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Press release

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

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.

About Red Hat

Red Hat is the world’s leading provider of open source software solutions, using a community-powered approach to reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As the connective hub in a global network of enterprises, partners, and open source communities, Red Hat helps create relevant, innovative technologies that liberate resources for growth and prepare customers for the future of IT. Learn more at http://www.redhat.com.

Forward-looking statements

Certain statements contained in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: risks related to delays or reductions in information technology spending; the effects of industry consolidation; the ability of the Company to compete effectively; the integration of acquisitions and the ability to market successfully acquired technologies and products; uncertainty and adverse results in litigation and related settlements; the inability to adequately protect Company intellectual property and the potential for infringement or breach of license claims of or relating to third party intellectual property; the ability to deliver and stimulate demand for new products and technological innovations on a timely basis; risks related to data and information security vulnerabilities; ineffective management of, and control over, the Company’s growth and international operations; fluctuations in exchange rates; and changes in and a dependence on key personnel, as well as other factors contained in our most recent Quarterly Report on Form 10-Q (copies of which may be accessed through the Securities and Exchange Commission’s website at http://www.sec.gov), including those found therein under the captions "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations". In addition to these factors, actual future performance, outcomes, and results may differ materially because of more general factors including (without limitation) general industry and market conditions and growth rates, economic and political conditions, governmental and public policy changes and the impact of natural disasters such as earthquakes and floods. The forward-looking statements included in this press release represent the Company’s views as of the date of this press release and these views could change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of this press release.