On2 Technologies to Open Source VP3.2 Video Compression Technology

New York, NY, August 7, 2001 -- On2 Technologies, The DuckCorporation (AMEX: ONT), a leading technology and services companyrecognized as developers of the highest performance video compressiontechnology commercially available, announced today that they will bereleasing an Open Source version of their groundbreaking VP3.2 videocompression algorithm. The licenses and source code will be availableat several websites within this quarter.

"Our contribution of VP3.2 into the Open Source community marks thefirst time a competitive video codec has been made available in thisfashion. We feel that it is essential to the success of the digitalrevolution that these enabling technologies not remain locked intoclosed, proprietary systems," said Dan Miller, Founder and ChiefTechnology Officer of On2. "By Open-Sourcing this recent-generationtechnology now, we hope to break the logjam of incompatible formats andheavily encumbered so-called standards, promoting a true common formatthat is open, documented, and freely available to all," heconcluded.

"In business, no one wants to be hostage to a single-source vendor,"added Douglas McIntyre, President and Chief Executive Officer, who madethe announcement today at the Integrated Broadband Networks Summit. "Itis imperative that key components of new technology such as thecompression format be freely available to multiple developers to ensurea fair, competitive environment, with interoperability based on acommon, open source. The development of streaming has been arrested bythe notions that proprietary codecs are too expensive and MPEG has beentoo slow to progress."

On2’s TrueMotion VP3 and VP4 generation of codec technologyhas been acknowledged by most leading industry experts as thebest-of-breed compression technology for broadband streaming over theInternet and Internet-technology based systems.

About On2 Technologies

The Duck Corporation On2 Technologies (AMEX: ONT) is a leadingtechnology firm at the forefront of video compression. On2 licenses itshigh quality video codecs for use in set-top boxes, electronic gamingdevices and wireless applications. In addition, On2 offers a suite ofproducts and services, including high-level video encoding, hosting,streaming, customized technical support, and consulting services. On2may be reached at 145 Hudson Street, New York, NY 10013, telephone917-237-0500 or info@on2.com.