On2 Technologies Announces H.264 Support for Adobe Flash Player Compatible Video

Industry leading On2 Flix(R) product line expands H.264 support to target Adobe(R) Flash(R) Player

TARRYTOWN, N.Y., Aug. 21 -- On2 Technologies, Inc. (AMEX:ONT) , a leader in video compression software and solutions, announced today that it is expanding the capabilities of its Flix product line to support the H.264 implementation in the latest update to Adobe(R) Flash(R) Player 9, currently in beta on Adobe Labs (http://labs.adobe.com/). On2's Flix product line will now encode H.264 video files supported by the Adobe Flash Player, which already supports Sorenson Spark and On2 VP6(TM) based FLV files extending, the H.264 support in the Flix product line that On2 recently announced.

"We are pleased to continue support for Adobe Flash Player in our Flix product line, which is near and dear to us given the success of On2 VP6 for Flash Player compatible video," said Bill Joll, president and CEO of On2 Technologies. "By supporting both VP6 and H.264, we are giving customers choice in licensing terms and support for their varied infrastructure and application requirements with the leading advanced video formats. With Flix, customers get this choice without forklift changes in infrastructure, and existing Flix customers have a seamless migration path through easy upgrades. The success of our Flix product line is due in part to the broadest industry support of input formats. With this addition, Flix will support all the major output formats important to the industry going forward as well."

On2 will start shipping its flagship Flix Engine with H.264 support for Adobe Flash Player in September 2007, and the entire Flix product line will support H.264 for Adobe Flash Player in Q4, 2007, along with On2's previously announced H.264 encoding support.

"Since Flash Player 8, the On2 VP6 codec has helped our customers deliver high quality, on-demand and live video through the Flash Player," said Kevin Towes, technical product manager for Flash Media Server at Adobe. "On2's continuing support for H.264 will help our customers leverage a standardized video codec to deliver rich video experiences with Flash Player compatible video, Flex and Adobe AIR."

Flix customers will now have a choice of licensing Flix for VP6 or Flix for both VP6 and H.264. Each format carries different licensing terms, given the licensing terms set by MPEG-LA, the IP licensing arm of the MPEG consortium for H.264. For VP6, the IP licenses are included in the software license.

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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