COMPAQ AND REALNETWORKS AGREE TO FEATURE REALONE PLAYER AND REALONE SUBSCRIPTION SERVICES ON CONSUMER PCS.

RealNetworks, Inc. (Nasdaq: RNWK) and Compaq Computer Corporation (NYSE: CPQ) have announced that Compaq Presario PCs for consumers will ship with RealNetworks' RealOne Player as the default media player.

Compaq will also offer existing customers and new PC buyers membership in RealNetworks' subscription services, RealOne Membership and RealOne Music. RealOne Membership and RealOne Music offer Compaq consumers access to premium content from ABCNews.com, CBS, CNN, FOX Sports, Warner Music Group, EMI, Bertelsmann and more.

"Compaq is committed to providing consumers with anytime, anywhere access to entertainment and information, and we are pleased to expand our Internet offerings to include RealNetworks, which has long been a leader in connecting consumers to valuable Web content," said Bob Lund, Vice President of Business Development, Compaq Computer Corporation. "We believe RealOne offers a premier media experience to our customers."

"Compaq is a leader worldwide in the consumer PC business, and we are excited to be working with them to bring the breakthrough media experience of RealOne to even more consumers," said Larry Jacobson, president and COO, RealNetworks, Inc. "RealOne Membership and RealOne Music offer consumers more than they could ever get before in one place on the Web, and Compaq's multimedia computers are a great place to experience media."

Compaq Presario desktop and notebook PCs will begin shipping with RealNetworks' consumer software as the default media player, which will also serve as the default MP3 and CD player, in early 2002. Early units will ship with RealPlayer and RealJukebox until RealOne Player is in final form, expected in the first half of 2002. Compaq will offer RealOne Membership, including RealOne Music, to their existing customers and new PC buyers through a RealOne icon on the desktop, a hot link to a co-branded Compaq and RealOne Web site from the Compaq Internet Keyboard, and other online and offline promotion vehicles.

Launched earlier this month in beta form, RealOne Player provides consumers with everything they need to enjoy and organize their media including the ability to stream and download, browse the Web, create CDs and use portable devices. RealOne Membership offers premium content from companies such as ABCNEWS.com, CBS SURVIVOR INSIDER, CNN, E! Networks, FoxSports.com, MLB Advanced Media, and NBA through RealOne Membership.