Red Hat and RealNetworks Team to Provide Comprehensive Streaming Media Solutions on Linux

Research Triangle Park

United States, February 22, 2000

Worldwide Agreement Combines RealSystem G2 and Red Hat Linux Enabling Robust and Highly Scalable Streaming Media Solutions for Internet and Enterprise Broadcasters

Red Hat, Inc. (NASDAQ:RHAT), the market leader in Linux and open source solutions, and RealNetworks, Inc. (NASDAQ: RNWK), the recognized leader in media delivery on the Internet, today announced the formation of a strategic alliance to create integrated media delivery solutions based on RealSystem G2 and Red Hat Linux. Combining the market-leading and comprehensive software solutions from RealNetworks and Red Hat provides unified robust scalability and reliability for systems operation and Internet media delivery for broadcasters, hosting providers and corporations worldwide. The first joint solutions are available now from http://www.realnetworks.com as well as from http://www.redhat.com.

"We are thrilled to see RealNetworks, the acknowledged leader in digital media on the Internet, take a leadership role in growing demand for Linux-based solutions," said Matthew Szulik, president and CEO of Red Hat, Inc. "This agreement offers broadcasters, hosting providers and corporations the integration and tuning capabilities that simply are not available with closed operating systems. These solutions will also greatly ease installation, configuration, operation, and support as well as provide our joint customers with powerful performance and trusted reliability."

"RealNetworks has witnessed a rapid adoption of streaming media on the Linux platform and this agreement with Red Hat aligns our mutual commitment to provide the market place with extensible software architectures," said Rob Glaser, chairman and CEO, RealNetworks, Inc. "This strategic relationship with Red Hat delivers robust streaming media solutions that directly address the highly demanding requirements of Internet broadcasters."

As part of the agreement, RealNetworks' RealServer 7.0 will be physically bundled with Red Hat's open source operating system software and distributed to hundreds of thousands of Red Hat Linux users worldwide. Service and support for this enterprise solution will be collaboratively provided by both companies. The two companies will also jointly market, on a worldwide basis, this combined solution through their respective sales forces and marketing programs. RealNetworks will join the Red Hat Linux Enterprise Edition product line, a collaborative effort between Red Hat and industry leading application providers designed to deliver optimized solutions, incorporating support and simplified configuration of well-known enterprise and Internet applications, to enterprise customers.

RealNetworks also announced RealPlayer 7 for Linux which will be made available within 30 days from http://www.realnetworks.com and will be physically bundled with Red Hat's open source operating system software, distributed to hundreds of thousands of Red Hat Linux users worldwide. RealPlayer 7 for Linux will provide Red Hat Linux users access to a wide variety rich media experiences including Real.com Take5.

About RealSystem G2
Released in late 1999, RealServer 7.0, RealProducer 7.0, and RealPlayer 7 are powerful components of RealSystem G2, offering the streaming media and digital delivery industry with an entirely new standard for scalable, reliable Internet multimedia experiences. The patent-pending advancements in RealServer 7.0 deliver up to a 250% improvement in server capacity, improved client connections, and reliability ensuring rigorous scalability and unattended operation to meet the increasing demands of delivering high-quality media content over the Internet to a worldwide audience. RealProducer 7.0 delivers the quality of MPEG-1 video at half the data rate and delivers true VHS video experiences at 800 Kbps. The unparalleled and remarkable image clarity and sharpness delivered by RealSystem G2 has been realized through powerful DVD-derived encoding techniques incorporated for the first time in a popular Web video media system. RealPlayer 7 includes dramatic improvements in start-up time, a new user interface with enhanced media navigation features, and delivers higher quality media experiences. The total integration of these powerful authoring, serving and playback products has been established as the most scalable and reliable cross-platform media delivery system available. RealSystem G2 provides established business models in subscription, pay per view and Advertising and is supported by over 160 developers with a wide range of solutions.

RealNetworks, RealPlayer, RealSystem, RealAudio, RealVideo, RealText and RealPix are trademarks or registered trademarks of RealNetworks, Inc. RealFlash is a trademark of RealNetworks and MacroMedia, 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.

About RealNetworks

About RealNetworks
RealNetworks, Inc., based in Seattle, is the recognized leader in media delivery on the Internet. 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. Consumers can access and experience audio/video programming and download RealNetworks consumer software on the Internet at http://www.real.com. All RealNetworks systems and corporate information is located on the Internet at http://www.realnetworks.com.

About Red Hat, Inc.

Red Hat, the world's leading open source and Linux provider, is headquartered in Raleigh, NC with satellite offices spanning the globe. Red Hat is leading Linux and open source solutions into the mainstream by making high quality, low cost technology accessible. Red Hat provides operating system software along with middleware, applications and management solutions. Red Hat also offers support, training and consulting services to its customers worldwide and through top-tier partnerships. Red Hat's open source strategy offers customers a long term plan for building infrastructures that are based on and leverage open source technologies with focus on security and ease of management. Learn more: http://www.redhat.com

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Forward-Looking Statements

Forward-looking statements in this press release are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. Investors are cautioned that statements in this press release that are not strictly historical statements, including, without limitation, management's plans and objectives for future operations, and management's assessment of market factors, constitute forward-looking statements which involve risks and uncertainties. These risks and uncertainties include, without limitation, reliance upon strategic relationships, management of growth, the possibility of undetected software errors, the risks of economic downturns generally, and in Red Hat's industry specifically, the risks associated with competition and competitive pricing pressures, the viability of the Internet, and other risks detailed in Red Hat's filings with the Securities and Exchange Commission, copies of which may be accessed through the SEC's Web site at http://www.sec.gov.

LINUX is a trademark of Linus Torvalds. RED HAT is a registered trademark of Red Hat, Inc. All other names and trademarks are the property of their respective owners.