they grew up with now on the PC."

The first game titles of this partnership are expected to come out in mid-2008.

For More Information:
Ryan Luckin
RealNetworks
206-892-6330
rluckin@real.com

Michele Sturdivant
Mattel
310-252-4374
michele.sturdivant@mattel.com

Deann Mayeda
SHIFT Communications for RealNetworks
415-591-8404
dmayeda@shiftcomm.com

ABOUT REALNETWORKS

RealNetworks, Inc. is providing ways for consumers to be entertained on any screen (PC, home entertainment system, portable device or mobile phone) anywhere. Its digital entertainment services include RealPlayer, the acclaimed Rhapsody® music service, one of the largest Casual Games destinations RealArcade®, and a variety of mobile entertainment services offered to consumers by leading wireless carriers around the world. RealNetworks' corporate information is located at www.realnetworks.com/company.

ABOUT MATTEL

Mattel, Inc., (NYSE: MAT, www.mattel.com) is the worldwide leader in the design, manufacture and marketing of toys and family products. The Mattel family is comprised of such best-selling brands as Barbie®, the most popular fashion doll ever introduced, Hot Wheels®, Matchbox®, American Girl®, Radica® and Tyco® R/C, as well as Fisher-Price® brands, including Little People®, Power Wheels® and a wide array of entertainment-inspired toy lines. Mattel is recognized as one of the 100 Most Trustworthy U.S. Companies by Forbes Magazine and is ranked among the 100 Best Corporate Citizens by CRO Magazine. Committed to ethical manufacturing practices, Mattel marks a 10-year milestone in 2007 for its ever-evolving Global Manufacturing Principles and focus on sustainable business practices. With global headquarters in El Segundo, Calif., Mattel employs more than 30,000 people in 43 countries and territories and sells products in more than 150 nations. Mattel's vision is to be the world's premier toy brands — today and tomorrow.

UNO and associated trademarks and trade dress are owned by Mattel, Inc. © 2007 Mattel, Inc. All Rights Reserved.  SCRABBLE is a registered trademark of J.W. Spear & Sons, Limited, a subsidiary of Mattel, Inc.

RealNetworks, GameHouse, Mr. Goodliving, RealArcade, Rhapsody, RealPlayer and the Real logo are trademarks or registered trademarks of RealNetworks, Inc. or its subsidiaries.