On2 Technologies Announces Plans to Produce Audio Codec; Audio for Video Coding System To Provide a Highly-Scalable Complement to Flagship Video Compression Technology

Business Wire, Sept 14, 2001

Business Editors

NEW YORK--(BUSINESS WIRE)--Sept. 14, 2001

On2 Technologies Inc., The Duck Corporation (AMEX: ONT), the industry leader in video compression technology, today announced the upcoming beta release of their new Audio for Video Coding system (AVC), On2's groundbreaking audio compression technology. AVC will be fully optimized to set a new standard of quality, clarity and range for audio delivery over the Internet and closed-area networks.

"The introduction of an audio codec that complements our video compression technology is a natural extension of our business plan. While clients evaluate our video technology and its ability to interact with other software, AVC will work seamlessly with our VP line of video codecs to provide a full-service solution," stated Douglas McIntyre, President and CEO of On2 Technologies. "On2 will now be able to offer the best video and audio available to potential licensees while eliminating integration concerns."

On2's VP4 video compression technology is widely recognized as delivering the highest-quality video at the lowest available data rates, and AVC will seek to continue that tradition of quality and scalability. It will compress audio at data rates competitive with the best of today's audio codecs, with reduced complexity and overhead for easy deployment on desktop computers and next-generation IP-based TV set-top boxes.

"AVC represents a perfect application of On2's core competencies in algorithm design and efficient cross-platform integration", said Dan Miller, founder and CTO of On2. "We are bringing the same level of commitment to excellence to this project that we have applied in our years of experience with video codec design and implementation."

The AVC beta release will be made available to prospective customers shortly.

About On2 Technologies, The Duck Corporation

On2 Technologies (AMEX: ONT) is a leading technology firm at the forefront of video compression. The Company revolutionized video encoding with the creation of its advanced full-motion, full-screen, video compression and streaming technology (TrueMotion(R) VP3/VP4). On2 licenses its high quality video codecs for use in set-top boxes, electronic gaming devices and wireless applications. In addition, On2 offers a suite of products and services, including high-level video encoding, hosting, streaming, customized technical support, and consulting services. Headquartered in New York City, the Company has an office in Albany, NY, and operations in 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.