Madge.web and RealNetworks to Launch Streaming Media Network in Europe

Business Wire, Dec 21, 1999

Business Editors/Technology Writers

WEXHAM SPRINGS, United Kingdom--(BUSINESS WIRE)--Dec. 21, 1999

Jointly-branded solution will deliver new levels of rich

media content to European Internet users

Madge.web(TM), part of Madge Networks N.V. (Nasdaq/NM:MADGF), a global network solutions provider, has entered into a strategic agreement with RealNetworks(R) to build, operate and market the largest European managed network for streaming media.

Tapping into a streaming media market with more than 92 million registered users of the RealPlayer worldwide, Madge.web is constructing an Internet overlay network and broadcast operation facilities in Europe to offer similar services to the existing Real Broadcast Network(TM) (RBN) in the U.S.

The new network, to be known as the Madge Broadcast Network(TM) (MBN) powered by RealNetworks, is designed to serve European content providers as well as U.S. content providers wishing to distribute their streaming media in Europe. It is planned that the Madge Broadcast Network and the Real Broadcast Network will be interconnected to allow content to be exchanged in both directions.

"This is a positive step for the global media streaming industry," commented Alex Benik, associate analyst, data communications, The Yankee Group. "Today's IP-centric companies are recognizing that the market for streamed content is really heating up and is poised to have a break out year. Distributed content delivery networks like the Real Broadcast Network and now the Madge Broadcast Network are necessary to deliver the quality of services that companies on both sides of the Atlantic are demanding."

Robert Madge, CEO of Madge.web commented, "End user expectations of Internet content are changing. With the provision of high quality streaming media using RealSystem(R) G2 we will transform audience experience through dynamic real-time broadcasting. Our network provides a solid platform from which to grow our Internet content distribution business. RealNetworks is the market leader in streaming media technology and usage. Together we can bring the most advanced global on-line broadcast service to our customers."

Martin Plaehn, senior vice president, Media Systems, at RealNetworks explains the impact of the planned network, "With the robust integration of RealSystem G2 and its award-winning broadcasting capabilities, MBN will be strongly positioned to deliver superior, high quality streaming media services."

Supporting Madge.web's existing web services to the media, publishing and financial industries, the MBN will extend to European consumers and content providers the kind of streaming media facilities which are currently available in the U.S. MBN, powered by RealNetworks and delivered by Madge.web, will be used for streaming media ranging from large scale Internet events through to corporate presentations, shareholder meetings, advertising and entertainment programming. The broadcast network will give content providers the performance, scalability, reliability and flexibility required for the highest quality media streaming experience available on the Internet.

A new European broadcasting center will serve as the programming hub for European broadcasts from which live video, audio and multimedia feeds will be encoded, stored and transmitted. From there the content will be fed across Madge.web's pan-European IP network to the major Internet exchange points across Europe to provide high levels of streaming content for both business-to-business and consumer applications. In addition, the planned interconnect facilities with RBN in the U.S. will create a multi-continent network, allowing content providers to reach a wider audience as well as to carry out international broadcast planning, program sharing and audience reporting.

RealNetworks and Madge.web have agreed on a joint marketing program to promote the MBN services. Both companies will be cooperating on the marketing of other services of the two companies to joint customers -- such as the products of RealNetworks and the web hosting of Madge.web.

MBN powered by RealNetworks is scheduled to go live in the second quarter of 2000. Madge.web and RealNetworks plan to announce the details of the service offering early next year. Ends

About Madge.web

Madge.web's network infrastructure was launched in May 1999, delivering network services ranging from mission critical voice networking to premium service Virtual Private Networks (VPNs) and complex web hosting. These services are run over Madge's own global network, which extends to over thirty countries. This network has been designed to support business critical data flows, prevalent in the financial and media industries.

About Madge Networks N.V.

Founded in 1986, Madge Networks N.V. is a global managed network services and product solutions provider specializing in mission-critical enterprise needs. The company's goal is to optimize the implementation of enterprises' voice, video and data networks with the ultimate aim of converging all networking needs on Internet Protocol (IP) solutions. The company's main business centers are at Wexham Springs, United Kingdom and Eatontown, New Jersey. Madge Networks N.V., a company organized under the laws of the Netherlands, is the parent company of Madge Networks. Information about Madge's complete range of products and services can be accessed on the World Wide Web at www.madge.com