March 19th, 2002

US Codec Developer Strengthens Marketing and Technical Support In Its Largest Territory

Tokyo, Japan and New York, NY, March 19, 2002 - On2 Technologies Inc., The Duck Corporation (AMEX: ONT), the industry leader in compression technology, today announced that Media Cruise Solutions, K.K. (MCS) is its exclusive reseller of encoding and server software in Japan.

Under the arrangement, MCS, whose primary shareholders are SGI Japan, NEC, Toppan Printing, NTT Software and BSI, will have the sole rights to license On2's groundbreaking audio and video compression software in Japan. MCS will also oversee the sale of On2's encoding and server software, and RealServer plug-ins. The deal encompasses the licensing of VP4, VP5 and AVC as well as future versions of the company's technology. The contract is for three years, effective immediately.

On2 is also a minority shareholder in MCS.

MCS and On2 have been developing an ADSL set-top box utilizing On2's VP4 video compression and TrueCast server technology over the past six months.

'Our relationship with MCS over the last several months has shown us that they are the only logical company to represent our interests in Japan. Their executive leadership, business development, technical skill and relationships in their home market made this an easy decision. We could not be more enthusiastic about endorsing a partner in a major market like Japan,' said Douglas A. McIntyre, President and Chief Executive Officer of On2 Technologies. 'We expect that this market, which is already our largest, will continue to grow at a very rapid pace and having the best partner is essential.'

'We are delighted to announce our exclusive relationship with On2 during this exciting period for broadband in Japan. We have seen strong growth in broadband adoption in Japan, especially in the ADSL market. On2's technologies and products fit the market well by providing high-quality video at a variety of data rates,' stated Souji Goromaru, President of MCS. 'In addition, On2 is very flexible and agile in accommodating Japanese customers' requirements. This exclusive relationship will expand MCS' position as a leading broadband solutions provider.'