On2 Technologies to Showcase High Definition Video Solutions at 2008 International CES

HD video for multiple web, VoIP, and mobile applications featuring On2's latest video compression innovations

TARRYTOWN, N.Y., Jan. 3 - On2 Technologies, Inc., (AMEX:ONT), a leader in video compression solutions, announced today that its showcase at the upcoming 2008 International CES in Las Vegas from January 7-10, 2008, will focus on high definition (HD) video solutions that are ushering in the next phase of web, VoIP and mobile video.

"We demonstrated very efficient HD video at CES last year, and our premise was that 2007 was going to be the year when HD becomes available for key mass market applications," said Bill Joll, president and CEO. "Before the year was out, On2 helped customers establish HD and high resolution video milestones consistent with our vision. 2008 will be the year when HD video comes to its own, and On2 is ready to bridge the world of web, VoIP and mobile video to this next frontier in video, both with our core codec technologies and our embedded Hantro products."

On2's High Definition video demonstrations will include the following highlights:

o On2's newly released TrueMotion® VP6-S(TM) codec used in Adobe®
Flash® Player 9, designed specifically to allow HD video playback in
power restricted applications, delivering 720P HD video playable on 1.7
GHz computers, and streaming HD at 1.6 Mbps.

o TrueMotion VP7.2 used in Skype video conferencing for high quality,
full screen video conferencing, capable of 720P HD video at 300kbps
with fixed camera encodes.

o On2's Hantro products embedded 6280 encoder RTL designs. Enabling real
time encoding of 720P HD video, the design is targeted for baseband and
application processors destined for mobile phones and handheld devices.

In addition, On2 will demonstrate Hantro hardware video acceleration on- chip in a feature phone. Enabling VGA resolution video playback to a TV screen, the technology matches the performance of today's cutting edge multi- chip smartphones in low-cost single chip feature phones.

"The common thread to all these innovations is making HD possible in extremely resource constrained environments and low bandwidths. We are demonstrating commercially deployed HD applications that have recently come to market, and technology platforms that will make HD video further mainstream in 2008," added Bill Joll.

The On2 Technologies booth, #11808 is located in the Content@CES Techzone, in the Central Hall at the LasVegas Convention Center. On2 executives will be available to meet at the booth throughout the show. To schedule a meeting in advance, email media@on2.com

About On2 Technologies, Inc.

On2 Technologies (AMEX:ONT) ensures a compelling video experience for any video application anywhere. From low bit rate to high definition, On2 provides optimized video compression technology enabling innovative solutions for application developers, content and service providers, chip vendors, device manufacturers, digital signage companies and beyond.

Through continual innovation, On2 satisfies the toughest quality, bandwidth, and power requirements for video. The company's proprietary (TrueMotion® VP6(TM), VP7(TM)) and standards based (MPEG-2, MPEG-4, H.263, H.264, VC-1) codecs dominate the video market, with more than 1 billion deployments on desktops worldwide and more than 200+ million in mobile; they are also proven in silicon with over 25 semiconductor manufacturers globally.

Established in 1992 and headquartered in Tarrytown, New York, On2 has offices and partners in Finland, Germany, UK, Japan, China, Taiwan and Korea. Customers include Nokia, Samsung, Sony, Freescale, AMS, Atmel, Adobe/Macromedia, AOL, Sony, Skype, Facebook, VideoEgg, Brightcove, Move Networks and XM Satellite Radio. For more information please visit www.on2.com.

Source: On2 Technologies, Inc.

CONTACT: Sam Vasisht, On2 Technologies, Inc., +1-518-724-3872, svasisht@on2.com

Web site: www.on2.com/

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