January 4th, 2001

Customized Solution Enables Customers to Marry Print and Broadcast Campaigns on the Internet

New York, NY, January 4, 2001 -- On2.com Inc. (ASE: ONT), a leading broadband technology and services company specializing in providing television-quality streaming video over the Internet, and Traffix, Inc. (NASD: TRFX), a database marketing and management company, today announced that they have entered into a joint agreement to provide customers with a technology solution for targeted and integrated advertising and promotional campaigns.

The new solution, which combines On2's TV-quality video with Traffix's vast consumer database, will be marketed to potential customers immediately.

'By collaborating with Traffix, our two companies will be able to create a highly targeted and effective solution that is much needed in the world of online marketing,' said Douglas A. McIntyre, president and CEO of On2. 'On2's leading VP3 compression technology will enable customers to provide their targeted audience with engaging, full-screen, full-motion, TV-quality video ads and promotional campaigns.'

The agreement calls for the two companies to co-develop a marketing solution that enables customers to seamlessly marry their print, broadcast and promotional campaigns. As part of the agreement, On2 will encode video advertisements for insertion into an electronic message. Traffix will then draw from their permission-based database, which consists of millions of unique names and e-mail addresses, to deliver the message to a targeted consumer. In addition, On2 and Traffix will provide customers with the opportunity to run their campaigns on Traffix's leading gaming Web site, GroupLotto.com.

'By partnering with On2 and applying their streaming technology, we are now in a position to deliver rich, captivating content and marketing messages to our large and growing profiled permission based email database,' commented Jeffrey Schwartz, CEO of Traffix, Inc. 'I firmly believe that this is the future of targeted e-mail marketing.'