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To: Voltaire who wrote (19650)	5/21/2000 6:33:00 PM
From: Dealer	Respond to of 35685

RNWK--RealNetworks' new software expected By Bambi Francisco, CBS MarketWatch Last Update: 4:52 PM ET May 21, 2000 Internet Daily Net headlines SAN FRANCISCO (CBS.MW) -- Shares of RealNetworks could be active this week as the company is expected to deliver good news ahead of its Real Conference 2000 event, which begins Wednesday. RealNetworks could announce a new software product that combines streaming and digital music functionality, said Robert Fagin, analyst at Bear Stearns. "This buzzed around last week," he said. Today on CBS MarketWatch Fed keeps finger on trigger NTL, Telewest reportedly eye bids for ISP Freeserve Yes TV cancells IPO Paper industry battles for e-turf Granada reportedly considers United News & Media bid More top stories... CBS MarketWatch Columns Updated: 5/21/2000 1:39:08 PM ET "It would seem that if investors begin to focus on an upcoming event, that shares could get some attention," he added. Weakness in the broader market has put a lid on Internet issues. Shares of RealNetworks (RNKW: news, msgs) fell slightly on the week to just over 35, and they're down from trading as high as 50 at the start of the month. To the extent that the negative market sentiment kept investors from focusing on company fundamentals and more on market dynamics, "this event could help to clarify the RealNetworks' story," he said. RealNetworks is a leading provider of software for the transmission of digital files over the Internet. It's considered well-positioned to capitalize on the adoption of audio and video on the Internet. The only competitor to the company would be Microsoft (MSFT: news, msgs), said Fagin, who has an "attractive" rating on the stock. Even though RealNetworks has 90 percent of the streaming files, essentially, audio and video clips, Microsoft is aggressively targeting the marketplace, he added. "And it would seem logical that when all of their partners are in the same room, the company would at least talk about new products and initiatives," said Fagin. On May 24, RealNetworks kicks off its Real Conference 2000 at the San Jose McEnery Convention Center. The event will run until May 26. Rob Glaser, RealNetworks founder and chief executive, will give the opening keynote speech. Thursday, Liberate Technologies (LBRT: news, msgs) Chief Executive Mitchell Kertzman will give the opening keynote address. Friday, Seagram (VO: news, msgs) Chief Executive Edgar Bronfman Jr. will take his turn at the podium. The content delivery market will likely be a hot topic at the Real Conference. The growing "acceptance of content distribution networks to move rich media content to the 'edges' of the Internet (i.e., closer to the end-user) will result in increased demand for RealNetworks' streaming software," said Fagin. Valuation? RealNetworks trades at 25 times calendar 2000 sales. Other infrastructure stocks, such as Inktomi (INK: news, msgs), trade at 50 times calendar 2000 sales. But Inktomi is expected to grow sales by 145 percent this year; whereas, RealNetworks is expected to grow its annual sales by 88 percent to $247 million in calendar 2000.