On2 Technologies, Inc., announced that Macromedia, Inc. has completed integration of On2's award-winning VP6 compression technology into its family of Macromedia Flash Player 8 products -- announced earlier today. Macromedia's adoption of the VP6 codec will enable hundreds of millions of Internet users to experience the quality and feature-rich capabilities of On2's industry-leading video compression technology.

Additionally, On2 announced today that its entire line of Flix encoding tools for creating high quality Flash Video will be widely available this fall to the more than one million-strong community of Flash developers and digital media designers anticipating general availability of Macromedia Flash Player 8. On2 recently completed the integration of its VP6 video encoding technology into its industry-leading Flix line of Flash Video encoders to ensure availability timed with the first-customer-shipment of Flash Player 8.

"Today's announcement of Flash Player 8 is a watershed event for the worldwide community of Flash developers and digital media designers," said Douglas McIntyre, chairman, president and chief executive officer of On2 Technologies. "Macromedia's technological innovation combined with their creative vision has resulted in a family of products that will change the landscape of digital video creation and delivery to the masses. We're proud to partner with such an industry icon and participate in, what we believe, will be a fundamental shift in how high quality video imagery will be designed and delivered to millions of viewers around the globe."

On2 Flix Products for Creating High Quality Flash Player 8 Content

On2's new VP6-enhanced Flix family of video compression technologies include:

• Flix Pro - a powerful Flash Video encoder that enables users to edit, crop, convert and post video to the web in minutes;
• Flix Engine - enables users to add Flix's Flash Video encoding capabilities to their software and enables website visitors to convert their video, audio and image files to Flash. The Flix Engine also enables users to allow anyone within the intranet to have access to Flix solutions.

"We focused on taking Macromedia Flash Player 8 video capabilities to a new level and On2 Technologies' video codec is a key part of that effort," said David Mendels, general manager, Macromedia. "Because On2's video compression technology ensures millions of Internet users will experience high-quality and feature-rich Flash Video experiences, they are an important partner."

About On2's TrueMotion VP6 Codec

TrueMotion VP6 is a leading codec available for PC and set-top box applications. One of the most powerful codecs available, VP6 offers better quality and faster decode performance than codecs available in rival platforms such as Microsoft Media Player, Real Player and Apple QuickTime.

With the inclusion of On2's VP6 video codec, MacroMedia Flash 8 is set to become the platform of choice for delivering high quality video over the internet.