On2 Licenses Video Technologies To MediaTek Inc.

Tarrytown, NY -- February 12th, 2008 -- On2 Technologies, Inc., a leader in video compression technologies, announced today that it has licensed Hantro™ embedded software video codecs to MediaTek Inc. , a global leader in fabless semiconductor for wireless communications and digital media solutions. The agreement, signed on Dec 27, 2007, will allow MediaTek to provide the On2 codecs along with its baseband chipsets to mobile handset manufacturers.

On2’s Hantro embedded video software codecs provide chip and device manufacturers with a fast way to enable compelling video performance for applications such as: player / streamer, video telephony and mobile TV. Highly optimized for the mobile environment, the codecs save battery-life through the efficient use of available processor resources and are designed to facilitate porting to multiple wireless platforms.

“"This is a significant agreement for On2 as MediaTek is a clear market leader for baseband IC products,"” says Bill Joll, President and CEO of On2. “"Through MediaTek we expect our Hantro embedded software codecs will be integrated to many mobile phones targeted for high volume market segments."

By licensing the Hantro codecs MediaTek are able to offer their handset customers IMTC and MPEGIF interoperability proven support for popular video formats.

“"We chose On2 because of their solutions combined with the best performance and image quality with lowest power consumption,"” says JiChang Hsu, General Manager, Wireless Communication Business Unit, MediaTek Inc.  “"Furthermore, as a technology vendor they are a highly professional organization, setting the benchmark for support.”"

About MediaTek Inc.
MediaTek Inc. is a leading fabless semiconductor company for wireless communications and digital media solutions. The company is a market leader and pioneer in cutting-edge SOC system solutions for wireless communications, high-definition digital TV, optical storage, and high definition DVD products. Founded in 1997 and listed on Taiwan Stock Exchange under the code '2454', MediaTek is headquartered in Taiwan and has sales and research subsidiaries in Mainland China, U.S. , England,Ireland, Denmark, India, Japan, Korea and Singapore. For more information, please visit MediaTek’s website at www.mediatek.com.

About On2
On2 Technologies (AMEX: ONT) ensures a compelling video experience for any video application anywhere. From low bit rate to high definition, 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 quality, bandwidth, and power requirements for video. The company's proprietary (TrueMotion® VP6™, VP7™) and standards based (MPEG-2, MPEG-4, H.263, H.264, VC-1) codecs dominate the video market, with more than 1 billion deployments on desktops worldwide and more than 200+ million in mobile; they are also 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, Korea and India. Customers include Nokia, Samsung, Freescale, AMS, Atmel, Adobe/Macromedia, AOL, Sony, Skype, Facebook, VideoEgg, Brightcove, Move Networks and XM Satellite Radio. For more information please visit www.on2.com.