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                                                                    EXHIBIT 99.1



                        REALNETWORKS ANNOUNCES COMPLETION
                          OF VIVO SOFTWARE ACQUISITION


SEATTLE, WA, March 25, 1998 - RealNetworks (NASDAQ "RNWK"), the recognized
leader in streaming media, today announced the finalization of the company's
acquisition of Vivo Software, Inc., the leader and award winning developer of
streaming media creation tools. As expected, the completion of the transaction
finalized RealNetworks' acquisition of Vivo technology, intellectual property 
and customer base. In addition, Vivo's key personnel will now be joining
RealNetworks.

"We are pleased with the quick close of the acquisition and are now looking
forward to Vivo's superb staff joining us here in Seattle," said Rob Glaser,
founder and CEO, RealNetworks, Inc. "The close of the transaction brings
together the talented development and marketing organizations of Vivo and
RealNetworks, enabling us to deliver new solutions to a broader range of
customers."

The acquisition will be accounted for as a purchase transaction. All outstanding
shares of Vivo were exchanged for 1.1 million new RealNetworks shares, which are
valued at $17.1 million. The new shares represent 3.4% of the total 32 million
shares outstanding. As indicated at the time of the announcement of the
acquisition, a substantial portion of the purchase price will be written off as
in-process research and development. Excluding one-time acquisition charges,
RealNetworks does not expect the Vivo acquisition to have a material impact on
this year's overall financial results.

Vivo is a leader in developing streaming video creation tools distinguished by
their ease-of-use and high production quality across multiple bit rates that
offer support for both HTTP and specialized streaming media servers. The
VivoActive family of tools enables Web developers to create and deliver
streaming digital media, including video and audio, over corporate intranets and
the World Wide Web. Vivo products have been used to create content on more than
5,000 Web sites. Vivo was founded in 1993in Waltham, MA by a team of
internationally-recognized experts in video and audio signal processing
technology. Vivo's products have been honored with a number of awards, including
PC Magazine's Editor's Choice award and Web Technique's 1997 Multimedia Tool of
the Year award.

ABOUT REALNETWORKS

RealNetworks, Inc. (NASDAQ, "RNWK"), based in Seattle, WA, is the recognized
leader in the streaming media market. 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. RealNetworks can be found on the World Wide Web at
www.real.com.