On2 Integrates Exordia Technology into Server Software; Doubles Server Streaming Efficiency

Business Wire, April 10, 2001

Business & Technology Editors

NEW YORK--(BUSINESS WIRE)--April 10, 2001

On2.com Inc. (ASE: ONT), a leading broadband technology and services company specializing in providing the highest-quality streaming video at the lowest possible data rates, announced today that it will integrate Exordia's leading-edge PIVOT technology into its TrueCast Video Solution and VP3 Plug-In for RealServer products.

The new versions of these products will be available in late Q2 2001.

On2's TrueCast Video Solution delivers the smoothest video streaming available on the Internet. Designed with advanced bandwidth monitoring, the TrueCast Video Solution allows for multiple bit rate files to scale dynamically and smoothly as bandwidth fluctuates, providing the viewer with a consistent and reliable experience without choppiness or interruption. The On2 VP3 Plug-In for RealServer brings On2's TrueCast Video Solution features of Dynamic Stream Switching and advanced bandwidth management functions to the Real architecture when a VP3 file is played.

Exordia's PIVOT technology circumvents Internet congestion by distributing the bandwidth and server demands of a streaming video session across multiple, independent routers and servers, optimizing during the session to meet performance and cost objectives.

"Exordia's PIVOT technology solves one of the most vexing problems in Internet streaming, it allows higher bandwidth video streams to reach end users across the Internet," said On2 President and Chief Executive Officer Douglas McIntyre.

"Exordia chose to work with On2 because On2's video streams look the best. Our PIVOT transport technology combined with On2's streaming will enable all new levels of video quality across the Internet," said John Bloomer, Exordia Chairman and Chief Executive Officer.

About On2.com

On2.com Inc. (ASE: ONT) is a leading technology firm at the forefront of video compression. Originally founded in 1992 as the Duck Corporation, the Company went public in June of 1999 and was renamed On2.com. The Company revolutionized video encoding with the creation of its advanced full-motion, full-screen, TV-quality video compression and streaming technology (TrueMotion(R) VP3/VP4). Today, On2 offers a suite of products and services, including high-level video encoding, hosting, streaming, interface design, customized technical support, and consulting services. In addition, On2 licenses its high quality video codecs for use in set-top boxes, electronic gaming devices and wireless applications. Headquartered in New York City, the Company has an office in Albany, NY, and operations in San Francisco, CA, and London, UK, and Seoul, Korea. On2 may be reached at 145 Hudson Street, New York, NY 10013, telephone 917-237-0500 or info@on2.com. Investor inquiries should be sent to invest@on2.com. More information is available at www.on2.com.

About Exordia

PIVOT is a patent-pending technology that transparently segments requests for digital content, including audio- and video streams, into non-overlapping, interleaved requests. This allows multiple independent routers and servers to work together to optimize the end user's experience. PIVOT dynamically assigns slices of the demand to the "best" servers and network routes, optimizing according to preset criteria, e.g., end user performance or cost. It does this by employing a client-side proxy with statistical optimization in an intra-session framework. The net result is a faster, more robust, fault-tolerant delivery system that is more cost-effective than contemporary architectures. PIVOT improves infrastructure utilization thru dynamic, global load distribution - squeezing every last megabit from each router and server, and is capable of spanning bandwidth and content providers. Exordia is headquartered in New York, New York and can be reached at 646-366-1990.

This release, together with any oral comments related hereto, contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are subject to the safe harbor provisions of those sections and the Private Securities Litigation Reform Act of 1995. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risk uncertainties including those described in our filings with the SEC, and that the actual results or developments may differ materially from those in the forward-looking statements as a result of various factors. We have based these forward-looking statements on information currently available and disclaim any intention or obligation to update or revise any forward-looking statement.