On2 Technologies Releases On2 Flix Cloud On-Demand Video Transcoding Service

Solution Lowers Costs of Video Transcoding While Decreasing Time to Market

CLIFTON PARK, N.Y. and HOPKINS, Minn., April 14 -- On2 Technologies, Inc. (NYSE Amex: ONT) today announced the release of its On2 Flix(R) Cloud on-demand video transcoding service, developed in partnership with Zencoder, LLC.

The new service combines On2 Flix Engine transcoding software with Zencoder's video encoding web application. Flix Cloud runs predominantly within the Amazon Elastic Compute Cloud (EC2).

Flix Cloud dramatically lowers video transcoding costs and entry barriers for organizations that need to quickly convert large quantities of video content. Video publishers can subscribe to Flix Cloud with no start-up costs or long-term contracts, and can begin transcoding videos the same day.

Flix Cloud harnesses the growing availability of cloud computing services for the CPU-intensive task of transcoding video. Traditionally, an organization would need to make substantial investments in datacenter resources and software licenses before beginning video transcoding operations at scale. With the Flix Cloud service, customers can budget projects on a 'pay as you go' model and use only the bandwidth and servers they require at a given moment.

Whether encoding dozens of videos to HD or thousands for the web, Flix Cloud charges customers a volume-based rate for the amount of data they transfer through the service, with no monthly subscription fees or minimum charges. In addition, Flix Cloud provides carefully designed 'encoding recipes' for the most common transcoding cases, ensuring best quality with minimal configuration.

"After a successful public Beta, we're very excited to release Flix Cloud," said Frank Galligan, General Manager, Applications, and VP of Engineering for On2. "The explosion in digital video content is increasing the complexity of encoding. Customers need to convert whole libraries of content to Flash, HD, and mobile formats at once, while keeping operational costs low. As a highly scalable, virtual service, Flix Cloud uniquely responds to these market needs."

On2 will present Flix Cloud at Streaming Media East, May 12 & 13 at the New York Hilton Hotel.

For more information, or to sign up for Flix Cloud, visit www.flixcloud.com.

About On2 Technologies and On2 Flix Engine

On2 (AMEX:ONT) creates advanced video compression technologies that power the video in today's leading desktop and mobile applications and devices. On2 customers include Adobe, Skype, Nokia, Infineon, Sun Microsystems, Mediatek, Sony, Brightcove, and Move Networks. On2 is also an industry leader in server-based video transcoding software. Their On2 VP6 video format provides web and HD-quality video for leading sites such as Hulu, Vimeo, Yahoo! Video, Dailymotion, CCTV.com, 56.com, Tudou.com and Eurosport.com. On2 Technologies is headquartered in Clifton Park, NY USA. For more information visit www.on2.com or www.on2.cn.

The On2 Flix Engine SDK is a leading enterprise video encoding platform for Linux and Windows used by leading web video, broadcast, social networking and other leading enterprises for creating video in multiple formats.

About Zencoder LLC

Zencoder is a full-stack video transcoding system that handles every aspect of video processing, from queuing to transcoding to storage. Zencoder is easy to set up, extremely scalable, highly reliable, and integrates through a simple web services API. The system can run on a variety of platforms, including Amazon EC2, high-performance server hardware, and commodity hardware.

The team behind Zencoder is involved in the open source software community and created the Ruby video transcoding library RVideo.

To learn more about Zencoder, visit www.zencoder.tv.

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