16 times faster encoding speeds possible for popular VP6 for Flash video content with Kulabyte multi-core processing technology over standard encoding hardware platforms; will demonstrate solution at NAB 2007 in Las Vegas, April 16-19, at Booth #SL13713

Tarrytown, NY and San Marcos, TX (April 3, 2007)—On2 Technologies, Inc., (AMEX:ONT), the leading provider of video compression software and solutions, and Kulabyte, a leading provider of advanced audio and video processing technologies, announced today a licensing agreement for On2 VP6 compression schemes for Live and On Demand encoding, used by Adobe® Flash® Player 8 and 9, to Kulabyte for its Professional Encoding Suite.

The Kulabyte Professional Encoding Suite will be unveiled at the National Association of Broadcasters (NAB) convention in Las Vegas, April 16 at the Kulabyte booth #SL13713, in the lower level of the South Hall of the Las Vegas Convention Center.

Under this agreement, On2 VP6 compression schemes will be supported in Kulabyte Professional Encoding Suite, giving customers the ability to achieve significantly faster encoding speeds for the popular Flash video format, which is rapidly becoming the dominant format for video on the web and the format of choice among user generated content sites and social networking sites.

The Kulabyte Professional Encoding Suite is a patent-pending multi-core encoding system that achieves significantly faster encoding speeds and higher quality video at much lower bit rates than standard encoding solutions, giving programmers the ability to produce content in desired formats with greater efficiency and economies of scale. In a typical video production work flow, compressing video for the desired distribution platform is the bottleneck to presenting users with content in a timely way. The advantages of faster encoding are particularly desirable for time-sensitive content such as news, sports and live broadcasting.

Faster encoding times have been a constant request from customers, particularly as the amount of content being created for Flash Player 8 is exploding with the majority of Internet video and social networking sites adopting VP6 based Flash video as the chosen format,” said Bill Joll, president and CEO of On2. While VP6 in itself is one of the most efficient formats, Kulabyte has changed the paradigm for what can be achieved with multi-core hardware platforms to significantly overcome challenges that traditional encoding hardware could not.

Kulabyte’s Professional Encoding Suite provides multi-core processing enhancements to the video encoding process. Kulabyte-enabled Flash video is encoded in standard definition (SD) and high definition (HD) formats at at up to16 times faster encoding speeds than standard industry encoders. Kulabyte Professional’s speed increases proportionately as processor cores are added, ensuring virtually limitless attainable encoding speeds.

“As both content producers and IPTV networks demand greater bandwidth efficiencies, and as the lines between Internet and professional-grade video blur, our customers see a need for enhancing industry-standard video software and hardware solutions with KulaByte technology and On2 codecs, said Chris Gottschalk, President and CTO of Kulabyte. The On2 VP6 codec is nearly universal in its availability, and now it will perform faster to meet the increasing demands of media companies, programmers and social networking sites.

Kulabyte offers 2-pass variable bit rate (VBR) encoding in both live and/or on-demand broadcasting, which enables media companies to realize superior picture quality, faster encoding speeds and optimized bandwidth utilization. The Kulabyte Professional encoding solution with On2 VP6 will be available in the 2nd quarter of 2007.

About On2 Technologies, Inc. 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. On2’s software is used by such leading global companies as Adobe/Macromedia, AOL, Skype, XM Satellite Radio, Sony, CTTNet, VitalStream, and Tencent. Located in Tarrytown, NY, the company has R&D offices in Clifton Park, NY, and Cambridge, UK. To contact On2, write to or visit http://www.on2.com.

Editorial Contacts
On2 Technologies, Inc.
Sam Vasisht, On2
+1-518 724 3872

Kula Media Group
John Pepe, Kula Media Group
+1-512-535-1183

Chris Pfaff
Chris Pfaff Tech/Media LLC
+1-201-218-0262