On2 Technologies Adds New VP6-S(TM) Video Profile to its Flix(R) Product Line to Support High-Definition Video Playback with 'Moviestar' Update to Adobe(R) Flash(R) Player 9

New VP6-S profile in Adobe Flash Player 9 delivers full screen high-resolution playback for streaming video on mass market PCs.

TARRYTOWN, N.Y., Sept. 27 -- On2 Technologies Inc., (AMEX:ONT) , a leader in video compression software and solutions, announced today upgrades to its Flix product line to support the new VP6-S video profile added by Adobe to the Adobe(R) Flash(R) Player 9 update, code named Moviestar.

On2's Flix product line is the leading line of VP6 based video encoding and publishing software solutions for Adobe Flash Player. Flix software is available for desktop, server and browser-based applications for Windows, Linux and Mac, and is used by many of the leading web video portals and user- generated content and social networking sites.

"The improved video quality that On2's VP6 technology brought to Adobe Flash Player changed the landscape of web video. The new VP6-S profile pushes the envelope further by making the playback of high definition, streaming video possible on the majority of PCs worldwide", said Bill Joll, president and CEO of On2 Technologies. "Video encoded using VP6 for the Adobe Flash Player, can now deliver the kind of experience from the web that users are used to when watching their favorite programs on television."

The new VP6-S video profile offers greater simplicity in the encoding and playback of high-resolution, full-screen video, thereby allowing high definition video to be streamed and played back within processor power limitations posed by the majority of personal computers.

"With the addition to VP6-S in Moviestar, we are providing our customers more options to provide high-resolution, full-screen video to millions of viewers worldwide," said Jen Taylor, group product manager for Flash at Adobe. "Our customers have relied on On2's VP6 technology for quality and efficiency, and we look forward to working with On2 on the VP6-S profile."

VP6-E video remains the recommended format for achieving optimal performance for typical web video delivered at or below 500Kbps, and VP6-S is recommended to achieving higher resolutions with low power utilization on mass-market machines with limited processor speeds. Together, VP6-S and VP6-E video profiles in Adobe Flash Player 9 offer the benefits of Flash Player compatible video across the spectrum of content and use cases desired by content providers and consumers.

On2 will demonstrate the high definition performance of the new VP6-S video profile at the MAX conference being held in Chicago, September 30- October 3, Barcelona, October 15-18, and Tokyo, November 1-2, 2007.

On2 will ship its flagship Flix Engine upgrade for VP6-S mid-October, concurrently with the Adobe Flash Player 9 update. The remaining Flix product line with VP6-S upgrades will ship during the fourth quarter of 2007.

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, AOL, Skype, XM Satellite Radio, Sony, CTTNet, VitalStream, Brightcove, and Tencent. Located in Tarrytown, N.Y., the company has R&D offices in Clifton Park, N.Y., and Cambridge, UK. To contact On2, write to sales at on2.com or visit http://www.on2.com/.

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