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EXHIBIT 99.1
RealNetworks, Inc. Acquires NetZip, Inc
SEATTLE, Jan. 25 /PRNewswire/ -- RealNetworks(R), Inc. (Nasdaq: RNWK), the
recognized leader in media delivery on the Internet, today announced it has
acquired privately-held NetZip, Inc., a leading developer and provider of
Internet download management and utility software. NetZip has been a pioneer and
leader in developing consumer-friendly technology to improve the reliability of
downloading media and software files over the Internet.
"The acquisition of NetZip enables RealNetworks to provide superior media
and software delivery for tens of millions of Internet users," said Rob Glaser,
founder and CEO, RealNetworks. "NetZip has established itself as the leader in a
significant new category -- Internet download management. By joining NetZip's
world-class development, marketing and operations teams with RealNetworks, we
will further accelerate the development of the digital media distribution
business."
"We are extremely delighted to be joining forces with RealNetworks, the
clear leader in Internet media delivery, as we now have the opportunity to make
a dramatic, global, Internet-wide improvement in consumer media and software
delivery," said Boris Jerkunica, CEO, NetZip, Inc. "From the first day of our
business discussions with RealNetworks, there has been total alignment on the
vision and opportunity ahead for Internet media delivery."
RealNetworks has acquired NetZip, Inc. in exchange for approximately 1.7
million shares of RealNetworks stock. The acquisition, which will be accounted
for as a purchase transaction, was completed today, resulting in NetZip now
being wholly-owned by RealNetworks.
NetZip's two co-founders, Boris Jerkunica, CEO and Phil Hill, VP Marketing,
will be joining RealNetworks to continue to oversee the NetZip business.
RealNetworks will be relocating NetZip headquarters from Atlanta, GA to Seattle,
WA, and the majority of existing NetZip employees will join RealNetworks.
RealNetworks intends to widely distribute NetZip products to its existing
base of more than 95 million unique registered RealPlayer(R) users and more than
22 million unique registered RealJukebox(TM) users.
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NetZip Products
NetZip's award-winning download technology has been installed by more than
14 million users. The NetZip product line includes: Download Demon, a powerful
download tool; NetZip Classic, an Internet utility for file compression,
transfer and management with more than 4 million downloads since February 1998;
and FastView, a multiple file format viewer for viewing multimedia files on the
Web and from e-mail attachments. For more information about NetZip products,
please visit www.netzip.com.
NetZip also brings to RealNetworks its successful SmartPartner software
distribution partner program. SmartPartner enables partners to distribute a
customized version of Download Demon to deliver a one step download and
configuration of media and software from their Web sites to a user's desktops.
Current NetZip SmartPartners and other partners include: Netscape, McAfee,
C|Net, ZDNet, MP3.com, Internet.com, Activision, TUCOWS, Artist Direct,
Tunes.com, Diamond Multimedia, PC World, Symantec and Prodigy.
About RealNetworks
RealNetworks, Inc., based in Seattle, is the recognized leader in streaming
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. RealNetworks' systems and corporate information is located
on the Internet at http://www.realnetworks.com.
This announcement contains forward-looking statements that involve risks
and uncertainties, including those relating to RealNetworks' ability to provide
an improved Internet download experience for millions of Internet users,
RealNetworks' ability to lead and accelerate the development of digital media
distribution, RealNetworks' distribution of NetZip products to RealNetworks'
existing base of users, and RealNetworks' ability to continue to maintain its
leadership in media delivery over the Internet and the success of recently
introduced products and services. Actual results may differ materially from the
results predicted and reported results should not be considered an indication of
future performance. The potential risks and uncertainties include, among others,
risks relating to the acquisition of NetZip and other acquisitions that
RealNetworks' may determine to pursue in the future; RealNetworks' limited
operating history; RealNetworks' history of losses; the fluctuation of future
revenues; likely fluctuation in quarterly and annual operating results; intense
competition from Microsoft and other streaming media product and service
providers; the uncertain results of RealNetworks' recent extension of our
business into downloadable media and local media delivery; risks associated with
new product
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introductions, product delays and errors; RealNetworks' reliance on third
parties to develop compelling content for delivery over the Internet; dependence
on key personnel and the need to attract, train and retain qualified personnel
for whom there is intense competition; challenges associated with managing rapid
growth; RealNetworks' dependence on continued growth of the Internet as a medium
for communications, commerce and advertising; risks relating to new competition
and changing technology and market needs as broadband communications
infrastructure develops; the importance of strategic relationships with leading
companies in the broadcast, entertainment and technology industries; the
evolving nature of the market for the Company's products and services; the
continuation of the momentum in the streaming and digital music markets, the
ability to continue profitability, strength in advertising and Web traffic to
our site and the success of recent agreements with other companies; the
Company's dependence on third parties for sales, technology, content and
distribution; the possible increased intensification of competition in
RealNetworks' industry as a result of continuing consolidation; the ability of
the Company to continue to innovate and protect its intellectual property; and
the volatility of the Company's stock price. More information about potential
risk factors that could affect the Company's business and financial results is
included in the Company's quarterly report on Form 10-Q for the three month
period ended September 30, 1999, and from time to time, in other reports filed
by the Company with the Securities and Exchange Commission.
NOTE: RealNetworks, Real.com, RealPlayer and RealJukebox are trademarks or
registered trademarks of RealNetworks, Inc. NetZip, Download Demon, NetZip
Classic, FastView and SmartPartner are trademarks of NetZip, Inc. All other
companies or products listed herein are trademarks or registered trademarks of
their respective owners.
/CONTACT: media, Kari Day, 206-674-2358, or karid@real.com; or financial
analysts, Paul Bialek, 206-674-2342, or pbialek@real.com, both of RealNetworks/
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