On2 Technologies Licenses VP7 Video Codec To Westec Interactive

-- On2 Technologies (NYSE Amex: ONT) announced today it has licensed its proprietary On2 VP7 video compression technology to Westec Interactive, an innovator in the field of intelligent video surveillance. Westec will integrate the VP7 video codec to its Digital Video Recorder (DVR) to increase the quality of stored video without compromise.

On2 VP7 is a highly efficient video compression algorithm that provides up to 30% better compression than the best competing H.264 encoders on the market today. The codec incorporates several features tailored specifically for stable camera encoding, typical with security camera and video conferencing applications.

One VP7 feature, "Golden Frames," delivers substantial data rate savings by storing a reference frame from an arbitrarily distant past point in the video stream. A complete background image--for example, a street at a shopping mall--is stored as a reference frame with only the changes in the foreground, such as people walking by, needing to be encoded and transmitted.

For more information about the On2 VP7 please visit www.on2.com/on2video.

Westec's state-of-the-art Digital Video Recorder (DVR) is at the core of its video surveillance system. The DVR offers far more than traditional CCTV monitoring and analog video recording. The DVR is driven by a powerful software engine that controls digital video display and playback (both in multiplex view) and that also serves as the integration and control point for your security system. Capable of supporting as many as 16 surveillance cameras, the DVR is the central navigation point for a security system. Using the on-screen interface, you can view live digital video streams, access archived video for multiplex playback, and access system configuration screens.

"On2 and Westec have had a long-term strategic relationship, and we believe that Westec Solutions provides the best surveillance platforms available today," said Jim Bankoski, Chief Technology Officer for On2. "We are proud to play a part in helping them deliver outstanding video quality and clarity on their systems."

"Adopting the On2 VP7 video codec was a logical extension of our long-standing relationship with On2," said Jon Bolen, Chief Technology Officer for Westec. "By taking this important step forward Westec customers will see better images and will be able to store more video locally with no reduction in video quality. These improvements translate directly to improved security and improved return on investment for Westec customers at a time when both are incredibly important."

About On2 Technologies
On2 (NYSE Amex: ONT) creates advanced video compression technologies that power the video in today's leading desktop and mobile applications and devices. On2 customers include Adobe, Skype, Nokia, Infineon, Sun Microsystems, Mediatek, Sony, Brightcove, and Move Networks. On2 Technologies is headquartered in Clifton Park, NY USA. For more information visit www.on2.com.

About Westec Intelligent Surveillance
Westec provides video surveillance solutions to over 6,000 businesses across the US. Their customers range from small independent owner-operators to large Fortune 500 chains in the restaurant, jewelry, convenience store and specialty retail industries. Westec provides the latest in technology and interactive, real-time monitoring by trained specialists through their state of the art Central Command Center which operates 24/7 and is the only service provider to offer two-way audio capability which allows the intervention specialist to talk directly into the location. Customers can purchase the system or subscribe to the service which provides free maintenance, upgrades, replacements and diagnostics making usage absolutely hassle-free. Clients include McDonald's, White Castle, Jack in the Box, ConocoPhillips, E-Z Mart, Zales, Jared, Kay Jewelers, La Quinta, Red Roof Inn and Charming Shoppes. For more information visit: www.westec.net.