Real Gets WiderThan

SEATTLE -- RealNetworks, Inc. (NASDAQ:RNWK) and WiderThan Co., Ltd. (NASDAQ:WTHN) today announced a definitive agreement under which RealNetworks will acquire WiderThan, a leading provider of integrated mobile music and entertainment solutions, through a cash tender offer for $17.05 per share or approximately $350 million.

WiderThan is a leading provider of ringback tones, music-on-demand and other mobile entertainment services to more than 50 wireless carriers in more than 25 countries including leading carriers such as SK Telecom in South Korea, Verizon Wireless in the U.S., and Bharti Airtel in India. For the six months ended June 30, 2006, WiderThan achieved $61.9 million in revenue, an increase of 39% over the same period in 2005. Net income for the first six months of 2006 was $7.4 million, an increase of 79% from the prior year, and adjusted EBITDA for the first six months of 2006 increased 64% to $14.2 million, compared to the previous year. As of June 30, 2006, WiderThan had approximately $93 million of cash, cash equivalents and short-term financial instruments.

"WiderThan is a world leader in mobile music services," said Rob Glaser, Chairman and CEO of RealNetworks. "Indeed, RealNetworks and WiderThan share a common tradition of technical innovation and end-to-end excellence in digital media. We believe the combination of RealNetworks and WiderThan will greatly enhance our digital entertainment products and services and accelerate our reach around the world."

"WiderThan has established a trusted position of delivering innovative and commercially successful digital music and entertainment services in partnership with tier 1 mobile carriers," said Sang Jun Park, CEO and Representative Director of WiderThan. "By combining with RealNetworks, we will now be able to provide wireless carrier customers with an even richer set of mobile entertainment services."

RealNetworks Inc. (Nasdaq: RNWK)