RealNetworks Dynamic In-Game Streaming Video Advertising Model Doubles Standard Industry Click-Through Rates

Successful customer adoption of new business model increasing game revenue three-fold for game developers

SEATTLE — February 5, 2007  —  RealNetworks®, Inc. (NASDAQ: RNWK), one of the world's largest developers, publishers and distributors of casual games, today announced that more than four million casual game players have downloaded streaming video ad-enabled games from Real games sites since June 2006. This innovative in-game ad model has resulted in more than twice the typical browser-based video ad metrics including an approximate 10 percent click-through rate, as well as a 74 percent full video completion rate.  The majority of the people viewing these ads are from the coveted demographic — women over 30.

"This model, powered by Eyeblaster's eb. in-games solution, has yielded more than 40 million high-quality video ad impressions to date for top-tier advertisers. The evolution of in-game advertising capabilities provide advertisers a viable alternative to traditional brand building ad channels such as television and outdoor display ads, and a channel that complements traditional marketing strategies. In addition to impressions, revenue per game download has increased by 300 percent on average, creating a significant new revenue stream for game developers and distributors.

"From the developer perspective, we have been quite impressed by the results after integrating this in-game advertising model into our games such as Cake Mania," said Daniel Bernstein, CEO of Sandlot Games.  "We are seeing increases in download volume, user play time, and overall game revenues. RealNetworks has pioneered a new business model for the casual games industry and we are proud to be an early adopter."

Casual game players are also enjoying the benefits of ad-enabled games. Instead of the limited 60-minute free trial usually associated with casual games, players may receive unlimited free game play.  In exchange, video ads are presented every 20 minutes of play between levels during natural breaks of the game. In the event the customer decides to purchase the game, the ads are automatically disabled. Revenue generated from the in-game ad inventory is shared with developers in a similar pay structure as that of game sales.

The $1 billion dollar casual gaming industry, with hit games such as Delicious and Super Collapse! 3, is expected to become a much bigger contender in the advertising world over the next few years.  The Yankee Group estimates in-game advertising revenues to reach $732 million by 2010.

Rob Glaser, chairman and CEO of RealNetworks will expand on this topic at the Casual Games Association's Casual Connect Conference in Amsterdam. Glaser will be delivering the conference's keynote address on Wednesday, February 7 at 9:30 a.m.  For more information on the conference, visit http://amsterdam.casualconnect.org.

For More Information:
Carol Rogalski
RealNetworks
425-890-4747
crogalski@real.com

Ashley Allman
Barokas
206-344-3133
ashley@barokas.com

ABOUT REALNETWORKS

RealNetworks, Inc. is the leading creator of digital media services and software including Rhapsody, RealPlayer10, and casual PC and mobile games. RealNetworks has more than 2.2 million paid subscribers to its premium digital media 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.