News release

HP and RealNetworks to Develop Digital Entertainment Products for the Living Room

PALO ALTO, Calif., and SEATTLE, March 6, 2001

Hewlett-Packard Company (NYSE:HWP) and RealNetworks Inc. (Nasdaq:RNWK) today announced a collaboration to develop a family of easy-to-use digital entertainment products designed to enable consumers to download, personalize and enjoy their favorite music, streaming video and other digital content from the comfort of their living rooms.

HP will bring its consumer technology product experience to the relationship, in addition to its extensive customer base. RealNetworks will provide a Linux-based software platform incorporating RealPlayer and RealJukebox as the foundation for an up-and-coming set of digital entertainment products and services from HP that are planned to be introduced later this year.

"As the computing and entertainment worlds converge, consumers are looking for ways to enhance their entertainment experiences," said Pradeep Jotwani, president, HP Consumer Business Organization. "Extending our leading technologies from the home office into other consumer products throughout the home is a natural next step for HP. Relationships with RealNetworks and partners in Internet content will help make HP's digital entertainment vision a reality."

For RealNetworks, the leader in Internet media delivery, the relationship with HP advances the company's commitment to extend RealPlayer -- now with approximately 180 million unique registered users -- to Internet appliances and other wireless devices.

"At RealNetworks, one of our core objectives is to deliver great Internet media experiences from any platform to any device anywhere," said Len Jordan, Senior Vice President, Consumer Appliances, RealNetworks, Inc. "That's why we're excited about expanding our relationship with HP, a worldwide leader in delivering great technology through simple products. Together we are going to enable consumers to enjoy Internet media from nearly any room in their home."

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. RealNetworks' systems and corporate information is located on the Internet at http://www.realnetworks.com.

About HP

Hewlett-Packard Company -- a leading global provider of computing and imaging solutions and services -- is focused on making technology and its benefits accessible to individuals and businesses through simple appliances, useful e-services and an Internet infrastructure that's always on.

HP had total revenue from continuing operations of $48.8 billion in its 2000 fiscal year. Information about HP and its products can be found on the World Wide Web at http://www.hp.com.

This news release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause the results of HP and its consolidated subsidiaries to differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including any projections of earnings, revenues, or other financial items; any statements of the plans, strategies, and objectives of management for future operations; any statements concerning proposed new products, services, or developments; any statements regarding future economic conditions or performance; statements of belief and any statement of assumptions underlying any of the foregoing. The risks, uncertainties and assumptions referred to above include the ability of HP to retain and motivate key employees; the timely development, production and acceptance of products and services and their feature sets; the challenge of managing asset levels, including inventory; the flow of products into third-party distribution channels; the difficulty of keeping expense growth at modest levels while increasing revenues; and other risks that are described from time to time in HP's Securities and Exchange Commission reports, including but not limited to the annual report on Form 10-K for the year ended Oct. 31, 2000, and subsequently filed reports. HP does not intend to update these forward-looking statements.