February 2nd, 2001

On2's Leading Compression Technology to Power New Fusion Area

New York, NY, February 2, 2001 -- On2.com Inc. (ASE:ONT), a leading broadband technology and services company specializing in providing television-quality streaming video over the Internet and to consumer electronic devices, and CountingDown.com, the World's Ultimate Fan site for film and entertainment, announced today that they will jointly launch Fusion, a short film destination area on Countingdown.com. Fusion will feature over 50 award-winning short films encoded and displayed in On2's full-screen, TV-quality VP3 format. The site is expected to launch on February 15th.

'The entertainment community continues to embrace On2's technology,' said On2 President and CEO Douglas McIntyre. 'We are very pleased with our agreement with CountingDown.com and look forward to bringing new short films to the Internet in the highest possible quality.'

'On2's full-screen technology was a perfect fit for Countingdown.com' said Countingdown's CEO Charles Segars, 'we are looking forward to working with them.'

CountingDown.com is a fan-run website dedicated to tracking and creating large on-line communities for up and coming feature films. The new Fusion area of the site will showcase up to five new short films per week from both the Countingdown.com and Quickband film libraries. Fusion will also offer its short films in additional video formats, with On2 remastering and encoding all assets.

On2 is able to reach unparalleled levels of quality by combining its proprietary Internet multimedia codec with its unique remastering process. In order to ensure optimum video delivery over the Internet, On2's video engineers undergo a detailed process to convert all videos to their original frame rate, correct black, white, and gamma levels, fix stereo imbalances and offer key framing, balancing, masking, and cropping in order to maintain the proper image size and proportions.