On2 Technologies and C2 Microsystems Announce Agreement to Bring On2 TrueMotion(R) VP6(TM) and VP7(TM) to Mass Market Consumer Devices

On2 Technologies and C2 Microsystems Announce Agreement to Bring On2 TrueMotion(R) VP6(TM) and VP7(TM) to Mass Market Consumer Devices

Networked Digital Home and Portable Consumer Devices Using C2 Microsystems' Media Processor will Support On2 TrueMotion Video - Demonstration of VP6 playback on large screen TV at ESEC show in Japan

TARRYTOWN, N.Y. and SAN JOSE, Calif., May 10 /PRNewswire-FirstCall/ -- On2 Technologies, (AMEX:ONT) a leader in video compression software and solutions, and C2 Microsystems, Inc., the leading developer of fully programmable media processor for low cost, high performance and networked media, announced today that they have reached an agreement under which C2 Microsystems will incorporate On2's market leading TrueMotion codecs into its CC1100 media processor and integrated media framework.

C2 Microsystems' fully programmable solution-on-chip (SoC) is designed for networked digital home and mobile entertainment applications. The Linux based SoC approach offers small footprint, integrated processors and media framework, which delivers high performance at low cost for high volume, mass market applications, and supports all the major digital media codecs on the market today.

On2's TrueMotion VP6 and VP7 compression schemes lead the market in terms of high quality compression at low decoding complexity for low power devices. This agreement will make highly scalable, low cost, low power video solutions available for high volume products. The two companies are targeting IPTV set top boxes (STB), portable media devices, personal video recorders (PVR), and smart network TVs from C2's customers, who are market leading brands in consumer electronics.

The two companies will demonstrate the first implementation of VP6 playback on CC1100 at the upcoming ESEC show in Tokyo, Japan, May 16-18, 2007 at C2 Microsystems' booth (East Hole 37-001). Executives from On2 and C2 will be available to meet with press and customers at the booth.

About On2 Technologies, Inc.

On2 Technologies (AMEX:ONT) is a leading technology firm at the forefront of digital video compression. The company revolutionized digital media delivery with the creation of its advanced full-motion, full-screen On2 Video compression and streaming technologies. On2 Video codecs are widely used in the Internet, video-on-demand, VoIP, and mobile media markets. On2's software is used by such leading global companies as Adobe/Macromedia, AOL, Skype, XM Satellite Radio, Sony, CTTNet, VitalStream, and Tencent. Located in Tarrytown, NY, the company has R&D offices in Clifton Park, NY, and Cambridge, UK. To contact On2, write to sales@on2.com or visit http://www.on2.com/.

About C2 Microsystems, Inc.

C2 Microsystems was founded by a group of veteran Silicon Valley entrepreneurs with the target to create the best technology in the world for digital home and mobile entertainment. C2 Microsystems is developing a family of low-cost, high performance, fully programmable SoCs, which include an integrated software development environment that is optimized for networked media from portable to high definition applications. C2's unique approach to media processing involves a blend of hardware and software implementation of all major audio and video codecs and an application framework that allows programmers total control of media applications: any codec, any quality, any resolution, anytime, anywhere. For more information, visit C2 Microsystems online at www.c2micro.com.

Trademarks mentioned in this release are property of their respective owners.

Source: On2 Technologies

CONTACT: Sam Vasisht of On2 Technologies, Inc., +1-518-724-3872, or
Svasisht@on2.com; Bin Lei of C2 Microsystems, Inc., +1-408-295-3487, or
Blei@c2micro.com

Web site:

http://www.on2.com/
http://www.c2micro.com/

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