On2 Technologies Licenses Configurable Codec RTL to Taiwanese Baseband Manufacturer

January 8, 2008 -- On2 Technologies Inc. (Amex: ONT), a leader in video compression solutions, announced today it has signed an agreement with Infomax Co. Ltd. of Taiwan to integrate Hantro's 6280 encoder and 7190 decoder, RTL (Register Transfer Level) video codec designs in Infomax' next generation baseband processor targeted for mass-market feature phones.

Enabling real-time video encode and playback, the Hantro 6280 encoder and 7190 decoder configurable designs support MPEG-4, H.263, H.264 and VC-1 video formats as well as JPEG still images at up to 16MP. The codecs are an off-the-shelf solution for integration into chip designs. The RTL designs offload complex algorithms from the processor and make full motion video possible without the need for a costly, high-performance CPU and without unduly compromising battery-life.

'The RTL licensed by Infomax also includes our proprietary camera stabilization technologies and a host of post-processing features to ensure the end user video experience is absolute,' says Bill Joll president and CEO, On2 Technologies Inc. 'By Integrating these technologies to its baseband chip, Infomax is raising the bar in terms of video performance for mass market feature phone handsets.'

Dr. Hwa-Sheng Pyi, vp of product and technical development at Infomax commented: 'The configurability of the On2™ Hantro™ solution enables us to make optimal use of silicon area and achieve our target performance requirements. Furthermore, the MPEG-IF and IMTC testing the codecs are put through provides us with the interoperability assurance device manufacturers demand.'

About Infomax
Infomax Communication Co., Ltd. develops digital and analog Baseband chipset for GSM/GPRS/EDGE standard. InfoMax was formed on August 15th 2006 in Taiwan as a spin-off from Macronix Co. Ltd.

By using modularized design and open source infrastructure, Infomax is committed to provide innovative, robust and cost effective mobile SoC solutions that may enrich phone user's using experience with a very affordable cost.

For more information, please visit website www.infomax.com.tw.

About On2
On2 Technologies (Amex: ONT) ensures a compelling video experience for any video application anywhere. From low bit rate to high definition (HD), On2 provides optimized video compression technology enabling innovative solutions for application developers, content and service providers, chip vendors, device manufacturers, digital signage companies and beyond.

Through continual innovation On2 satisfies the toughest power, bandwidth and quality requirements for video. The company's proprietary (VP6, VP7) and standards based(MPEG-2, MPEG-4, H.263, H.264, VC-1) codecs dominate with more than 1 billion deployments in the internet and 200+ million in mobile and are proven in silicon with over 25 semiconductor manufacturers globally.

Established in 1992 and headquartered in Tarrytown, New York, On2 has offices and partners in Finland, Germany, UK, Japan, China, Taiwan and Korea. Customers include Nokia, Samsung, Sony, Freescale, AMS, Atmel, Adobe/Macromedia (Flash video), AOL, Sony, Skype, Facebook, VideoEgg, Brightcove, Move Networks and XM Satellite Radio. For more information please visit www.on2.com.