High Definition Video to Internet Computers, Cell Phones and Handhelds Aim of New...

Mon Jan 7, 2008 6:15am EST

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High Definition Video to Internet Computers, Cell Phones and Handhelds Aim of New Agreement Between Broadcast International and On2 Technologies

LAS VEGAS--(Business Wire)--Broadcast International (OTCBB:BCST) ("BI") and On2 Technologies
(AMEX:ONT), leaders in video compression technology and solutions,
today announced an agreement to make real-time, high quality video,
including high-definition (HD) video, accessible anywhere to capable
network-connected devices.

   Under the agreement, Broadcast International will integrate On2's
market-leading TrueMotion(R) codecs, which have more than 1 billion
deployments worldwide, with its breakthrough CodecSys multi-codec
video compression software. This integration will allow content
available in standard formats to be encoded in real-time for delivery
to a broad range of devices in resolutions significantly higher than
previously possible.

   "By incorporating the On2 Technologies codec into Broadcast
International's CodecSys encoder framework, this opens up the world of
Adobe(R) Flash(R) video and points to the future possibility of
massively powerful and yet cheap encoders, running on the IBM Cell
chip, which can ingest video once, and real time encode at impossibly
low bandwidth, video for set tops, PCs and handsets, all in a single
pass," said Peter White, Principal Analyst for digital media at
Rethink Research Associates.

   As a result, any high quality content can be repurposed for IP
delivery to a wider consumer base in the burgeoning IP video market.
Consumers will be able to receive very efficient full screen, full
motion video, including HD video delivery to their computers, laptops,
cell phones, and other video devices in On2's TrueMotion(R) VP6(TM)
and VP7(TM) formats. On2's TrueMotion formats are used by a vast
number of web video, social networking and user generated content
sites, and leading web video conferencing and instant messaging
services.

   "The days of small-screen, jerky, fuzzy video over the Internet
are numbered," said Rod Tiede, CEO of Broadcast International. "Our
agreement with On2 will make watching video on your computer the same
quality experience as on your home theater system. And if you're not
at a computer, you can watch it on your cell phone. It's a real
breakthrough for consumers, everywhere."

   The CodecSys software will be powered by IBM's Cell Broadband
Engine(TM) (Cell/B.E.) processor and the IBM BladeCenter(R) QS21
server, which incorporates the same powerful, multi-core IBM processor
used in the Sony Playstation 3(R). The video encoder will enable HD
quality video to be encoded and delivered within bandwidths previously
supporting considerably lower-quality video, resulting in high quality
video being made available to a broader market. Simultaneously, On2
has announced video initiatives with a new VP6-S(TM) profile of its
popular VP6 codec for HD video at extremely low bandwidths and low
processor power requirements, and updates to VP7 similarly capable of
HD video at very low bandwidths.

   "On2 is in the 'cat bird seat' to help the world move TV content
onto the web, move the web to TV, and move everything to mobile
devices, and it's all got to support high definition," said Gerry
Kaufhold, principal analyst with In-Stat. "Broadcast International's
high-performance CodecSys platform provides digital delivery services
with a future-proof solution for all of their encoding needs, and will
help increase the availability of HDTV on demand."

   CodeSys will enable content providers and distributors to use a
single encoder to deliver video to any device, no matter how it's
transmitted - over broadcast, cable, Internet, or mobile networks.
Traditional encoding solutions require single-purpose encoders for
each type of transmission, increasing the cost and operational
complexity required to maintain ubiquitous support for multiple codecs
and delivery networks. By supporting On2's video codecs, CodecSys will
allow any video to be sent to any device that supports On2's codecs,
which includes Adobe(R) Flash(R) Player available on more than 90
percent of PCs worldwide, and will be available on Adobe(R) Flash(R)
Lite(TM) 3 (FL3) devices in 2008.

   "The combination of On2 TrueMotion and CodecSys solve the problem
of quality and accessibility in one elegant solution," said Bill Joll,
president and CEO of On2 Technologies. "With On2's more than 1 billion
deployments and CodecSys' functionality that allows high quality
content to be easily repurposed for any delivery mode, content and
service providers will have an easy and affordable way to reach the
widest possible audience for IP delivered HD video, whether that be
over wired or wireless networks."

   BI and On2 executives will be at CES 2008, January 7-10 in Las
Vegas, for briefings regarding this announcement at the IBM booth
(South Hall #36634) and On2 booth (LVCC booth # 11808), and at the
Pepcom event on January 6, 2008.

   Video "Placeshifting" Has Arrived

   The powerful combination of BI's CodecSys software running on
IBM's Cell/BE engine -- coupled with On2 Technologies' ubiquitous
presence on virtually every computer and device - will enable a trend
called "placeshifting." Placeshifting is the ability to watch video
content anywhere from any video capable device including computers,
cell phones and PDAs.

   "Applications such as placeshifting, and mobile social networking
are shaping the future of video, said Rod Tiede, president and CEO of
Broadcast International. "The problem has been available bandwidth, on
the one hand, and the inability to deliver content across multiple
delivery networks to an end-user. Now, both of those problems are
solved. And end-users who want to watch their favorite video content
from wherever they happen to be will be the big beneficiaries."

   Patented CodecSys technology, now with On2 codecs

   Broadcast International has patented the unique CodecSys approach
of using multiple expert codecs rather than single, general-purpose
codecs. By automatically switching between specialized codecs,
choosing the best one for a particular frame or video sequence,
CodecSys is able to reduce video bandwidth requirements more than 80%
for HD video over all types of delivery platforms including broadcast,
cable, IPTV, wireless and the Internet.

   The On2 Technologies' codecs will be added to the CodecSys codec
line-up, enabling a wider range of video to be delivered to consumers
on the platforms that users have already chosen, including 90% of
desktop computers worldwide. The IBM Cell/B.E. processor accelerates
the CodecSys codec-switching process, providing a platform for nearly
unlimited processing power and video compression capabilities.

   BI's software is based on an open software architecture that can
accommodate new standards, such as H.264, as well as new specialized
codecs as they come onto the market. The IBM Cell/B.E. processor
hardware platform is also highly programmable and scalable, enabling
customers to add additional processing power by simply adding extra
processors or "blades".

   About Broadcast International

   Broadcast International is a leading provider of video-powered
broadcast solutions, including IP, and digital satellite, Internet
streaming and other types of wired/wireless network distribution. BI's
patented CodecSys software is a breakthrough, artificial
intelligence-based video compression technology that cuts video
bandwidth requirements more than 80% over satellite, cable, IP and
wireless networks. By slashing bandwidth needs, CodecSys enables a new
generation of applications such as streaming video to cell phones, and
offers unprecedented price/ performance benefits for existing
applications such as HD video.

   Broadcast International is a public company (OTCBB:BCST)
headquartered in Salt Lake City UT. For more information go to
www.brin.com and www.codecsys.com.

   About On2 Technologies

   On2 Technologies (AMEX:ONT) ensures a compelling video experience
for any video application anywhere. From low bit rate to high
definition, On2 provides optimized video compression technology
enabling innovative solutions for application developers, content and
service providers, chip vendors, device manufacturers, digital signage
companies and beyond.

   Through continual innovation, On2 satisfies the toughest quality,
bandwidth, and power requirements for video. The company's proprietary
(TrueMotion(R) VP6(TM), VP7(TM)) and standards based (MPEG-2, MPEG-4,
H.263, H.264, VC-1) codecs dominate the video market, with more than 1
billion deployments on desktops worldwide and more than 200+ million
in mobile; they are also proven in silicon with over 25 semiconductor
manufacturers globally.

   Established in 1992 and headquartered in Tarrytown, New York, On2
has offices and partners in Finland, Germany, UK, Japan, China, Taiwan
and Korea. Customers include Nokia, Samsung, Sony, Freescale, AMS,
Atmel, Adobe/Macromedia, AOL, Sony, Skype, Facebook, VideoEgg,
Brightcove, Move Networks and XM Satellite Radio. For more information
please visit www.on2.com.

   Forward-Looking Statements

   All statements in this news release that are not based on
historical fact are "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995 and the
provisions of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended
(which Sections were adopted as part of the Private Securities
Litigation Reform Act of 1995). While management has based any
forward-looking statements contained herein on its current
expectations, the information on which such expectations were based
may change. These forward-looking statements rely on a number of
assumptions concerning future events and are subject to a number of
risks, uncertainties, and other factors, many of which are outside of
our control, that could cause actual results to materially differ from
such statements. Such risks, uncertainties, and other factors include,
but are not necessarily limited to, those set forth under the caption
"Additional Factors That May Affect Our Business" in the Company's
most recent Form 10-K and 10-Q filings, and amendments thereto. In
addition, we operate in a highly competitive and rapidly changing
environment, and new risks may arise. Accordingly, investors should
not place any reliance on forward-looking statements as a prediction
of actual results. We disclaim any intention to, and undertake no
obligation to, update or revise any forward-looking statement.

   All trademarks mentioned in this document are the property of
their respective owners. BladeCenter, IBM, QS21 and Power Architecture
are trademarks of International Business Machines Corporation in the
United States, other countries or both. PLAYSTATION is a registered
trademark and Cell Broadband Engine is a trademark of Sony Computer
Entertainment, Inc., in the United States, other countries, or both
and is used under license there from.

Broadcast International
Rob Chipman, 801-567-3287
rob.chipman@brin.com
or
On2 Technologies, Inc.
Sam Vasisht, 518-724-3872
media@on2.com
or
Snapp Conner PR
Cheryl Snapp Conner or Jeremy Kartchner, 801-994-9625
cheryl@snappconner.com; Jeremy@snappconner.com
Draper, UT 84020

Copyright Business Wire 2008
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