On2 Technologies, Inc., and Skype, the global Internet communications company, announced that the beta version of Skype 2.0 -- the newest version of Skype's revolutionary software that allows anyone with an Internet connection to make free Internet calls -- uses On2 codec technology to deliver high quality video. Announced earlier today, the new Skype Video offering allows Skype users to see and send real time video as they Skype with their friends, family and colleagues.

We created Skype 2.0 to be fun and easy to use, with enhanced features that allow people to effortlessly stay in touch and express themselves online," said James Bilefield, vice president of business development for Skype. "On2's video compression has helped enable the quality of Skype Video."

Skype has licensed current and future versions of On2 Technologies video compression software, the TrueMotion video codec, and has worked closely with On2 to integrate its compression technology with Skype 2.0 to ensure a superior Internet calling experience for Skype users worldwide.

"We are extremely enthusiastic that Skype has chosen On2 video codecs for Skype 2.0. Their endorsement of our solution is a significant validation of our efforts," said Douglas A. McIntyre, chairman, president and chief executive officer of On2 Technologies. "We look forward to working with their engineering group to bring Skype customers the highest quality two-way video available anywhere in the world."

Available in 27 languages, Skype is being used by people in almost every country around the world, and Skyping has become a global phenomenon. The latest version of the software has further simplified the Skype interface, making it even easier for people to see and speak with their family, friends and colleagues.