Submitted by: Real Networks, Inc.
Categories: Business Ethics
Posted: Feb 01, 2001 – 11:00 PM EST
RealNetworks®, Inc. (Nasdaq: RNWK), the global leader in media delivery on the Internet, today announced that its Board of Directors has approved a voluntary stock option exchange program for its employees.
Under the program, RealNetworks employees will be given the opportunity, if they so choose, to cancel outstanding stock options previously granted to them in exchange for an equal number of new options to be granted at a future date. The exercise price of these new options will be equal to the fair market value of the Company’s common stock at the end of August 2001. The vesting schedule of the new options will be unchanged from that of the cancelled options.
The exchange program has been structured to comply with FASB Interpretation No. 44 and accordingly, there will be no financial statement charges associated with the exchange. The Company currently has approximately 24 million options held by employees with an exercise price in excess of $10 per share. Members of the Company’s Board of Directors, including chairman and CEO Rob Glaser, as well as the Company’s CFO, Paul Bialek, will not participate in this program, and participation by other named executive officers of the Company will be limited.
RealNetworks, Inc., based in Seattle, is the global leader in media delivery on the Internet. It develops and markets software products and services designed to enable users of personal computers and other consumer electronic devices to send and receive audio, video and other multimedia services using the Web. Consumers can access and experience audio/video programming and download RealNetworks' consumer software on the Internet at http://www.real.com. RealNetworks' systems and corporate information is located on the Internet at http://www.realnetworks.com.
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