June 7th, 2005

New York, NY (June 7, 2005) -- On2 Technologies, Inc. (AMEX: ONT), today announced it has signed an agreement with the Media and Entertainment division of Autodesk, Inc. to license On2 Technologies' Flash video encoding technology. As a result of this agreement, On2 Technologies can be used to enable upcoming new versions of Autodesk digital media products to publish video in emerging .FLV and .SWF formats—the internet video formats supported by the Macromedia Flash player, the most widely distributed player over the Internet.

'This agreement with Autodesk is a significant milestone for On2; we're executing our strategic plan well and partnering with industry leaders to ensure On2's encoding technology becomes ubiquitous, and synonymous with pristine quality digital media delivery,' said Doug McIntyre, chairman, president and chief executive officer of On2 Technologies. 'Autodesk has earned a reputation among discriminating digital media artists around the world as a provider of the industry's highest quality tools. Integrating our technologies is a natural fit for both companies and we look forward to working closely with such industry icons.'

'We are constantly expanding the capabilities of our digital content creation tools to take advantage of new and innovative delivery and distribution formats,' said Bill Roberts, director of product management, Autodesk Media and Entertainment division. 'On2 Technologies shares our commitment to excellence, innovation, image quality and a keen understanding of our customers' needs.'

Autodesk plans to include On2's Flash video encoding technologies with possible new versions of its award-winning digital media products. Details of new Autodesk products that would include On2's technology are expected to be announced this year.

About Autodesk
Autodesk, Inc. is wholly focused on ensuring that great ideas are turned into reality. With six million users, Autodesk is the world's leading software and services company for the building, manufacturing, infrastructure, digital media, and wireless data services fields. Autodesk's solutions help customers create, manage, and share their data and digital assets more effectively. As a result, customers turn ideas into competitive advantage by becoming more productive, streamlining project efficiency, and maximizing profits. Founded in 1982, Autodesk is headquartered in San Rafael, California. For additional information about Autodesk, please visit www.autodesk.com.

About On2 Technologies, Inc., The Duck Corporation
On2 Technologies (Amex: ONT) is a leading technology firm at the forefront of video compression. The company revolutionized digital media delivery with the creation of its advanced full-motion, full-screen, On2 Video compression and streaming technologies. On2 Video codecs are used extensively in the video-on-demand, videoconferencing, Internet media, surveillance, and store-and-play markets. They operate with On2's own TrueCast Server and Player software, as well as third-party player and server products. On2's software is used by such leading companies as Sony, XM Satellite Radio, NTT, AOL, BBC, ABC News, Nullsoft, SeaChange International, and Macromedia. The On2 Video decoder has an installation base of millions through its inclusion in AOL 9 Media Player, Winamp 5, Viewpoint Media Player, and others. On2 licenses its software for use in set-top boxes, consumer electronics devices and wireless applications and offers high-level video encoding, customized technical support, and consulting/integration services. Located in New York City, the company has an office in Clifton Park, NY, and operations in Cambridge, UK. To contact On2 write to sales@on2.com or visit http://www.on2.com.