On2 Technologies To Exhibit Latest Video Technologies at Streaming Media East 2009

On2 Technologies To Exhibit Latest Video Technologies at Streaming Media East
2009

Company Will Demonstrate On2 VP8 Video Codec and On2 Flix Cloud Video
Transcoding Service

CLIFTON PARK, N.Y., May 11 /PRNewswire-FirstCall/ -- On2 Technologies, Inc.
(NYSE Amex: ONT) today announced that it will show its latest video
compression and transcoding products at the Streaming Media East 2009
conference and exhibition, to be held on May 12 and 13 at the New York Hilton
in New York City.

On2 will demonstrate its On2 VP8(TM) video codec as well as its new On2
Flix(TM) Cloud on-demand video transcoding service--developed in partnership
with Zencoder LLC--in Booth #113.

Mike Savello, On2's vice president of worldwide sales, will lead a session
presenting On2's solutions for reducing video bandwidth costs using On2 VP8.
VP8 requires as much as 50% less bandwidth to deliver video that is the same
or higher quality than H.264, VC-1, and Real Video.

"The rapid growth of online and mobile video is creating very strong demand
for solutions that lower the costs of delivering high-quality content, and On2
is uniquely positioned to meet that demand," said Matt Frost, interim CEO of
On2 Technologies. "Video providers face a huge challenge as their revenues are
consumed by high bandwidth costs, so we have engineered On2 VP8 to offer
superior video quality and decoding performance while using less bandwidth
than any other codec on the market. For content producers, Flix Cloud provides
highly scalable, affordable video transcoding with a virtualized
implementation of our popular Flix Engine software."

On2 VP8

On2 VP8, the eighth generation of On2 video, is the perfect solution for web
TV, IPTV and video conferencing companies to differentiate their products by
delivering higher quality video using less data and requiring fewer system
resources for playback.

On2 VP8 dramatically surpasses the compression performance of all other
commercially available formats. For example, leading H.264 implementations
require as much as twice the data to deliver the same quality video as On2
VP8, as measured in objective peak signal to noise ratio (PSNR) testing. In
addition, On2 VP8 video streams require fewer processing cycles to decode than
competing codecs, so users do not need to have high-performance PCs or mobile
device to enjoy On2 VP8 high video quality.

On2 Flix Cloud

The Flix Cloud service enables producers and content distributors to
dramatically reduce video transcoding costs in a web services model. The
service also lowers entry barriers for organizations that need to quickly
convert large quantities of video content. Video publishers can subscribe to
Flix Cloud with no start-up costs or long-term contracts, and can begin
transcoding videos the same day. Flix Cloud is built on the same Flix Engine
technology that powers many of today's most popular video web sites.

Whether encoding dozens of videos to HD or thousands for the web, Flix Cloud
charges customers a volume-based "pay as you go" rate for the amount of data
they transfer through the service, with no monthly subscription fees or
minimum charges. In addition, Flix Cloud provides a robust web services API
and carefully designed transcoding "Recipes" for the most common formats and
use cases, ensuring best quality with minimal configuration.

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.

SOURCE On2 Technologies, Inc.

Chris Pfaff, On2 Technologies, Inc., +1-973-509-6565,
chris@chrispfafftechmedia.com