1. 1 MusicNet Announcement April 2, 2001

2. 2 What MusicNet Is MusicNet is a new company we are launching today. Its goal is to make the dream of digital music subscription services a reality MusicNet will aggregate technology and content from multiple providers, and offer digital music distribution services through leading Internet consumer companies MusicNet will offer the most comprehensive digital music distribution service possible. It starts with content integrated from 3 of the top 5 record labels (WMG, BMG, and EMI) MusicNet’s distribution partners will be able to offer their customers subscription packages consisting of major label music that can be both downloaded and streamed. Both AOL and RealNetworks will be distribution partners for MusicNet MusicNet is actively seeking additional content and distribution partners

3. 3 The MusicNet Solution MusicNet combines content from the most popular artists and labels, with technology and distribution from the Internet’s leading companies to create the most comprehensive digital music offering MusicNet will work aggressively to sign additional labels and distribution partners to continue to build on this platform The MusicNet Digital Music Platform Content WMG BMG EMI Others Technology MusicNet RealNetworks Others Distribution AOL RealNetworks Others

4. 4 Who MusicNet Is MusicNet is owned by AOL Time Warner, Bertelsmann, EMI, RealNetworks, and MusicNet employees MusicNet today has a staff of approximately 50 people, mostly in product development. Its Chairman and acting CEO is Rob Glaser, Chairman & CEO of RealNetworks MusicNet was originally formed in early 2000 by RealNetworks and Warner Music Group. RealNetworks incubated MusicNet from its inception through today The MusicNet staff has built an end-to-end digital distribution platform which integrates RealNetworks technology with other proprietary technology developed by MusicNet’s staff

5. 5 How Much Music will be Available via MusicNet MusicNet already has signed up a majority of the major music labels and is in active discussion to sign additional labels, both major and independents With the 3 major labels already partnering, MusicNet will offer the largest selection of digital music available today. Below is just a sample of the some of the content that will be available: Warner Music Group Eric Clapton Madonna All Saints matchbox twenty BMG Christina Aguilera Brad Paisley Dave Matthews Carlos Santana EMI D’Angelo Ben Harper Robbie Williams Everclear

6. 6 How Consumers will Purchase the MusicNet Service MusicNet will act as an application service provider for the digital music space offering both content and services. MusicNet will sign distribution agreements with third parties who will sell direct to the consumer MusicNet already has signed distribution partnerships with AOL and RealNetworks and will work with other third parties to offer the MusicNet subscription service including Napster MusicNet Service RealNetworks AOL Other Distributors (Napster, Retailers, etc) Consumer

7. 7 RealNetworks’ Role in MusicNet Incubator, now 40% shareholder Technology provider –RealSystem iQ, the leading architecture for digital media delivery –RealPlayer’s industry-leading technology supports the widest range of music formats Platform to drive MusicNet sales to consumers –190 million current unique registered users of RealPlayer worldwide –5 years of successful media e-commerce: over 3 million paying consumers –Proven track record on subscriptions: GoldPass subscription service has 175K subscribers in just 6 months

8. 8 What About Napster? MusicNet wants to sign up as many content providers and distribution partners as possible MusicNet will enter into distribution discussions with Napster, and hopes to be able to offer its services through Napster in a fully legal way that satisfies legal, copyright and security concerns

9. 9 What’s Next MusicNet expects to enable its initial distribution partners (RealNetworks and AOL) to launch subscription services beginning in the summer of 2001 Pricing, packaging, and availability will be announced by the distribution partners Initial roll-out will be in North America -- we intend to offer our services around the world over time

10. 10 MusicNet Announcement April 2, 2001