On2 Technologies Demonstrates Several Customer Products and VP7 at CES

On2 Technologies Demonstrates Several Customer Products and VP7 at CES

Company Will Hold Conference Call to Review Announcements

NEW YORK, Jan. 6 /PRNewswire-FirstCall/ -- On2 Technologies, Inc, The Duck Corporation (AMEX:ONT), today announced that the company had launched several new product initiatives with customers at the Consumer Electronics Show (CES) in Las Vegas. The company also made the U.S. public debut of its new TrueMotion VP7 codec.

Among the On2 technology being displayed at the show are:

* IBM VideoCharger 8 system serving TrueMotion VP6-encoded files
(http://www.ibm.com/software/data/videocharger/) VideoCharger is IBM's
streaming media product and delivers a wide range of services for
corporate customers. IBM and On2 have completed integration work so that
the VideoCharger can stream On2's TrueMotion VP6 codec.

* Leapfrog Leapster Multimedia Learning System playing TrueMotion
VP6-encoded video.
(http://www.leapfrog.com/do/findproduct?ageGroupKey=preschool&key=leapster)
The new Leapster cartridges use TrueMotion VP6 to enable video viewing
on this children's interactive game and learning system.

* AOL NSV Live encoding product with On2 TrueMotion compression. This is
the launch of On2's collaboration with AOL to supply a new TrueMotion
NSV encoder that will compress files for playback in the widely
distributed AOL MediaPlayer and Winamp Player. On2 plans to begin
selling this product in the next several months.

* As previously announced, XM Satellite Radio will use On2's TrueMotion
VP6 video compression technology in XM's in-vehicle prototype video
entertainment system. A demonstration of this product is available at
the XM Radio CES booth, and is also being shown at the Delphi
Electronics booth. On2 will also show the XM system in its suite at the
MGM Grand hotel. CES attendees who are interested in visiting the On2
suite can call (646) 256-0029 to make an appointment.

* Demonstration of high-definition TrueMotion VP6 playback on an Equator
DSP. This product allows customers to get true high-definition on a
competitively priced DSP at a datarate of 4 megabits per second instead
of the 20-plus megabits required by MPEG-2.

* On2 VP6 Communicator videoconferencing solution for personal and
enterprise implementations (http://www.on2.com/communicator.php3). This
new product uses TrueMotion VP6 and technology from Gatelinx Corporation
and is being demonstrated for corporate customers and ISPs.

* On2 TrueMotion-encoded video played back on a television using a DSP-
based set-top box. On2's latest implementation of the NineLanes set-top
is targeted at ADSL streaming for live TV and VOD.



On2 will also unveil its new TrueMotion VP7 codec to the U.S. market at CES. TrueMotion VP7 performs up to 35% better than VP6 at the same datarates and offers a very substantial improvement over the performance of H.264, Windows Media, Real 10, and DivX. In the weeks following CES, On2 will make content encoded in TrueMotion VP7 available on its web site.

"This is the largest group of customers and products that we have announced at one time," said Douglas A. McIntyre, On2's Chairman, President and Chief Executive Officer. "If customers look at the versatility of these applications, from satellite streaming, to enterprise content management, to ISP and PC applications, to children's toy platforms, set-tops and video conferencing, we believe that they will see why the On2 video compression is considered the best and most versatile in the world," Mr. McIntyre added.

On2 will host a conference call today at 5 PM Eastern to discuss these new customers and products, and to review how they fit into the company's 2005 plans. The conference call information is as follows:

Event Date: January 6, 2005
Event Time: 5:00 PM Eastern
Event Title: On2 CES Conference Call
Webcast URL: http://www.vcall.com/CEPage.asp?ID=90184
Live Participant Dial In (Toll Free): 877-407-9210

Replay Number (Toll Free): 877-660-6853
Replay Passcodes (both required for playback):
Account #: 1628
Conference ID #: 132832
Teleconference Replay Available Until: 1/7/05 11:59 PM
Webcast Replay Available Until: 01/06/2006

About On2 Technologies, The Duck Corporation


On2 Technologies (AMEX:ONT) is a leading technology firm at the forefront of video compression. The company revolutionized digital media delivery with the creation of its advanced full-motion, full-screen, TrueMotion(R) VP4/VP5/VP6 compression and streaming technologies. On2's TrueMotion codecs are used extensively in the video-on-demand, videoconferencing, Internet media, surveillance, and store-and-play markets. They operate with On2's own TrueCast Server and Player software, as well as third-party player and server products. On2's software is used by such leading companies as Sony, NTT, AOL, BBC, ABC News, Nullsoft, SeaChange International, China Netcom, NHK, and Nanwang Multimedia. The VP6 decoder has an installation base of millions through its inclusion in AOL 9 Media Player, Winamp 5, Viewpoint Media Player, and others. On2 licenses its software for use in set-top boxes, consumer electronics devices and wireless applications and offers high-level video encoding, customized technical support, and consulting/integration services. Located in New York City, the company has an office in Clifton Park, NY, and operations in Cambridge, UK. To contact On2 write to sales@on2.com or visit http://www.on2.com/.


Source: On2 Technologies, Inc

CONTACT: Chris Schapdick of On2 Technologies, Inc, +1-646-256-0029

Web site: http://www.on2.com/


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