On2 Technologies Announces New Flix(R) Engine with TrueCore(TM) Technology for Multi-Core Processors

Faster than real time video encoding possible for Adobe(R) Flash(R) Player 8 and 9

TARRYTOWN, N.Y., July 16 -- On2 Technologies, Inc., (AMEX:ONT) , a leader in video compression software and solutions, announced today that it has released a new version of its flagship Flix Engine video encoding software designed for servers with multi-core processors. Through On2's new TrueCore technology, Flix Engine can use multiple processor cores to encode video in parallel, resulting in substantially faster video transcoding speed with a single Flix Engine. With TrueCore technology, a 720P high- definition video file can be encoded at 1.4 times faster than real-time on a processor with eight cores.

The new Flix Engine offers two modes of operation for different video encoding applications. The default mode is targeted at user-generated content (UGC) sites, and other high-volume applications for smaller video files. In this mode, Flix Engine simultaneously encodes multiple videos by automatically spawning a new encoder process on each available core or processor. An eight- core processor can therefore encode eight video files simultaneously.

For high-resolution content, Flix Engine uses the TrueCore technology to encode different sections of a video file simultaneously across multiple processor cores. As a result, large files, such as high-definition video (HD), are encoded significantly faster, and can be encoded faster than real time with suitable number of cores utilized.

"Faster encoding has been a high customer priority, especially as VP6- based Flash based video programming is used at higher, even broadcast quality resolutions," said Bill Joll, president and CEO of On2. "With the increasing availability of multi-core processors in affordable off-the-shelf hardware, our TrueCore technology gives users the ability to fully leverage the benefits of such processors. Our flagship product, the Flix Engine, is the perfect platform to introduce truly affordable and fast encoding with this breakthrough technology."

In either mode, Flix Engine with TrueCore provides marked improvements with each additional processor core. For instance, a four-core instance can encode a video file approximately three times faster than a single-core implementation of Flix Engine, and an eight-core instance can encode a video file approximately five times faster.

"We are pleased to see On2 further innovate their line of video encoding software," said Chris Hock, group product manager, Flash Media Server, for Dynamic Media at Adobe. "Flash technologies have set the benchmark for web video, and faster encoding with On2's TrueCore technology further pushes the boundaries for how Flash based video can be applied to both high volume and high resolution video applications."

Flix Engine with TrueCore is offered at the same licensing terms as the current Flix Engine for up to four-core utilization. Thereafter, each additional four cores accrue additional Flix Engine licensing fees. Existing Flix Engine licensees who have current support contracts can upgrade to Flix Engine with four-core TrueCore technology at no additional cost by contacting On2 at sales at on2.com, or through their sales representatives.

Flix Engine with TrueCore is available immediately in both Linux and Windows versions.

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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