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Sony Computer Entertainment and RealNetworks Form Strategic Alliance To Include RealPlayer on PlayStation(R)2

   SONY PLAYSTATION 2 LOGO
Sony PlayStation 2 logo. (PRNewsFoto)[KI]
LOS ANGELES, CA USA
 World's Most Popular First Home Entertainment Platform Now Enables Internet
                                Media Delivery

    TOKYO and SEATTLE, May 16 /PRNewswire/ -- Sony Computer Entertainment Inc.
(SCEI) and RealNetworks(R), Inc. (Nasdaq: RNWK) today announced a strategic
alliance to embed industry-leading RealPlayer(R) 8 and other RealNetworks
client technologies on SCEI's PlayStation(R)2 computer entertainment system
and the PlayStation 2 Software Development Kit (SDK).  This integration will
enable the more than 10 million users of PlayStation 2 to enjoy their favorite
Internet media, including sports, breaking news and entertainment, through
RealPlayer.
    (Photo:  NewsCom:  http://www.newscom.com/cgi-bin/prnh/20000510/SFW104-a )
    "Our goal is to revolutionize the home entertainment market and even
communication itself with PlayStation and PlayStation 2, the most prevailing
entertainment platforms in the world," said Ken Kutaragi, CEO, Sony Computer
Entertainment Inc.  "Streaming media integration will vastly enrich the
computer entertainment world PlayStation has built up to date.  While
envisioning the direct download of digital content from the network in the
coming broadband era, we will obtain digital streaming and downloadable media
using current networks, by integrating into PlayStation 2 the world's most
popular Internet media delivery client, RealPlayer.  As the world of gaming
and the Internet merge, so too will entertainment and communication."
    "Through this exciting collaboration with Sony Computer Entertainment, we
will provide consumers the ability to enjoy their favorite Internet media
through the most popular digital home entertainment platform in history," said
Rob Glaser, chairman and CEO, RealNetworks, Inc.  "One of RealNetworks' core
objectives is to enable consumers to experience their favorite Internet media
wherever and whenever they want, and our universal media delivery system
allows us to provide this experience on any device and on any platform."
    As a result of today's announcement, current and future
PlayStation 2 owners can extend the use of their PlayStation 2 to enjoy a wide
array of streaming and downloadable audio and video content, including more
than 2500 Internet radio stations.  With more than 200 million unique
registered users worldwide, RealPlayer is the world's most popular media
player and one of the most popular applications on the Internet.  In addition,
over 85 percent of web pages that feature streaming media use RealNetworks'
format.
    As part of this alliance, Dynamic Network Authentication System, a newly
developed proprietary authentication system for PlayStation 2, developed by
Sony Computer Entertainment will leverage RealNetworks' RealSystem iQ
technologies to establish a highly-secured copy management system.
    For game developers, this announcement means that they will be able to use
the latest RealPlayer technology to revolutionize game design and
architecture.  Incorporating streaming media into games through the
PlayStation 2 SDK will enhance the possibilities in creating games and provide
new experiences to game players.
    With PlayStation and PlayStation 2, Sony Computer Entertainment will
create and develop a new world of computer entertainment for the broadband era
through the fusion of game, music, movies, and broadcasting.

    About Sony Computer Entertainment
    Recognized as the global leader and company responsible for the
progression of consumer-based computer entertainment, Sony Computer
Entertainment Inc. (SCEI) manufacturers, distributes and markets the
PlayStation(R) game console and PlayStation(R)2 computer entertainment system.
SCEI, along with its subsidiary divisions Sony Computer Entertainment America
Inc. and Sony Computer Entertainment Europe Ltd., develops, publishes, markets
and distributes software, and manages the third party licensing programs for
these two platforms in the respective markets worldwide.  Headquartered in
Tokyo, Japan, Sony Computer Entertainment Inc. is an independent business unit
of Sony Group.

    About RealNetworks
    RealNetworks, Inc is the global leader in Internet media delivery.  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 .  RealNetworks'
systems and corporate information is located on the Internet at
http://www.realnetworks.com .

    NOTE:  This press release contains forward-looking statements that involve
risks and uncertainties, including those relating to RealNetworks' ability to
develop and market wireless home-networking technologies.  Actual results may
differ materially from the results predicted.  Factors that could cause actual
results to differ from the results predicted include the risks associated with
the development of new wireless technologies and the sustained adoption and
use of RealNetworks technology by customers.  More information about potential
risk factors that could affect RealNetworks' business and financial results is
included in RealNetworks' annual report on Form 10-K for the year ended
December 31, 1999, and its quarterly report on Form 10-Q for the period ended
September 30, 2000, and from time to time in other reports filed by
RealNetworks with the Securities and Exchange Commission.

    NOTE:  PlayStation and the PlayStation logo, PS one and PS2 are registered
trademarks of Sony Computer Entertainment Inc.  All other trademarks are
property of their respective owners.
    RealNetworks, RealPlayer and RealJukebox are registered trademarks of
RealNetworks, Inc.



SOURCE Sony Computer Entertainment America Inc.




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Related links:
  • http://www.playstation.com
    Photo Notes:
    NewsCom: 
    http://www.newscom.com/cgi-bin/prnh/20000510/SFW104-a
    AP Archive: http://photoarchive.ap.org
    PRN Photo Desk, 888-776-6555 or 201-369-3467
    CONTACT:
    Molly Smith of Sony Computer Entertainment
    America, 650-655-6044, or molly_smith@playstation.sony.com; or
    Joe Cerrell of RealNetworks, 206-892-6821, or jcerrell@real.com