Yamaha Licenses On2 Technologies' VP 6, VP7 Video Codecs

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Yamaha Corporation Licenses On2‘s VP6 and VP7 Video Compression Technologies for Use In Its LSI Multimedia Subsystems

NEW YORK, NY (September 25, 2006) - On2 Technologies, Inc. (AMEX:ONT) today announced a multiyear agreement with Yamaha Corporation (TSE:7951) to license its VP6 and VP7 video codec technologies.

Yamaha‘s decision to integrate On2 video technology demonstrates the momentum and relevance of On2‘s codec technology and is a powerful endorsement of the exceptional video quality and performance of On2 codecs on embedded devices.

“Yamaha has a long history of innovation in digital signal processing and system-on-silicon technologies. We look forward to working with Yamaha‘s world-class engineers to create the next generation of video systems,” said Dan Scherer, On2 Senior Vice President of Global Sales for DSPs and Devices.

“After extensive testing and evaluation we have selected On2‘s high quality VP6 and VP7 video compression technology,” said Tatsumi Ohara, General Manager of Semiconductor Division of Yamaha Corporation. “For our first application in the amusement area, we believe that On2‘s exceptional video coupled with Yamaha LSI technology significantly enhances the competitiveness of our product offerings. We expect to take further advantage of that performance in the future as we target major growth areas such as multimedia, broadcasting and communications.”

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, Brightcove and Tencent. 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

.

About Yamaha Corporation

For more information about Yamaha LSI technology, visit

http://www.global.yamaha.com

.

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

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