ASUS Licenses On2 VP7 Video Codec for Skype Videophones

Agreement builds on success of Eee Videophone, world's first Skype Certified
Standalone Videophone

CLIFTON PARK, N.Y. and TAIPAI, Taiwan, April 29 /PRNewswire-FirstCall/ -- On2
Technologies (NYSE Amex: ONT) announced today that ASUS, a leading provider of
digital home solutions and Internet devices, has licensed the On2(R) VP7(TM)
video format & encoder/decoder software SDK to develop Skype-enabled
videophones.

On2 VP7 is the video format used in Skype, which millions of people use every
day to communicate with others around the world. Skype calls with video are
gaining in popularity and account for over 25% of all Skype calls.

Under the agreement, ASUS has a multi-year license to develop and market Skype
phones featuring On2 VP7 video, including the Eee Videophone AiGuru SV1. The
Eee Videophone was an earlier collaboration of the two companies and was the
first videophone to be Skype Certified.

ASUS videophones enable people to make and receive free voice and video calls
to any Skype user without requiring a computer. Its simple-to-use, icon-based
interface and intuitive button layout take the complexity out of Internet
calling -- making it easy for anyone to make and receive Skype-to-Skype video
and voice calls. Users can even join voice conferences, making the Eee
Videophone an inexpensive, all-in-one voice and video conferencing solution
for small businesses. Furthermore, the Eee Videophone also allows users to
make and receive calls to and from fixed and mobile lines at very low rates.

"In the past six months we've shown the Eee Videophone with VP7 video at trade
shows & other meetings around the world," said Matt Frost, interim CEO and COO
at On2 Technologies. "People everywhere simply love this device. They are
captivated by its ease of use and video quality. ASUS did a remarkable job
integrating VP7 into the Eee Videophone and we look forward to seeing more
Skype-enabled devices from them in the future."

"Video quality and smooth streaming are central to the appeal of the Eee
Videophone. On2 VP7 enables us to deliver a product that creates a rich
experience for Skype users," said Ellis Wang, Deputy Director, EPC Business
Unit, Portable Media Box Product Planning & Management Department at ASUS. "We
expect a growing market for dedicated video-calling devices, and On2 provides
us with a robust codec platform on which to build devices that consumers want
for reliable video communication."

About On2 Technologies
On2 (NYSE Amex: ONT) creates advanced video compression technologies that
power the video in today's leading desktop and mobile applications and
devices. On2 customers include Adobe, Skype, Nokia, Infineon, Sun
Microsystems, Mediatek, Sony, Brightcove, and Move Networks. On2 Technologies
is headquartered in Clifton Park, NY USA. For more information visit
www.on2.com.

About ASUS
ASUS is a leading company in the new digital era. With a global staff of more
than eight thousand and a world-class R&D design team, the company's revenue
in 2007 was 6.9 billion U.S. dollars. ASUS ranks among the top 10 IT companies
in BusinessWeek's "InfoTech 100," and has been on the listing for 11
consecutive years.

Trademarks mentioned in this release are the property of their respective
owners.

SOURCE On2 Technologies

On2 Technologies, Inc., Chris Pfaff, +1-973-509-6565,
chris@chrispfafftechmedia.com; or ASUSTeK Computer Inc., Joy Lee,
+886-2-2898-7352, joy_lee@asus.com.tw