On2 Technologies to Showcase Innovations in High Definition, Satellite, and Mobile Video at CES 2007

NEW YORK, Jan. 4 // -- On2 Technologies, Inc., (AMEX:ONT), a leader in video compression software and solutions, announced today that it will showcase new high definition and cross-platform video technologies at the upcoming International CES show in Las Vegas from January 8-11, 2007.

The new showcase is based on On2's industry leading TrueMotion(R) VP6 and VP7 codecs, and addresses emerging consumer market applications for video-on- demand, broadcast, user generated content, and commercial applications such as digital video signage. Building on the success of On2's VP6 for Adobe(R) Flash(R) 8 video, On2 is addressing the growing market of video across different bandwidth-constrained networks and mass-market devices, for fixed and mobile video.

High Definition Video: On2 will demonstrate high definition video playback based on its latest award winning TrueMotion VP7 compression technology at data rates as low as 2Mbps, allowing greater penetration of high definition video across low cost devices and existing networks for on-demand, broadcast and other streaming applications.

Mobile Video: On2 will demonstrate TrueMobile(R), its VP7 based mobile video system for reaching the largest number of handsets across the most networks, including 2.5G, 3G and 4G networks. TrueMobile offers the most efficient and affordable mobile video solution for carriers and media companies at data rates as low as 20kbps, and with an over-the-air upgrade to convert most popular data-enabled phones to TrueMobile video phones.

Internet Video for TV and Mobile: On2's transcoding and playback solutions will be used to demonstrate how popular web video content can be played back on any device - TV, PC, and mobile phones - for true cross- platform applications. Social Networking and User-Generated Content (UGC) can be accessed on TVs and mobile phones, in addition to PCs.

The showcase will also feature On2 VP6 based Flash 8 playback on C2 Micro's Jazz2 processor and Texas Instruments' DaVinci(TM) technology. These embedded platforms allow popular Flash 8 video web content based on On2 VP6 to be purposed for TV viewing with affordable CE devices and set-top boxes.

Satellite Video: On2 will join XM Satellite in demonstrating VP7 based satellite delivered video to XM Satellite devices. The demonstration can be seen at the On2 booth and XM Satellite's booth.

"Our technology showcase at CES represents significant breakthroughs in video compression and its application in cutting-edge market trends such as user generated content and mobile video," said Bill Joll, president and CEO of On2 Technologies. "We are showcasing these because of major customer initiatives behind these solutions, and we expect important consumer electronics products to ship in 2007, as a result."

On2's booth is located in the Anytime/Anywhere Technology Zone at the Sands Convention Center, booth # 69628. Executives from On2 will be available to meet at the booth. To schedule meetings in advanced, please contact sales@on2.com.

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 an R&D offices in Clifton Park, NY, and Cambridge, UK. To contact On2, write to sales@on2.com or visit www.on2.com/.

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

Source: On2 Technologies, Inc.

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

Web site: www.on2.com/

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