On2 Licenses Codec

TARRYTOWN, NY and AUSTIN, TX -- On2 Technologies, Inc. (AMEX:ONT), a leader in video compression software and solutions, and Media Excel Inc., a leading provider of Advanced Digital Video Content Adaptation for MobileTV, Web TV and IPTV, announced today they have signed a licensing agreement that will open new market opportunities for On2 and further establish Media Excel’s leadership in the transcoding market.

“The TrueMotion VP6 codec, which is the video compression technology behind Flash video, is widely accepted as the de facto standard for web-based video,” said Bill Joll, president and CEO of On2 Technologies. “The integration of VP6 into Media Excel’s DSP solutions expands our reach beyond the computer screen and to the digital home and mobile TV device market.”

Media Excel will implement On2’s TrueMotion VP6 digital video encoding solution as an added feature in its DSP-based transcoder acceleration module, which is the basis for the HERA appliance family. This added functionality will provide encoding video streams in VP6 for live, real-time broadcasting of Adobe® Flash® video and off-line transcoding to Flash standard. This feature will complement Media Excel’s HERA product line current ability to encode and broadcast in MPEG2, MPEG4 Part 2, H.263 and MPEG4-H.264 (AVC) formats, simultaneously and in multi bit-rate form.

“The combination of On2 and Media Excel’s technologies will provide a tremendous price/performance improvement in file transcoding,” said Thanasis Iatrou, President and CEO of Media Excel. “The HERA product line was designed be the fastest, most complete real-time transcoding solution to deliver high quality compressed video over IP networks, irrespective of the content source or destination device.”

On2 Technologies