On2 Technologies Receives Patent for Video Optimization Technology Techniques Improve Performance, Visual Video Quality

    NEW YORK, May 30 /PRNewswire-FirstCall/ -- On2 Technologies, Inc.
 (Amex:   ONT) announced today that it has been granted patent number
 7,027,654 for advances first implemented in its TrueMotion VP6 and VP7
 video compression technology. The patent was issued for an improved video
 compression system employing video decoding strategies that improve
 performance in constrained environments such as live video applications or
 in environments where CPU processing power is constrained.
     The patent covers two separate decoding techniques. Both techniques are
 applicable to a variety of video codecs, including On2's VPx series.
     The first -- which applies in particular to devices with vector
 processing capabilities such as Intel's MMX and XScale technologies and
 Motorola's AltiVec -- improves efficiency and hence decoding performance by
 reordering transform coefficients as they are decoded.
     The second strategy uses a family of separate but dependent
 post-processing filters to improve visual quality at low cost to CPU
 performance. Codec developers can employ this technique to achieve better
 visual quality on a device without greatly increasing its CPU requirements.
     "The coefficient transform patent grant is more evidence of On2's
 commitment to innovation," said Eric Ameres, On2's chief technical officer
 and executive vice president of engineering. "On2 employs the best minds in
 the video compression industry, and our entire management team is proud of
 their continued dedication to our customers and to maintaining On2 Video as
 the gold standard in our field."
     About On2 Technologies, Inc., The Duck Corporation
     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. They operate with On2's Flix and On2 TrueCast software, as well as
 third-party products. On2's software is used by such leading global
 companies as Adobe/Macromedia, AOL, Skype, XM Satellite Radio, Sony,
 VitalStream, and Tencent. The On2 Video decoder has an installation base of
 millions through its inclusion in Adobe Flash Player, Skype 2, AOL Media
 Player, Viewpoint, and others. Located in New York City, the company has an
 office in Clifton Park, NY, and operations in Cambridge, UK. To contact
 On2, write to sales@on2.com or visit www.on2.com.
     Trademarks mentioned in this release are property of their respective

SOURCE On2 Technologies, Inc.

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