Kulabyte(TM) and On2 Technologies Announce Improved Publishing Solutions for On2 VP6(TM) for Adobe® Flash® Video for Social Networking and User Generated Content

On2 VP6 encoding for multi-processor PCs brings speed and quality benefits to consumers and service providers through KulaByte's TimeSlice(TM) technology

LAS VEGAS, April 17 -- On2 Technologies, Inc., (AMEX:ONT), the leading provider of video compression software and solutions, and Kulabyte, a leading provider of advanced audio and video processing technologies, announced today from NAB 2007 an agreement to integrate KulaByte's TimeSlice(TM) technology with On2's VP6 for Flash video based personal and professional grade desktop encoding and publishing solutions. This announcement comes at the heels of a recent announcement of On2 VP6 licensing to Kulabyte for server based encoding.

"Bringing the power of KulaByte's multi-core video processing capabilities and exponential increase in encoding speed to consumers' desktops is a major benefit to consumers who actively participate in creation and publishing of user generated content and social networking videos," said Bill Joll, president and CEO of On2 Technologies. "As desktop PCs increasingly become multi-core, the combination of Kulabyte's technology with On2 VP6 for Flash will leverage these multi-core machines to the benefit of their owners. Given the popularity and amount of Flash video being used for such applications, this provides valuable time and resource efficiencies to users and service providers."

The personal encoding suite of products for VP6 for Flash is the first implementation of KulaByte's acceleration technology in a consumer grade software package. Deployment will include products for social network platforms, PC's, and mobile devices such as PDA's and smart phones. KulaByte's patent-pending multi-core encoding technology achieves significantly faster encoding speeds and higher quality video than standard encoding allows. The advantages of faster encoding derived from KulaByte's technology are particularly desirable for time sensitive content such as news, sports and live broadcasting.

"Despite increase in broadband speeds, video quality on the web suffers on account of encoding times and upload speeds," said Chris Gottschalk, chief technology officer of KulaByte. "On2 and KulaByte are setting a milestone for convenience and quality that consumers can achieve with their video creation and sharing, whether that be for web, mobile or targeted video devices."

On2 VP6 for Flash is becoming the dominant format for Internet video, licensed by Adobe for Adobe® Flash® Player 8 and 9. On2 provides the broadest range of encoding and publishing tools of any format within its Flix® branded products, increasingly aiding the adoption of VP6 based Flash video.

Kulabyte's TimeSlice(TM) technology delivers faster than real-time encoding, noticeably improved picture quality and significant bandwidth savings. Digital media creators can encode, and distribute digital content at speeds more than 12 times faster than standard industry platforms at comparable prices. The suite of KulaByte enabled desktop VP6 products will begin shipping at the beginning of Q3, 2007.

KulaByte and On2 are jointly demonstrating their technologies at the KulaByte booth (#SL13713) at the National Association of Broadcasters (NAB) show in Las Vegas, April 16-19, 2007. Executives from KulaByte and On2 are available at the booth to meet with press and customers.

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 Kulabyte

Kulabyte LLC. is a leading developer of advanced video processing technologies. Based in San Marcos, Texas, Kula Media Group's engineering and management team is focused on delivering the fastest video encoding solution in the industry, while also achieving the highest video quality available. For further information, please visit the company Web site at www.kulabyte.com

Source: On2 Technologies, Inc.


Sam Vasisht,
On2 Technologies, Inc.,

John Pepe,
Kula Media Group,
+1-512-795-4228, jpepe@kulabyte.com; or Chris Pfaff for Tech/Media LLC, +1-201-218-0262, c.pfaff@att.net

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

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