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RealNetworks and Sonos Team to Offer First Multi-Room Digital Music Service

Rhapsody Will Be Available Via Sonos Digital Music System in March
See the Demo at CES; Sonos & RealNetworks Booths in LVCC South Hall

SEATTLE & SANTA BARBARA, Calif. — January 5, 2005 — Sonos, Inc., the developer of the award-winning Sonos Digital Music System, and RealNetworks (Nasdaq: RNWK), the leading creator of digital media services and software, today announced a partnership to integrate and promote the leading Rhapsody online music service with the Sonos Digital Music System. Today’s news marks the first time that a legal digital music service has been made available for use in multi-room environments. With Sonos and Rhapsody, consumers will now have the flexibility to enjoy multiple Rhapsody streams in different areas of the home, and for the first time, control it all from the palm of their hand.

The Sonos Digital Music System is the first and only multi-zone digital music system with a wireless, full-color LCD screen controller that lets consumers play all their digital music, all over their home, and control it all from the palm of their hand. Sonos customers with a Rhapsody subscription will now have easy access to their personalized Rhapsody library using their Sonos Controller and will be able to play the Rhapsody music over multiple Sonos ZonePlayers throughout the home perfectly synchronized. Subscribers will be able to browse and select their favorite music, playlists and Internet radio stations and will be able to view the track information and album art.

“We are delighted to offer our customers the ultimate Internet jukebox with access to the Rhapsody music service,” said John MacFarlane, CEO, Sonos, Inc. “The flexibility and ease-of-use of the Sonos Digital Music System complements the service Rhapsody provides — the ability to instantly access a library of more than 65,000 CDs virtually anytime the consumer wants, throughout their entire home, putting the ultimate music collection right in the palm of their hand.”

“The Sonos/Rhapsody combination is a highly compelling offering that enables consumers to enjoy Rhapsody in a completely new way,” said Rob Glaser, chairman and CEO, RealNetworks. “Now, with the touch of a button, Sonos customers have total control and can enjoy Rhapsody all over their house. We’re excited to be working with Sonos and think the relationship is harmonious for both companies.”

The Rhapsody service will be offered via a free firmware upgrade to Sonos Digital Music System owners in March 2005. As part of the agreement, all Sonos Digital Music System owners will receive a 30-day free trial of the Rhapsody service.

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Sonos and Rhapsody are both showcasing the new offering at the 2005 International Consumer Electronics Show in Las Vegas, NV. For a demo, please visit Sonos’ booth in the Las Vegas Convention Center South Hall Booth 26813 or RealNetworks’ booth in the Las Vegas Convention Center South Hall Booth 30337.

The Sonos Digital Music System will be sold online and at select retailers. Each ZonePlayer will retail for $499.00. Each Controller will retail for $399.00. Sonos will offer an introductory bundle of two ZonePlayers and a Controller for $1,199.00. To find out more about the Sonos Digital Music System or place an order, please visit www.sonos.com.

Rhapsody offers a simple and legal way to enjoy digital music online with unlimited access to a vast library of more than 850,000 full-length songs and 65,000 albums. Rhapsody subscribers have the ability to easily purchase their favorite tunes for just 79 cents per song, create their own commercial-free Internet radio stations, enjoy professionally programmed genre-specific stations, browse extensive music information and review editorial recommendations.

About Sonos, Inc.
Sonos has a team of highly-talented, music-loving software developers, audio engineers, hardware engineers, industrial and interactive designers, and usability engineers. Working side-by-side, they’ve created the Sonos Digital Music System, the first and only multi-room digital music system with a wireless, full-color LCD screen controller. Sonos is a privately-held company, headquartered in Santa Barbara, CA with offices in Cambridge, MA. To find out more about the company or the Sonos Digital Music System, please visit: www.sonos.com.

About RealNetworks
RealNetworks, Inc. is the leading creator of digital media services and software including the award-winning Rhapsody Internet jukebox service and RealPlayer 10, the first digital media player to integrate finding, organizing, buying, playing and managing digital audio and video in a single product. Consumers can access and experience audio/video programming and download RealNetworks’ consumer software at www.real.com. Broadcasters, network operators, media companies and enterprises use RealNetworks’ products and services to create and deliver digital media to PCs, mobile phones and consumer electronics devices. RealNetworks’ corporate information is located at www.realnetworks.com.

Media Contact:
Thomas Meyer
Sonos, Inc.
714.389.4639 — office
949.212.6201 — mobile
Thomas.meyer@sonos.com

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Matt Graves
RealNetworks
415.934.2159 — office
415.290.3503 — mobile
mgraves@real.com

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