EXHIBIT 99.1

REALNETWORKS ANNOUNCES THIRD QUARTER 2012 RESULTS

SEATTLE – October 30, 2012 – RealNetworks, Inc. (Nasdaq: RNWK) today announced results for the third quarter ended Sept. 30, 2012.

Quarterly Summary:

• Revenue of $59.1 million

• Net loss of $(22.2) million or $(0.63) per share

• Adjusted EBITDA of $(6.0) million

• Cash and short term investments of $273.7 million as of Sept. 30, 2012

“We are working hard to put RealNetworks on a path to growth and profitability,” said Rob Glaser, Chairman and interim CEO of RealNetworks. “We have made progress and have a strategy that we are in the process of implementing.”

Third Quarter Results

For the third quarter of 2012, revenue was $59.1 million, a sequential decrease of 10% from the second quarter of 2012, and a decrease of 30% compared with the third quarter of 2011. Revenue trends in each of RealNetworks’ businesses in the third quarter of 2012 compared with the year-earlier quarter were: a 6% decrease in Emerging Products revenue to $10.1 million, a 33% decrease in Core Products revenue to $34.1 million, and a 35% decrease in Games revenue to $14.9 million.

Net loss for the third quarter of 2012 was $(22.2) million, or $(0.63) per share, compared with a net loss of $(5.2) million, or $(0.15) per share, in the third quarter of 2011. Net loss for the most-recent quarter included restructuring charges of $11.0 million primarily for employee severance costs, costs associated with the transfer of some SaaS contracts to Livewire Mobile, Inc., and a loss on excess office facilities; and $2.2 million in gains on the sale of a portion of the company’s investment in LoEn Entertainment, Inc. RealNetworks’ share of Rhapsody losses increased to $(1.6) million in the third quarter of 2012 from $(1.4) million in the third quarter of 2011.

Adjusted EBITDA loss for the third quarter was $(6.0) million, compared with adjusted EBITDA of $4.1 million for the third quarter of 2011. A reconciliation of GAAP operating income and loss to adjusted EBITDA is provided in the financial tables that accompany this release.

As of Sept. 30, 2012, RealNetworks had $273.7 million in unrestricted cash, cash equivalents and short-term investments, of which approximately $40.8 million is held in foreign jurisdictions, compared with cash of $185.1 million at Dec. 31, 2011. The increase in the cash balance reflects the proceeds from the sale of patent assets to Intel in the second quarter of 2012 and other asset sales in the second and third quarters of 2012, partially offset by cash used in operations and restructuring expenses over the first three quarters of the year. In addition, RealNetworks had $46.9 million in restricted cash and available-for-sale securities as of Sept. 30, 2012.

1

Segment Operating Results

	2012			2012			2011
	Q3			Q2			Q3
	(in thousands)
Revenue
Core Products	$	34,078		$	38,250		$	50,705
Emerging Products		10,134			9,913			10,764
Games		14,876			17,363			22,945
Corporate		—			—			—
Total	$	59,088		$	65,526		$	84,414
Operating Income (loss)
Core Products	$	1,180		$	4,140		$	8,815
Emerging Products		(152	)		1,021			(2,033	)
Games		(1,708	)		(1,302	)		1,589
Corporate		(22,495	)		100,309			(11,854	)
Total	$	(23,175	)	$	104,168		$	(3,483	)
Adjusted EBITDA
Core Products	$	3,736		$	6,628		$	11,617
Emerging Products		158			1,266			(1,711	)
Games		(894	)		(619	)		2,275
Corporate		(9,042	)		(13,784	)		(8,094	)
Total	$	(6,042	)	$	(6,509	)	$	4,087

Business Outlook

For the fourth quarter of 2012, RealNetworks expects revenue of $60.0 million to $63.0 million. The company expects revenue from Core Products to increase, revenue from Emerging Products to be flat and revenue from Games to decline sequentially. Year-over-year, revenue is expected to decline in all segments. RealNetworks expects to report a fourth-quarter adjusted EBITDA loss of $(4.0) million to $(7.0) million.

The foregoing forward-looking statements reflect RealNetworks’ expectations as of October 30, 2012. It is not RealNetworks’ general practice to update these forward-looking statements until its next quarterly results announcement.

2

Webcast and Conference Call Information

The company will host an audio Webcast conference call to review results and discuss the company’s operations for the third quarter at 5:00 p.m. ET on October 30. The Webcast will be available at: http://investor.realnetworks.com.

Webcast participants will need RealPlayer^® to hear the webcast, which can be downloaded at www.real.com.

The on-demand Webcast will be available beginning approximately two hours following the conclusion of the live Webcast.

Conference Call Details

5 p.m. ET / 2 p.m. PT

Dial in:

888-790-3162 Domestic

415-228-4854 International

Passcode: Third Quarter Earnings

Leader: Rob Glaser

Telephonic replay will be available until 8 p.m. ET, Nov. 13, 2012.

Replay dial in:

866-425-0182 Domestic

203-369-0874 International

For More Information:

Marj Charlier, Investor Relations at RealNetworks, Inc.

206-892-6785 or mcharlier@realnetworks.com

Press Only:

Barbara Krause, Krause Taylor Associates for RealNetworks, Inc.

408-981-2429 or barbara@krause-taylor.com.

About RealNetworks:

RealNetworks creates innovative applications and services that make it easy to connect with and enjoy digital media. RealNetworks invented the streaming media category in 1995 and continues to connect consumers with their digital media both directly and through partners, aiming to support every network, device, media type and social network. RealNetworks’ corporate information is located at http://www.realnetworks.com.

About Non-GAAP Financial Measures:

To supplement RealNetworks’ condensed consolidated financial statements presented in accordance with GAAP in this press release, the company also discloses certain non-GAAP financial measures, including adjusted EBITDA and adjusted EBITDA by reporting segment, which management believes provide investors with useful information.

In the financial tables of our earnings press release, RealNetworks has included reconciliations of GAAP operating income (loss) to adjusted EBITDA and to adjusted EBITDA by reporting segment.

The rationale for management’s use of non-GAAP measures is included in the supplementary materials presented with the Third quarter earnings materials. Please refer to Exhibit 99.2 (“Information Regarding Non-GAAP Financial Measures”) to the company’s report on Form 8-K, which is being submitted today to the SEC.

3

Forward-Looking Statements: This press release contains forward-looking statements that involve risks and uncertainties, including statements relating to RealNetworks’ current expectations for total and segment revenue; adjusted EBITDA; the development of its business plans; and the implementation of a strategy for growth and profitability. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements. Actual results may differ materially from the results predicted. Factors that could cause actual results to differ from the results predicted include: RealNetworks’ ability to realize operating efficiencies, growth and other benefits from the implementation of its strategic initiatives; the emergence of new entrants and competition in the market for digital media products and services; other competitive risks, including the growth of competing technologies, products and services; the potential outcomes and effects of claims and legal proceedings on RealNetworks’ business, prospects, financial condition or results of operations; risks associated with key customer or strategic relationships, business acquisitions and the introduction of new products and services; changes in consumer and advertising spending in response to disruptions in the global financial markets; fluctuations in foreign currencies; and changes in RealNetworks’ effective tax rate. More information about potential risk factors that could affect RealNetworks’ business and financial results is included in RealNetworks’ annual report on Form 10-K for the most recent year ended December 31, its quarterly reports on Form 10-Q and in other reports and documents filed by RealNetworks from time to time with the Securities and Exchange Commission. The preparation of RealNetworks’ financial statements and forward-looking financial guidance requires the company to make estimates and assumptions that affect the reported amount of assets and liabilities and the reported amounts of revenues and expenses during the reported period. Actual results may differ materially from these estimates under different assumptions or conditions. The company assumes no obligation to update any forward-looking statements or information, which are in effect as of their respective dates.

RealNetworks, RealPlayer and GameHouse are trademarks or registered trademarks of RealNetworks, Inc. or its subsidiaries. All other companies or products listed herein are trademarks or registered trademarks of their respective owners.

4

RealNetworks, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(Unaudited)

	Quarters Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
	(in thousands, except per share data)
Net revenue	$	59,088		$	84,414		$	191,578		$	255,467
Cost of revenue		25,244			31,816			78,633			94,548
Gross profit		33,844			52,598			112,945			160,919
Sale of patents and other technology assets, net of costs (A)		—			—			116,353			—
Operating expenses:
Research and development		15,321			16,496			49,167			54,200
Sales and marketing		21,972			28,625			68,462			85,958
General and administrative		8,759			10,522			35,103			27,018
Restructuring and other charges		10,724			438			13,872			7,850
Loss (gain) on excess office facilities		243			—			243			(174	)
Total operating expenses		57,019			56,081			166,847			174,852
Operating income (loss)		(23,175	)		(3,483	)		62,451			(13,933	)
Other income (expenses):
Interest income, net		164			672			1,033			1,362
Gain (loss) on sale of equity and other investments, net		2,210			—			5,288			—
Equity in net loss of Rhapsody investment		(1,613	)		(1,440	)		(4,095	)		(5,739	)
Other income (expense), net		248			(228	)		1,674			(661	)
Total other income (expense), net		1,009			(996	)		3,900			(5,038	)
Income (loss) before income taxes		(22,166	)		(4,479	)		66,351			(18,971	)
Income tax (expense) benefit		(48	)		(703	)		(24,583	)		(5,365	)
Net income (loss)	$	(22,214	)	$	(5,182	)	$	41,768		$	(24,336	)
Basic net income (loss) per share	$	(0.63	)	$	(0.15	)	$	1.20		$	(0.71	)
Diluted net income (loss) per share	$	(0.63	)	$	(0.15	)	$	1.19		$	(0.71	)
Shares used to compute basic net income (loss) per share		34,998			34,199			34,747			34,081
Shares used to compute diluted net income (loss) per share		34,998			34,199			35,000			34,081

(A) On April 5, 2012, RealNetworks completed the sale of certain patents and other technology assets to Intel for a cash purchase of $120.0 million.

5

RealNetworks, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Unaudited)

	September 30, 2012		December 31, 2011
	(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	170,702	$	106,333
Short-term investments		103,046		78,739
Trade accounts receivable, net		35,716		41,165
Deferred costs, current portion		1,910		1,424
Prepaid expenses and other current assets		19,901		21,902
Total current assets		331,275		249,563
Equipment, software, and leasehold improvements, at cost:
Equipment and software		100,053		104,352
Leasehold improvements		26,184		25,947
Total equipment, software, and leasehold improvements		126,237		130,299
Less accumulated depreciation and amortization		93,287		92,825
Net equipment, software, and leasehold improvements		32,950		37,474
Restricted cash equivalents and investments		10,064		10,168
Equity method investments		3,703		7,798
Available for sale securities		36,819		37,204
Other assets		3,197		2,954
Deferred costs, non-current portion		170		843
Deferred tax assets, net, non-current portion		4,566		18,419
Other intangible assets, net		4,085		7,169
Goodwill		6,375		6,198
Total assets	$	433,204	$	377,790
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	21,350	$	17,151
Accrued and other liabilities		62,215		59,194
Deferred revenue, current portion		11,558		11,835
Accrued loss on excess office facilities, current portion		747		596
Total current liabilities		95,870		88,776
Deferred revenue, non-current portion		159		195
Accrued loss on excess office facilities, non-current portion		1,229		2,151
Deferred rent		2,712		2,944
Deferred tax liabilities, net, non-current portion		1,085		1,443
Other long-term liabilities		10,290		10,994
Total liabilities		111,345		106,503
Shareholders’ equity		321,859		271,287
Total liabilities and shareholders’ equity	$	433,204	$	377,790

6

RealNetworks, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	Nine Months Ended September 30,
	2012			2011
	(in thousands)
Cash flows from operating activities:
Net income (loss)	$	41,768		$	(24,336	)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization		12,478			12,519
Stock-based compensation		6,419			9,086
Loss (gain) on disposal of equipment, software, and leasehold improvements		1,965			81
Equity in net loss of Rhapsody investment		4,095			5,739
Excess tax benefit from stock option exercises		—			(57	)
Deferred income taxes, net		22,399			(429	)
Gain on sale of patent and other technology assets, net of costs		(116,353	)		—
Gain on sale of equity and other investments, net		(5,288	)		—
Realized translation gain		(1,968	)		—
Other		—			(19	)
Net change in certain operating assets and liabilities		3,735			(9,960	)
Net cash provided by (used in) operating activities		(30,750	)		(7,376	)
Cash flows from investing activities:
Purchases of equipment, software, and leasehold improvements		(6,478	)		(6,013	)
Proceeds from sale of patents and other technology assets, net of costs		116,353			—
Proceeds from sale of equity and other investments		7,244			—
Purchases of short-term investments		(76,191	)		(77,078	)
Proceeds from sales and maturities of short-term investments		51,885			95,104
Decrease (increase) in restricted cash equivalents and investments, net		103			(141	)
Payment of acquisition costs, net of cash acquired		—			(2,888	)
Net cash provided by (used in) investing activities		92,916			8,984
Cash flows from financing activities:
Proceeds from issuance of common stock (stock options and stock purchase plan)		3,240			1,940
Tax payments from shares withheld upon vesting of restricted stock		(964	)		—
Excess tax benefit from stock option exercises		—			57
Payment of common stock cash dividend		—			(136,793	)
Net cash provided by (used in) financing activities		2,276			(134,796	)
Effect of exchange rate changes on cash and cash equivalents		(73	)		(19	)
Net increase (decrease) in cash and cash equivalents		64,369			(133,207	)
Cash and cash equivalents, beginning of period		106,333			236,018
Cash and cash equivalents, end of period	$	170,702		$	102,811

7

RealNetworks, Inc. and Subsidiaries

Supplemental Financial Information

(Unaudited)

	2012						2011
	Q3		Q2		Q1		Q4		Q3		Q2		Q1
			(in thousands)
Net Revenue by Line of Business:
Core Products (A)	$	34,078	$	38,250	$	37,697	$	46,693	$	50,705	$	45,735	$	48,107
Emerging Products (B)		10,134		9,913		10,159		11,974		10,764		12,717		11,135
Games (C)		14,876		17,363		19,108		21,552		22,945		25,300		28,059
Total net revenue	$	59,088	$	65,526	$	66,964	$	80,219	$	84,414	$	83,752	$	87,301
Core Products Revenue by Product:
SaaS (D)	$	20,697	$	23,286	$	23,463	$	28,255	$	30,381	$	30,216	$	30,526
Systems Integration / Professional Services (E)		247		965		426		771		3,844		388		1,840
Technology Licensing (F)		6,079		7,189		6,207		9,246		6,250		6,508		6,425
Consumer Subscriptions (G)		7,055		6,810		7,601		8,421		10,230		8,623		9,316
Total Core Products net revenue	$	34,078	$	38,250	$	37,697	$	46,693	$	50,705	$	45,735	$	48,107
Net Revenue by Geography:
United States	$	29,101	$	28,614	$	31,814	$	37,298	$	38,969	$	41,984	$	44,469
Rest of world		29,987		36,912		35,150		42,921		45,445		41,768		42,832
Total net revenue	$	59,088	$	65,526	$	66,964	$	80,219	$	84,414	$	83,752	$	87,301
Product Metrics (subscribers and ICM presented as greater than):
Addressable subscribers of mobile operators under contract (H)		700,000		725,000		725,000		725,000		700,000		775,000		775,000
SaaS subscribers (I)		26,500		30,600		30,500		30,050		34,000		34,550		35,900
Monthly SaaS ARPU (in cents) (J)	$	0.17	$	0.16	$	0.15	$	0.19	$	0.17	$	0.18	$	0.18
ICM delivered in billions (K)		173		162		166		165		162		157		151
Consumer subscribers (L)		350		350		400		425		500		475		500

Net Revenue by Line of Business:

(A) The Core Products segment primarily includes revenue from SaaS services, system integration and professional services to carriers and mobile handset companies, sales of technology licenses of our software products such as Helix for handsets, consumer subscriptions such as SuperPass and our international radio subscription services.

(B) The Emerging Products segment primarily includes revenue from RealPlayer and related products, such as the distribution of third party software products, advertising on RealPlayer websites and sales of RealPlayerPlus software licenses to consumers.

(C) The Games segment primarily includes revenue from sales of games licenses, online games subscription services, advertising on game sites and social network sites, games syndication services, microtransactions from online and social games and sales of mobile games.

Core Products Revenue by Product:

(D) Software as a Service (SaaS) revenue includes revenue from music on demand (MOD), video on demand (VOD), ringtones, ringback tones (RBT) and intercarrier messaging services provided to network service providers, who are largely mobile phone networks.

(E) Systems Integrations / Professional Services revenue includes professional services, other than those associated with software sales, provided to mobile carriers and handset manufacturers.

(F) Technology Licensing includes revenue from sales of software and other intellectual property licenses such as Helix server licenses and Helix software licenses for handsets.

(G) Consumer Subscriptions includes revenue from SuperPass as well as our international radio subscription services.

Product Metrics:

(H) Total subscribers reported at the end of the quarter of mobile carriers that offer one or more of our SaaS services, other than intercarrier messaging services, to their customers.

(I) SaaS subscribers include RBT, MOD and VOD services, measured at the end of the quarter.

(J) Monthly SaaS ARPU (Average Revenue Per User) is calculated by dividing (a) the total quarterly revenue from SaaS subscription services, including RBT, MOD, VOD, by (b) the number of SaaS subscribers at the end of the quarter, and dividing the resulting quotient by three.

(K) ICM (Intercarrier message) represents the total number of messages delivered across our messaging platform during the quarter.

(L) Consumer subscribers primarily includes our SuperPass and GamePass products.

8

RealNetworks, Inc. and Subsidiaries

Segment Results of Operations

(Unaudited)

	2012						2011			2012			2011
	Q3			Q2			Q3			YTD			YTD
	(in thousands)
Core Products
Net revenue	$	34,078		$	38,250		$	50,705		$	110,025		$	144,547
Cost of revenue		17,323			17,681			22,492			52,832			62,829
Gross profit		16,755			20,569			28,213			57,193			81,718
Gross margin		49	%		54	%		56	%		52	%		57	%
Operating expenses		15,575			16,429			19,398			50,072			57,958
Operating income (loss)	$	1,180		$	4,140		$	8,815		$	7,121		$	23,760
Adjusted EBITDA	$	3,736		$	6,628		$	11,617		$	14,764		$	31,777
Emerging Products
Net revenue	$	10,134		$	9,913		$	10,764		$	30,206		$	34,616
Cost of revenue		2,041			1,800			3,913			5,946			8,431
Gross profit		8,093			8,113			6,851			24,260			26,185
Gross margin		80	%		82	%		64	%		80	%		76	%
Operating expenses		8,245			7,092			8,884			22,883			28,144
Operating income (loss)	$	(152	)	$	1,021		$	(2,033	)	$	1,377		$	(1,959	)
Adjusted EBITDA	$	158		$	1,266		$	(1,711	)	$	2,178		$	(1,192	)
Games
Net revenue	$	14,876		$	17,363		$	22,945		$	51,347		$	76,304
Cost of revenue		4,936			5,572			7,197			17,169			23,771
Gross profit		9,940			11,791			15,748			34,178			52,533
Gross margin		67	%		68	%		69	%		67	%		69	%
Operating expenses		11,648			13,093			14,159			38,171			46,184
Operating income (loss)	$	(1,708	)	$	(1,302	)	$	1,589		$	(3,993	)	$	6,349
Adjusted EBITDA	$	(894	)	$	(619	)	$	2,275		$	(1,837	)	$	8,363
Corporate
Net revenue	$	—		$	—		$	—		$	—		$	—
Cost of revenue		944			909			(1,786	)		2,686			(483	)
Gross profit		(944	)		(909	)		1,786			(2,686	)		483
Gross margin		N/A			N/A			N/A			N/A			N/A
Gain on sale of patents and other technology assets, net of costs		—			117,933			—			116,353			—
Operating expenses		21,551			16,715			13,640			55,721			42,566
Operating income (loss)	$	(22,495	)	$	100,309		$	(11,854	)	$	57,946		$	(42,083	)
Adjusted EBITDA	$	(9,042	)	$	(13,784	)	$	(8,094	)	$	(35,073	)	$	(25,097	)
Total
Net revenue	$	59,088		$	65,526		$	84,414		$	191,578		$	255,467
Cost of revenue		25,244			25,962			31,816			78,633			94,548
Gross profit		33,844			39,564			52,598			112,945			160,919
Gross margin		57	%		60	%		62	%		59	%		63	%
Gain on sale of patents and other technology assets, net of costs		—			117,933			—			116,353			—
Operating expenses		57,019			53,329			56,081			166,847			174,852
Operating income (loss)	$	(23,175	)	$	104,168		$	(3,483	)	$	62,451		$	(13,933	)
Adjusted EBITDA	$	(6,042	)	$	(6,509	)	$	4,087		$	(19,968	)	$	13,851

9

RealNetworks, Inc. and Subsidiaries

Reconciliation of segment GAAP operating income (loss) to adjusted EBITDA by reporting segment

(Unaudited)

	2012						2011			2012			2011
	Q3			Q2			Q3			YTD			YTD
	(in thousands)
Core Products
Reconciliation of segment GAAP operating income (loss) to adjusted EBITDA by reporting segment:
Operating income (loss)	$	1,180		$	4,140		$	8,815		$	7,121		$	23,760
Acquisitions related intangible asset amortization		796			786			833			2,384			2,017
Depreciation and amortization		1,760			1,702			1,969			5,259			6,000
Adjusted EBITDA	$	3,736		$	6,628		$	11,617		$	14,764		$	31,777
Emerging Products
Reconciliation of segment GAAP operating income (loss) to adjusted EBITDA by reporting segment:
Operating income (loss)	$	(152	)	$	1,021		$	(2,033	)	$	1,377		$	(1,959	)
Acquisitions related intangible asset amortization		62			79			79			220			132
Depreciation and amortization		248			166			243			581			635
Adjusted EBITDA	$	158		$	1,266		$	(1,711	)	$	2,178		$	(1,192	)
Games
Reconciliation of segment GAAP operating income (loss) to adjusted EBITDA by reporting segment:
Operating income (loss)	$	(1,708	)	$	(1,302	)	$	1,589		$	(3,993	)	$	6,349
Acquisitions related intangible asset amortization		171			207			257			587			767
Depreciation and amortization		643			476			429			1,569			1,247
Adjusted EBITDA	$	(894	)	$	(619	)	$	2,275		$	(1,837	)	$	8,363
Corporate
Reconciliation of segment GAAP operating income (loss) to adjusted EBITDA by reporting segment:
Operating income (loss)	$	(22,495	)	$	100,309		$	(11,854	)	$	57,946		$	(42,083	)
Other income (expense), net		248			(49	)		(228	)		1,674			(661	)
Depreciation and amortization		636			628			593			1,878			1,721
Restructuring and other charges		10,724			1,539			438			13,872			7,850
Stock-based compensation		1,602			1,722			2,957			5,667			8,250
Gain on sale of patents and other technology assets, net of costs		—			(117,933	)		—			(116,353	)		—
Loss (Gain) on excess office facilities		243			—			—			243			(174	)
Adjusted EBITDA	$	(9,042	)	$	(13,784	)	$	(8,094	)	$	(35,073	)	$	(25,097	)
Total
Reconciliation of GAAP operating income (loss) to adjusted EBITDA:
Operating income (loss)	$	(23,175	)	$	104,168		$	(3,483	)	$	62,451		$	(13,933	)
Other income (expense), net		248			(49	)		(228	)		1,674			(661	)
Acquisitions related intangible asset amortization		1,029			1,072			1,169			3,191			2,916
Depreciation and amortization		3,287			2,972			3,234			9,287			9,603
Loss (Gain) on excess office facilities		243			—			—			243			(174	)
Restructuring and other charges		10,724			1,539			438			13,872			7,850
Stock-based compensation		1,602			1,722			2,957			5,667			8,250
Gain on sale of patents and other technology assets, net of costs		—			(117,933	)		—			(116,353	)		—
Adjusted EBITDA	$	(6,042	)	$	(6,509	)	$	4,087		$	(19,968	)	$	13,851

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