RealNetworks Acquires Netzip

RealNetworks (http://www.realnetworks.com) announced it has acquired privately-held Netzip, Inc. ( http://www.netzip.com), a developer of Internet download software.

RealNetworks acquired Netzip 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. Netzip is now wholly-owned by RealNetworks.

Netzip makes Download Demon, software that helps users download files over the Internet. It also makes Netzip Classic, a utility for file compression, transfer and management and FastView, a file format viewer for viewing multimedia files. "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."

Netzip's two co-founders, Boris Jerkunica, CEO and Phil Hill, VP Marketing, will be joining RealNetworks to continue to oversee the Netzip business.

"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," said Jerkunica.

Netzip will be relocating from Atlanta, GA to Seattle, WA, and the majority of existing Netzip employees will join RealNetworks.