On2 Technologies Expects Revenues to Grow in Excess of 150% for 2002

On2 Technologies Inc., The Duck Corporation, a provider of videocompression technology, has announced it expects to increase revenuesfor 2002 in excess of 150% over 2001, while decreasing operating costsan additional 25% over 2001.

"We experienced a marked increase in the demand for our products andservices within the last fiscal quarter, thus allowing us tosuccessfully execute our business model. Our two-tiered approach ofproviding consulting and engineering services and collecting licensingfees and royalties will have a significant impact on both our revenuesand earnings in 2002," said Douglas A. McIntyre, On2 TechnologiesPresident and CEO.

"Due to aggressive cost cutting initiatives throughout 2001 andgreater emphasis on licensing fees and royalties, we believe we willreduce our 2002 operating costs by at least 25% over 2001," stated MarkMeagher, Chief Financial Officer.

The Company will discuss these revenue projections on its Feb. 21conference call.

About On2 Technologies, The Duck Corporation

On2 Technologies (AMEX: ONT - news) is a leading technology firm atthe forefront of video compression. The Company revolutionized videoencoding with the creation of its advanced full-motion, full-screen,video compression and streaming technology (TrueMotion® VP3/VP4).On2 licenses its high quality video codecs for use in set-top boxes,electronic gaming devices and wireless applications. In addition, On2offers a suite of products and services, including high-level videoencoding, hosting, streaming, customized technical support, andconsulting services. Headquartered in New York City, the Company has anoffice in Albany, NY, and operations in London, UK, and Seoul, Korea.On2 may be reached at 145 Hudson Street, New York, NY 10013, telephone917-237-0500 or info@on2.com. Investor inquiries should be sent toinvest@on2.com.