Netscape and RealNetworks Sign Strategic Agreement to Distribute RealPlayer via Netscape Communicator and Netscape Netcenter Portal Site

MOUNTAIN VIEW, Calif. and SEATTLE (October 19, 1998) - Netscape Communications Corporation (NASDAQ: NSCP) and RealNetworks, Inc. (NASDAQ: RNWK) today announced an agreement to distribute and include RealNetworks RealPlayer software with Netscape's highly acclaimed Internet client software Netscape Communicator 4.5, available this week, and through Netscape's popular Internet portal Netscape Netcenter. This announcement demonstrates the continued momentum of Netscape's efforts to offer consumers a seamless browser/portal experience and marks the increased distribution of RealNetworks popular Internet streaming media technology. For the first time, Netscape Communicator users can enjoy powerful Netscape Netcenter audio and video content easily, without separately having to download RealPlayer.

RealNetworks RealPlayer 5.0 will be bundled with Netscape Communicator 4.5 and Netscape Communicator 4.5 with Enterprise Calendar and will also be made available on the popular Netscape SmartUpdate service from Netscape Netcenter located on the web at http://home.netscape.com. Netscape will initially distribute RealPlayer 5.0 and later plans to distribute the final version of RealPlayer G2, which is expected to ship by the end of the year.

"This announcement demonstrates Netscape's commitment to giving consumers the ability to enjoy audio and visual content from Netscape Netcenter," said Mike Homer, executive vice president and general manager of Netscape's Netcenter division. "In addition, Netscape continues to deliver tools that empower the consumer Internet experience through innovative browser/portal integration. By integrating the industry standard for streaming audio and video delivery with Netscape Communicator, Netscape and RealNetworks make the Internet experience simple and powerful."

"Today's announcement adds to our recent distribution momentum and signifies a substantial increase in the number of consumers and corporate users able to take advantage of rich media on the Internet and corporate intranets," said Rob Glaser, chairman and CEO of RealNetworks, Inc. "We're excited about extending the power of RealPlayer to Netscape's millions of installed users. With this agreement, Netscape and RealNetworks will accelerate the availability of compelling audio and video content on the Internet."

"Bundling best-of-breed applications is a powerful distribution mechanism, and a significant value-add for consumers," said Larry Gerbrandt, senior analyst with Paul Kagan Associates, Inc., a media research and consulting firm based in Carmel, Calif. "Through bundling applications and the aggregating of streamed media on one of the Internet's most heavily trafficked portals, consumers will gain convenient access to branded, media-rich content, increasing the technology's use and exposure."

This announcement falls on the heels of Netscape's recent announcement of the Netcenter 'Entertainment' channel that will offer a wide array of consumer content and services including powerful audio and video media. With Netscape Communicator 4.5 and Netscape Communicator 4.5 with Enterprise Calendar, consumers can enjoy these Netcenter audio and video offerings with the RealPlayer technology. RealPlayer 5.0 will initially ship with the U.S. versions of Netscape Communicator 4.5 and is expected to later ship with international versions.

Earlier this month, RealNetworks entered into a number of similar strategic licensing and distribution agreements maximizing market adoption of RealPlayer. With these agreements, RealNetworks expects to gain access to more than 25 million corporate customers and more than 13 million consumers. This significantly broadens the reach of streaming media to a new segment of corporate users and consumers.

Currently, more than 85 percent of all Web pages on the Internet with streaming media use industry leading RealAudio, RealVideo or RealFlash and more than 300,000 hours of live RealAudio and RealVideo programming are available each week. The RealPlayer, with more than 35 million registered and active users, is one of the most popular software applications used on the Internet today. The beta 2 release of RealSystem G2 is available immediately for download at http://www.real.com.

Netscape Netcenter is Netscape's leading portal site that provides users with a home base on the Internet. From Netcenter, users can navigate the Internet, access a broad range of consumer and business content and services and communicate with others online. The site includes 17 content channels and a set of leading-edge services, including the new Netscape-branded Search, Netscape Contact, Netscape SmartUpdate, Software Download, Member Directory, My Netscape personalization service, and WebMail.

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.

Netscape Communications Corporation is a leading provider of software and services for businesses that want to transform the way they create and keep customers in the emerging Net Economy. The company offers a full line of enterprise software solutions, professional services, and a leading Internet portal to help companies build, buy or outsource Internet applications that drive revenue growth, build customer loyalty, and create new levels of business efficiency. Traded on NASDAQ under the symbol NSCP, Netscape Communications Corporation is based in Mountain View, California.

Additional information on Netscape Communications Corporation is available on the Internet at http://home.netscape.com, by sending email to info@netscape.com, or by calling 650/937-2555 (corporations) or 650/937-3777 (individuals).

Netscape, Netscape Navigator, Netscape Certificate Server, Netscape ONE, SuiteSpot, and the Netscape N and Ship's Wheel logos are registered trademarks of Netscape Communications Corporation in the United States and other countries. Other Netscape logos, product names, and service names are also trademarks of Netscape Communications Corporation, which may be registered in other countries. Other product and brand names are trademarks of their respective owners.

RealAudio, RealVideo, RealPlayer and RealSystem are trademarks or registered trademarks of RealNetworks, Inc. RealFlash is a trademark of Macromedia, Inc. and RealNetworks, Inc. Macromedia and Flash are registered trademarks of Macromedia, Inc. All other companies or products listed herein are trademarks or registered trademarks of their respective owners.