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Adaptec and RealNetworks to Bring True Music Portability to the Internet.

Business Editors/High-Tech Writers

MILPITAS, Calif.--(BUSINESS WIRE)--Jan. 7, 2000

Adaptec, Inc. (Nasdaq:ADPT) announced it has entered into an agreement with RealNetworks (Nasdaq:RNWK) to provide CD recording functionality for RealJukebox, the Internet's most popular digital music system.

This agreement will give more than 21 million RealJukebox users the freedom to make CDs from their custom playlists and listen to them whenever they like on any standard audio CD player.

For Adaptec, the RealNetworks relationship represents a marketing milestone. Gaining access to the tens of thousands of Internet audio fans who use RealJukebox every day is a significant marketing boost and provides Adaptec valuable mindshare among those Internet aficionados.

Using the Internet to drive the Easy CD Creator upgrade cycle to the full-featured, higher-performance version of the software is expected to create new revenue opportunities for Adaptec's software business. And providing users access to a range of CD recording solutions and making them aware of CD recording's benefits over other methods of Internet music downloads (such as convenience, ease of use, and portability to standard home and car audio systems) should help grow the overall CD recording market.

Adaptec is the pioneer and leader in managing digital content with audio and video recording software. Its products include the award-winning Easy CD Creator 4 Deluxe, WinOnCD, JustAudio!, SoundStream and Toast 4 Deluxe. Available for immediate download from http://www.real.com, RealJukebox Update 1 will include a beta version of CD recording software based on Easy CD Creator, the industry's leading CD recording software.

The 2x CD burning functionality will enable consumers to simply drag and drop music tracks or personal playlists onto a CD-R icon within RealJukebox. For consumers who don't already have Easy CD Creator 4 installed, Adaptec is providing a download of a plug-in for RealJukebox at http://www.adaptec.com/realdeal. If people desire additional functionality for recording CDs, such as data, photo or video, or higher recording speed, they can upgrade to Easy CD Creator 4 Deluxe.

"Our collaboration with RealNetworks will bring CD recording to the masses and make it easy for people to listen to their favorite music any way they want to," said Tom Shea, vice president and general manager of Adaptec's software products group. "Together with our channel partners, this relationship with RealNetworks will make CD recording a household concept and provide Adaptec a new marketing model from which Adaptec and its partners will benefit."

Safe Harbor Statement

This press release contains forward-looking statements regarding Adaptec's CD recording software market share, global position, and opportunities for product sales. These forward-looking statements are subject to risks and uncertainties and actual results could differ materially from these projections due to various factors including, but not limited to, the risks associated with executing marketing relationships, new product introductions by competitors, rapidly changing product preferences by customers, and general economic conditions. For a more detailed discussion of the factors that affect the company's operating results, interested parties should review Adaptec's Annual Report on Form 10-K for the fiscal year ended March 31, 1999.

About Adaptec

Adaptec makes storage work with products and solutions that move, transfer, manage, and protect valuable data that is the heart of Internet and e-business computing. Adaptec's hardware and software products are found in high-performance servers and workstations from the world's leading manufacturers, and are sold through distribution channels to enterprises, medium and small businesses, and consumers.

With a range of host I/O, RAID, and CD recording software products, Adaptec is a market leader in storage solutions, and a powerful enabler of today's information age. Adaptec is an S&P 500 and a NASDAQ 100 member. More information is available at http://www.adaptec.com.
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Publication:Business Wire
Date:Jan 7, 2000
Words:616
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