On2 Announces Flix Live 8 for Flash Video

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NEW YORK, NY (August 17, 2006) - On2 Technologies, Inc. (AMEX:ONT) today announced the release of its On2 Flix Live 8 video encoding application.

On2 Flix Live makes broadcast-quality video webcasting on the Flash Platform available to enterprises and content delivery networks. It is the first application on the market that is capable of encoding live feeds in On2 VP6, the advanced video technology in Macromedia Flash Player 8 from Adobe.

The application is powered by the On2 Live SDK for Flash, which delivers live Flash video at the highest image quality while also maintaining low streaming latency. Working closely with Adobe, On2 designed the On2 Live SDK for Flash to deliver live streaming video directly to Adobe‘s Flash Media Server 2.0 using Adobe's RTMP (Real Time Messaging Protocol).

Features of the On2 Flix Live application:

- Predefined encoding profiles to accommodate speeds from dial-up to high-speed broadband, at frame sizes from QCIF to D1;

- Captures live video from webcams, DV cameras, and a variety of professional capture cards and devices;

- Allows for simultaneous file write out for archiving purposes;

- Includes pre-build Flash players and HTML code for ease of web deployment;

- Supports NellyMoser audio output.

The Macromedia Flash Player is distributed more widely than any other software on the Internet, reaching over 98% of personal computers connected to the web. On2 Flix Live provides this massive audience with live video that is superior in quality and reliability to competing formats that require large media player downloads and complicated user configuration. Macromedia, now Adobe, selected On2 VP6 in 2004 as the advanced compression technology for its Macromedia Flash 8 family of products.

Commercial licensing for On2 Flix Live will be priced at $999/year. Discounted volume pricing will be available for qualified content delivery networks (CDNs). Interested parties should contact

sales@on2.com

.

The product requires Flash Media Server 2. Access to Flash Media Servers is available on a subscription through many web hosting and content delivery providers.

About On2 Technologies, Inc., The Duck Corporation

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. They operate with On2‘s Flix and On2 TrueCast software, as well as third-party products. On2's software is used by such leading global companies as Adobe/Macromedia, AOL, Skype, XM Satellite Radio, Sony, VitalStream, and Tencent. The On2 Video decoder has an installation base of millions through its inclusion in Adobe Flash Player, Skype 2, AOL Media Player, Viewpoint, and others. Located in New York City, the company has an office in Clifton Park, NY, and operations in Cambridge, UK. To contact On2, write to

sales@on2.com

or visit

www.on2.com

.

Trademarks mentioned in this release are property of their respective owners.

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