RealNetworks Acquires Atrativa, Capping Banner Year in Casual Games Leadership

RealNetworks Acquires Atrativa, Capping Banner Year in Casual Games Leadership

Digital Media Company Pioneers New Industry Revenue Streams, Broadens Global Footprint and Increases Game Player Loyalty

AMSTERDAM, Netherlands, from Casual Connect Europe, Feb. 6
/PRNewswire-FirstCall/ -- RealNetworks(R), Inc. (NASDAQ:RNWK), one of the world's largest developers, publishers and distributors of casual games, announced it acquired Sao Paulo, Brazil-based Atrativa, the most visited casual games site in South America for an undisclosed price at the end of last year. Additionally, Real reinforced its casual games leadership position with technology innovations, revenue growth and worldwide expansion across Europe, China, Latin America and the United States.

Founded in 2001, Atrativa is now Brazil's most widespread casual games distributor to the largest localized portals in South America. Earlier in 2006, Real also purchased The Netherlands-based Zylom game studio and distributor. Since this acquisition, Real has grown its European syndication partnerships to include the many of the largest portals in Europe. In November, Real successfully launched the European version of FunPass, an all-you-can-eat game subscription program.

In China, the company recently launched RealGame, a downloadable Web client offering users an online catalog of games, interactive community, multi-player game options and free advertising-enabled casual games. In 2006, IDC reported that Internet penetration in China has grown to more than 107.9 million users.

Over the course of the year, Real's GameHouse studio released five hit titles including Acropolis, Caribbean Mah Jong, Super Collapse! 3, SCRABBLE and Diamond Detective. Real's Zylom studio released seven hit titles including Shangri La, Babel, Bunny Bounce, Lotus, Mahjong Fortuna 2, Delicious Deluxe and The Legend of El Dorado. Additional games were published for developer partners such as Tropix by Robot Super Brain, Mysteryville by Nevosoft and QBeez 2 by Skunk Studios, plus many others. Both GameHouse and Zylom have received numerous nominations for the upcoming first annual Zeebys Awards by the Casual Games Association.

In-game advertising, which Real pioneered, is increasingly becoming an accepted method for driving new revenue streams for game developers and publishers. DFC Intelligence reported that in 2006, advertisers spent approximately $150 million buying space in casual games, or on casual game sites. In June, Real launched the first in-game streaming video advertising platform for casual games, breaking new ground for advertisers and developers. The company now offers nearly two dozen ad-enabled games, some of which offer free unlimited play for consumers. This model will be expanded to Real's European offerings in 2007. In Europe last year, Real expanded a different ad model-the Clicktopia platform, providing cost per click advertising in games on Zylom.com . The initiative has proven successful in both the United Kingdom and Germany, leading Real to open two new sales offices in Europe.

Today Real offers games to consumers worldwide through RealArcade, GameHouse.com , Zylom.com and Atrativa.com.br , which account for more than 750,000 game downloads on a typical day.

About RealNetworks, Inc.

RealNetworks, Inc. is the leading creator of digital media services and software including Rhapsody(R), RealPlayer(R) 10, and casual PC and mobile games. 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. Consumers can access and experience audio/video programming and download RealNetworks' consumer software at http://www.real.com/ . RealNetworks' systems and corporate information is located at http://www.realnetworks.com/ .

FCMN Contact: meggers@barokas.com

Source: RealNetworks, Inc.

CONTACT: Carol Rogalski of RealNetworks, Inc., +1-425-890-4747, or
crogalski@real.com; or Ashley Allman of Barokas, +1-206-344-3133, or
ashley@barokas.com, for RealNetworks, Inc.

Web site: http://www.realnetworks.com/

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