RealNetworks Extends Sony Deal, Airs Earnings Shortfall

NEW YORK — RealNetworks Wednesday built on the new strategic direction it
forged with long-time partner Sony in May to push digital audio technology in the consumer electronics market.

At TechXNY/PC Expo Wednesday, RealNetworks said it would release a Sony Music Device plug-in for the RealOne Player, allowing Sony
customers to transfer their digital music to Sony devices like the Net MD Walkman and Network Walkman.

RealNetworks plans to make the plug-in available on July 8, and said it will promote the Net MD product line across its family of
Web sites.

“For the millions of consumers who use Sony’s growing family of music players such as Net MD Walkman, Network Walkman, and VAIO
personal computers, the RealOne Player provides considerable benefits for managing and transferring digital content,” said Keiji
Kimura, corporate senior vice president of Sony Corporation.

In related news, RealNetworks said late Wednesday that second-quarter revenue would be as much as 15 percent less than expected. The outfit now expects quarterly sales to be between $42.5 million and $45 million, and expects a loss of 1 to 2 pennies per share.

The company blamed the shortfall on soft systems software business this quarter, due to some corporations reducing or delaying their information technology spending.

“While we are disappointed with the expected results of our systems business, they reflect a trend that several others in the industry are seeing as well,” stated Rob Glaser, chairman and CEO.

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