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Saturday, 07/05/2003 2:51:34 PM

Saturday, July 05, 2003 2:51:34 PM

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On2 6/03 equities presentation re 2003 guidance

Picosoft/Ninelanes boxes going to be marketed stateside
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on2/picosoft/equator/korea/adsl
On2 Lands ADSL Set-Top Box Deal in Asia
By NY Staff

Video compression specialists On2 Technologies (AMEX:ONT) announced a deal with Korea-based Picosoft Co. to design a low bit-rate ADSL video-on-demand set-top box.

The New York-based On2 said the device will use On2's VP4 compression codec, client and server software, and Equator Technologies' Dolphin reference design platform based on its MAP-CA chip; Web browser and e-mail clients would be included as well. The new set-top box will be capable of streaming DVD-quality video at connection speeds under 1 megabit per second

Picosoft would build the box for ADSL users in Korea and distribution into additional Asian markets. Manufacturing and integration work of the box is set to begin in the second quarter of 2002.

This is a seven figure deal that will start generating revenues for us this month, said Douglas McIntyre, On2's CEO and president.

In addition to the licensing fees the company will collect for each set-top box sold, On2 is taking in consulting fees for retrofitting the On2 compression applications with the other software applications in the boxes.

On2 will work with Picosoft and chipmaker Equator to configure the set-top boxes with video and audio operating systems and digital rights management functions; McIntyre reckons that between four and five million homes in Korea have broadband connections through ascynchronous DSL connections.

The only disadvantage to that kind of usage is that the subscribers farthest away from the ADSL central office have more signal degradation. That makes for plenty of market opportunities for On2's compression technology that helps the broadband provider squeeze more into the subscriber's bandwidth potential.

On2 makes money from licensing its video codecs for use in set-top boxes, electronic gaming devices and wireless applications. The company also offers video encoding, hosting, streaming and consulting services for streaming media plays.

December 12, 2001
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Picosoft Licenses SecureMedia's Encryptonite System to Secure
Broadband Video-On-Demand System

- Encryptonite to Protect DVD-Quality Video Delivered through ADSL Set-Top Box


NATICK, MA - March 21, 2002 - SecureMedia, Inc., a leading provider of encryption and Digital Rights Management (DRM) technology, announced today that Picosoft Co., Ltd., a leading application software developer based in Korea, has licensed SecureMedia's Encryptonite System for use in Picosoft's new broadband Video-On-Demand system and ADSL set-top box. The Encryptonite System will provide high security content encryption, key management, and rights enforcement for digital content delivered through the Picosoft system.

The Encryptonite System secures virtually any media type (ex. MPEG-2, MPEG-4, On2's VP4, RealMedia, MP3, etc.) for streaming and download distribution over IP and other digital data networks. As an open platform solution, the Encryptonite System also integrates readily with multiple hardware platforms and third party applications (e.g. e-commerce, billing, subscriber management, media asset management, etc.).

Picosoft's VOD system and set-top box will be capable of delivering DVD-quality video at connection speeds under 1 Megabit per second. The system employs the revolutionary VP4 video compression codec from On2 Technologies (AMEX: ONT) along with On2's playback and TrueCast server software. The set-top box is built on Equator Technologies' Dolphinä reference design platform, which is based on the MAP-CA Broadband Signal Processorä chip. The Picosoft set-top box is designed for the Korean ADSL market and will also be sold in other Asian markets.

Korea has more than 4.5 million ADSL subscribers, and we are extremely pleased to have been chosen by Picosoft to provide the essential content security infrastructure for their VOD system. The end users of the Picosoft system will experience the best that broadband can offer in terms of the instantaneous delivery of the highest quality video with the ability to pause, rewind and fast-forward playback at will, said Jack Oswald, CEO of SecureMedia, Inc.

Picosoft chose SecureMedia's Encryptonite System because it supplies comprehensive, high security encryption and rights management while also providing the flexibility to integrate easily with our other best of class component suppliers. We had evaluated other DRM suppliers, but SecureMedia was the only supplier who could deliver a cost effective solution for the set-top box we intend to deploy. With the Encryptonite System, Picosoft has completed a VOD solution that will allow service providers and content owners to satisfy the growing demands of broadband customers for enhanced, on-demand entertainment services, said Joohan Yoo, CEO of Picosoft Co., Ltd.

Douglas A. McIntyre, President and CEO of On2 Technologies added, We are proud to have been selected by Picosoft for their ADSL VOD service based on the superior performance of our VP4 codec over competing technologies. Working with SecureMedia is an added benefit as we will integrate their Encryptonite System with our leading compression technology to provide the highest quality and highest security video distribution platform.

About SecureMedia, Inc.
SecureMedia (http://www.SecureMedia.com) is a leading provider of encryption and rights management solutions for the delivery of IP Broadband Media, focusing on Video-on-Demand solutions in streaming and download modes. The Company provides a range of content security solutions from the comprehensive Encryptonite System to software toolkits, hardware cores and plugins for third party media delivery systems. SecureMedia's customers represent industry leaders such as RealNetworks (NASDAQNM:RNWK), Oak Technology (NASDAQNM:OAKT), NTT (NYSE:NTT), DivXNetworks, King Biscuit Entertainment Group, Tranz-Send Broadcast Network, InvisiMail Ltd., MediBridge and Communicado/Satlink. SecureMedia's investors include CB Capital Funds LLP, SONY Corp. (NYSE:SNE), Macrovision Corp. (NasdaqNM:MVSN) and Trans Cosmos Inc.

About Picosoft Co., Ltd.,
Picosoft (KOSDAQ:PICOSOFT) (KOSDAQ:39580.KQ) is a leading information technology company providing application software, online wagering solution, interactive gaming services, and digital set-top box for VOD services. Since its foundation in 1993, Picosoft has concentrated on developing user-oriented software and providing professional services specifically for small and medium companies. From 2001, Picosoft extended business area to Digital Media Services like VOD related services, DVD publishing system. The Company provides an interactive gaming solution that enables large scale transaction processing and network integration to domestic game service provider. (http://www.picosoft.co.kr)

About On2 Technologies, The Duck Corporation
On2 Technologies (AMEX: ONT) is a leading technology firm at the forefront of video compression. The Company revolutionized video encoding with the creation of its advanced full-motion, full-screen, video compression and streaming technology (TrueMotion VP3/VP4/VP5). On2 licenses its high quality video codecs for use in set-top boxes, consumer electronics devices and wireless applications. In addition, On2 offers a suite of products and services, including high-level video encoding, customized technical support, and consulting services. Headquartered in New York City, the Company has an office in Albany, NY, and operations in London, UK, and Seoul, Korea. On2 may be reached at 145 Hudson Street, New York, NY 10013, telephone 917-237-0500 ================================================
Picosoft Selects EnReach's Media Center Applications for Broadband VOD System

Business Editors/High Tech Writers
NAB 2002

LAS VEGAS--(BUSINESS WIRE)--April 8, 2002--EnReach Technology, Inc., a leading global provider of digital video entertainment solutions for broadband IP networks, announced today Picosoft Co., Ltd., a leading system integrator based in Korea, has selected EnReach's Media Center Applications and Backend Service Management System for inclusion in Picosoft's broadband video-on-demand (VOD) system.
EnReach's Media Center Applications enable VOD, web browsing and e-mail capabilities on the Picosoft set-top box. Picosoft's set-top box is powered by Equator Technologies, Inc. chip. EnReach has ported their media center applications onto Equator's platform for Picosoft's VOD system offering. In addition to Equator's platform, EnReach's applications have been ported to more than 16 different chipsets and popular embedded operating systems including Embedded Linux, VxWorks, and pSOS.
Picosoft will also utilize EnReach's Backend Service Management System to enable key functions such as set-top box registration, subscriber self-provisioning, service enable/disable, remote set-top box software upgrades, remote set-top box graphical user interface (GUI) customization, VOD server/service management, TV channel packaging, service charging policies, billing system interfaces and content distribution system interfaces.
We evaluated other middleware and application software companies and found that EnReach's Media Center Applications were the most portable and flexible for this system, said Joohan Yoo, CEO of Picosoft, Ltd. EnReach has ported to more than 16 different chipsets and operating systems and we felt their solid technology worked well with our other best-of-class component suppliers.
In addition to the selection of EnReach, Picosoft has teamed multiple leading technology vendors to successfully complete the VOD system offering capable of delivering DVD-quality video at connection speeds under 1 Megabit per second. The system employs On2 Technologies' (AMEX: ONT) VP4 video compression technology along with On2's playback and Truecast server software. The set-top box is built on Equator's Dolphin (TM) reference design, which is based on the BSP(TM) chip. SecureMedia Encryptonite System (TM) will provide high security content encryption, key management, and rights enforcement delivered through the Picosoft system.
There is a tremendous market opportunity in Korea and the Asia Pacific region for new broadband entertainment services. With more than 4.5 million ADSL subscribers in Korea, we are delighted to have been selected by Picosoft to play a pivotal role in their VOD system offering, said Bo Wu, President and CEO for EnReach. Additionally, the other component suppliers Picosoft has selected will provide content owners and service providers with a best-of-class VOD solution that will deliver the latest in digital video technology to subscribers throughout Korea and Asia.
Picosoft's VOD system will be deployed over Asymmetric Digital Subscriber Loop (ADSL) networks in Korea and other Asian markets. Roll out of the systems is slated for Korea and Japan in the fourth quarter of this year.

About EnReach

EnReach is a global provider of digital video entertainment solutions for broadband IP networks. EnReach has developed complete broadband-ready entertainment systems for Residential, MDU and Hospitality operators to offer revenue-generating services such as: VOD, TV over IP, Internet and E-mail to their subscribers. Headquartered in Silicon Valley, the privately held company has offices in Toronto, Canada, Hong Kong, Beijing and Shenzhen, China. Additional information regarding EnReach Technology, Inc. is available at www.enreach.com.

About Picosoft Co., Ltd.

Picosoft (KOSDAQ: PICOSOFT) (KOSDAQ: 39580.KQ) is a leading information technology company providing application software, online wagering solution, interactive gaming services, and digital set-top box for VOD services. Since its foundation in 1993, Picosoft has concentrated on developing user-oriented software and providing professional services specifically for small and medium companies. From 2001, Picosoft extended business area to Digital Media Services like VOD related services, DVD publishing system. The Company provides an interactive gaming solution that enables large scale transaction processing and network integration to domestic game service provider. (http://www.picosoft.co.kr)
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On2 Extends Relationship with Korean Software Company

Seoul, Korea and New York, NY, May 3, 2002 -- On2 Technologies Inc., The Duck Corporation (AMEX: ONT), the industry leader in compression technology, today announced Picosoft Ltd. is a reseller of its encoding and server software in Korea.

Picosoft Co., Ltd., one of the leading application software developers in Korea, and On2 previously announced they were developing a low bit-rate ADSL video-on-demand set-top box that features On2's VP4 video compression and TrueCast server technology. This additional agreement grants Picosoft the right to sell On2's VP4 and VP5 Encoders and TrueCast server software throughout Korea.

As we move forward with Picosoft in building the set-top box in Korea, they are a logical choice as a reseller. With their knowledge of the Korean market, we feel our VP4 and VP5 based products can achieve maximum distribution, said Douglas A. McIntyre, President and Chief Executive Officer of On2 Technologies.

VOD has tremendous potential in Korea and throughout East Asia. Korea already has more than 8 million broadband users and Picosoft's goal is to capitalize on this burgeoning market. The Picosoft-On2 set-top box will be the first product of its kind capable of delivering DVD-quality video at connection speeds under 1 Megabit per second over broadband IP, stated Juhan Yoo, CEO and founder for Picosoft. This reseller agreement will allow Picosoft to play a pivotal role in both the server solution and high-end encoding software markets for Internet PC, PDA, and set-top-box deployments, as well as allowing us to provide best-of-class services to major content owners by the second half of this year.
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Equator and Picosoft Introduce Low Bit-rate VOD Set-top Box

- BSP family of chips and Dolphin reference platform help Picosoft bring STB to production in record time -

CAMPBELL, Calif. - Aug. 20, 2002 - Equator Technologies Inc., a leading provider of high-performance, programmable and power-efficient system-on-a-chip processors for video streaming and image processing applications, and Picosoft Co. Ltd., a leading application software developer in Korea, today announced the development of a low bit-rate ADSL video-on-demand (VOD) set-top box based on Equator's high-performance, award winning MAP-CA processor. The Picosoft VOD system will be deployed over ADSL networks in Korea and other markets, with rollout scheduled for the fourth quarter of 2002.

The new set-top box was developed using Equator's Dolphin reference platform, which enables OEM manufacturers like Picosoft to bring new products into production in record time. To achieve high-quality video at the lowest possible bit rates, Picosoft chose On2 Technologies' VP4 video codec and TrueCast server technology, which allow the set-top box to provide DVD-quality video at bit rates lower than 1 Megabit/sec. Network operators can now offer high-quality video to nearly 100% of their customers without the significant investment in cable infrastructure that was previously required.

With In-Stat/MDR projecting 17 million subscribers worldwide for VOD over Internet in 2006, there is a tremendous market opportunity for ADSL-based set-top boxes, said Avi Katz, president and CEO of Equator. We are delighted that Picosoft selected Equator to play a pivotal role in their VOD system offering. By using our Dolphin reference platform to speed the time it takes to bring products to market, Picosoft was able to maintain focus on its core business of application software.

We selected Equator's MAP family of chips as it allows us to rapidly deploy advanced high-quality VOD services and significantly expand our product features. With the Equator Technologies, Inc. MAP-CA as the heart of our system, we can offer our customers a recurring value through product upgrades and feature additions, said Yoo Ju-Han, CEO of Picosoft. The Dolphin reference design significantly improved our time to market and gave us a jump on our competition.
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ONT COMPETITION
Leading Set-Top-Box Chip Makers Embrace Windows Media 9 Series

Broad Support by Equator Technologies, National Semiconductor, Sigma Designs, STMicroelectronics and Texas Instruments Paves Way for Next-GenerationHome-Entertainment Experiences With Digital Media

AMSTERDAM, Netherlands -- Sept. 12, 2002 -- Today at IBC2002, Microsoft Corp. announced that the leading manufacturers of chips for set-top boxes and next-generation digital media appliances have announced support for Windows Media (TM) 9 Series. Manufacturers announcing support for Windows Media Audio and Video 9 Series today include Equator Technologies Inc., National Semiconductor Corp., Sigma Designs Inc., STMicroelectronics and Texas Instruments Inc. This announcement, on the heels of the Windows Media 9 Series launch last week, paves the way for manufacturers such as Pace Micro Technology PLC to create set-top boxes with tremendous digital media processing power at a low cost while at the same time offering consumers new high-quality content delivery services over satellite, DSL and cable modems.

Windows Media 9 Series is a significant step forward in the evolution of digital television, especially for telcos and broadband network operators that deliver more content and services than ever, said Tim Fern, chief technology officer at Pace Micro Technology. Advanced silicon supporting Windows Media 9 Series has been important to our development of the world's first Windows Media 9 Series capable set-top box, which will be on show at IBC2002. Not only has it helped us make product costs viable, it has reduced our time to market -- crucial factors for our telco and operator customers.

Also at IBC2002, several companies will demonstrate for the first time how Windows Media 9 Series can be decoded and encoded at the chip level. Equator will be the first company to demonstrate high-definition video decoding of Windows Media at 720p (1280x720) on a chip -- video resolution that is two and a half times the resolution of a DVD today. Texas Instruments will be the first company to demonstrate encoding of Windows Media Video 9 directly on a chip. These breakthroughs in using Windows Media 9 Series video technology at the chip level will open up new consumer possibilities for next-generation set-top boxes delivering services directly over IP-based networks, new applications for encoding Windows Media Video and new consumer electronics devices. Windows Media Video 9 Series will offer significant advantages by allowing TV programming to be recorded in the same quality as MPEG-2 technology but tripling the storage capacity with its superior video compression.

Offering Windows Media 9 Series support at the chip level was the next logical step in our vision to enable seamless access to digital media content any time, any place and on any device, said Dave Fester, general manager of the Windows Digital Media Division at Microsoft. The breadth of support today shows that Windows Media 9 Series can flexibly offer the best quality audio and video at any bit rate and, by locking the video bit stream for silicon, create new opportunities for network operators, chip makers and consumer electronics device manufacturers.

Leading manufacturers of chips for set-top boxes that support Windows Media Audio and Video 9 Series announced today at IBC2002 include the following:

Equator Technologies' BSP series System-on-a-chip processors support playback of Windows Media 9 Audio and Video. The BSP-15, as demonstrated on Equator's Tetra (TM) hardware platform at IBC2002, supports high-definition 720p playback. Equator provides chips to many leading set-top box manufacturers, including Pace Micro Technology, a world leader in digital television technology, for its IP400 and IP500 family of home gateways.
National Semiconductor's Geode processors and Geode CS1301 media coprocessor support the playback and decoding of Windows Media Audio and Video. National Semiconductor currently provides chips to Pioneer for its recently announced DigitaLibrary Digital Network Entertainment device. National also provides chips to other Japanese manufacturers that will be announcing products later this year.
Sigma Designs' new EM8500 DVD decoder chip will support playback of Windows Media Audio, and a future series of decoder chips will support Windows Media Video as well. Sigma provides chips to Fujitsu Siemens Computers, Samsung Electronics Co. Ltd. and Kreatel Communications AB -- all leading sellers of set-top boxes in their respective markets.
STMicroelectronics is the world's leading supplier of MPEG-2-based chipsets to the set-top-box market. The ST200 family of media processors will support Windows Media Audio and Video 9 Series technologies and complement its OMEGA family of set-top-box and DVD decoder ICs. This will enable the combination of traditional digital TV and DVD platforms with a new range of audio and video applications enabled by Windows Media 9 Series.
Texas Instruments' fully programmable 600MHz TMS320C64x DSP platform uses Windows Media Encoder 9 Series to help bring convergence one step closer, enabling IP-based set-top-box OEMs to design an all-in-one product for digital media compression, streaming video transmission, HDD storage and more. This means that consumers using devices with this new chip can now play back and encode Windows Media 9 Series. This chip will open up opportunities for real-time encoding of content into Windows Media Video 9.
About Windows Media

Windows Media is the leading digital media platform, used by consumers, content providers, solution providers, software developers and corporations throughout the world. The new Windows Media 9 Series will power the next wave of digital media, delivering the best playback experience, unmatched audio and video quality, and integrated optional digital rights management technology, and is the most comprehensive platform for developing digital media products and services. The Windows Media platform includes Windows Media Player; Windows Media Services, the powerful streaming server for distributing content; Windows Media Encoder for content creation; Windows Media Audio and Video for the best-quality audio and video; Windows Media DRM for protecting content; and the Windows Media Software Development Kit for software developers. Windows Media Player, available in 26 languages, is the fastest-growing and now leading media player. More information about Windows Media can be found at http://www.microsoft.com/windowsmedia/.
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Emerging video codec set to draw crowd at IBC

By Junko Yoshida

EE Times
September 13, 2002 (10:03 a.m. ET)


AMSTERDAM -- As the International Broadcasting Convention (IBC) opens for business Friday (Sept. 13), a new video coding technology, formerly known as H.26L or MPEG-4 Part 10, will be a hot issue. New chips, evaluation boards and software tools targeting the emerging video codec have begun to trickle into private -- and even a few public -- demonstrations.

Chip companies and software technology vendors such as Amphion Semiconductor, Envivio, Equator Technologies, iVAST, Texas Instruments, UB Video and VideoLocus will unveil their strategies for the emerging video codec.

With the ability to reduce bandwidth by 50 percent or more, the yet-to-be-ratified standard is on the brink of turning today's video market upside down. The video-coding approach, now officially designated ITU-T H.264, or the Proposed JVT/AVC,promises to deliver Internet Protocol (IP)-based, broadcast-quality video at a data rate of less than 1Megabit per second.




The broadcasting industry's interest in the JVT/AVC codec is no longer just talk. For one, Europeans are already planning to include MPEG-4 audio and JVT/AVC video as new options for IP-based video delivery, by revising the current Digital Video Broadcast (DVB) specifications, Ken McCann, chair of the AV coding group at DVB, told EE Times. McCann, a director of ZetaCast, an independent technology consulting company specializing in DTV, said DVB's decision to go with JVT/AVC is not a done deal, but it's very near. Unless some work within JVT goes horribly wrong, DVB's AV coding group, working in concert with JVT/AVC, is well on its way to putting together JVT/AVC implementation guidelines for DVB's broadcast applications, he said.

JVT/AVC's coding efficiency, however, comes with a price. The consensus within the industry is that the gate counts of a new chip will likely increase at least threefold, compared with current MPEG-2 silicon. ZetaCast's McCann said the complex algorithm used in JVT requires a JVT chip to carry out at least two or three times more instructions in decoding.

McCann doesn't believe the complexity of JVT/AVC silicon will be hurt its chances of success. Rather, a potential barrier lies in intellectual property rights issues for JVT/AVC. Although the intention is to offer H.264's baseline profile free of charge, McCann doesn't believe this can be achieved. The licensing terms for JVT/AVC could be a lot more complex as fundamental techniques used in MPEG-2 are common to JVT, he added.
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Market Demand for Highest Quality Digital Video Drives DivXNetworks and Equator Alliance

- High quality DivX digital video powered by Equator's BSP-15 chip entices consumer video entertainment device manufacturers -

Amsterdam, Netherlands - Sept. 16, 2002 - DivXNetworks, Inc., the company that created the revolutionary patent-pending DivX video compression technology, and Equator Technologies, Inc., a leading provider of high-performance, programmable and power-efficient system-on-a-chip processors for video streaming and image processing applications, today announced an alliance to provide best-of-class, DivX-certified solutions for next generation consumer video electronics devices. The relationship between DivXNetworks and Equator will ensure that DivX-branded products provide consumers with the highest level of video quality and performance.

With over 65 million worldwide users, DivX is the leading video compression technology compatible with the MPEG-4 standard. The global market demand for DivX video compression technology among consumer electronics manufacturers is driving the need for best-of-breed video processing. Equator's BSP-15 system-on-a-chip solution provides the ideal platform for next generation DivX-powered consumer entertainment devices. At 400MHz, the BSP-15 system-on-a-chip delivers up to 40 GOPS of image processing power and high-definition delivery.

Equator is a natural partner to complement our focus on delivering the best DivX video experience to a wide range of consumer electronics devices and ensuring that those products reach the market in a timely manner, said Jordan Greenhall, co-founder and CEO of DivXNetworks, Inc. Equator's BSP-15 system-on-a-chip is a leading high performance processor at a price point appropriate for a wide range of consumer-electronics appliances, and it meets our rigorous technical demands for high-quality video.

Our fully programmable platform allows us to support market-accepted compression technologies with implementations available now for next generation consumer video entertainment device planning, said Avi Katz, president and CEO of Equator. DivXNetworks has a broad market following and we are excited to work with DivXNetworks and jointly meet the high quality video expectations.
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MPEG4 rivals are getting upper hand
H.264 is sometimes referred to as ‘part 10' of the MPEG4 standard. Equator Technologies' programmable video and image processors are the perfect solution for keeping up with the changing standards for video over IP. H.264 is just one such example. While fixed solution providers are worried over the potential adaption of non-MPEG-4 approaches, products using the BSP Family of chips are confident they can keep their customers current with the state of the art no matter what the improvements in compression technology.

MPEG4 rivals are getting upper hand
By Nick Flaherty

EE Times
September 20, 2002 (11:33 a.m. EST)

The current generation of the MPEG4 compression standard looks set to lose out in the broadcast field to technology from Microsoft and coding technologies under development.

Broadcast equipment leader Tandberg and receiver specialist Pace Micro Technology are both backing Microsoft's non-MPEG4- compatible Windows Media 9 (WM9) as the next wave for compressed media.

At the same time, the industry is still finding ways to get more out of the existing MPEG2 technology.




Charles Cartwright, product manager for advanced coding systems at Tandberg in the UK, said: MPEG4 doesn't offer enough advantage over MPEG2 to make it worth the swap. Windows Media 9 is definitely better than MPEG2.

Pace is backing a programmable approach for its Internet Protocol TV (IPTV) set-top box launched at IBC. Based around the BSP-15 chip from Equator Technologies, Pace's 440 and 442 are among the first set-top boxes to run WM9, although they can be programmed with MPEG4 and other proprietary codecs.

Fujitsu Siemens has also developed an IPTV set-top box, based around a PC architecture and running WM9. Further down the line, the H.264 standard threatens to supersede MPEG4. Work here is also led partly by Microsoft.

Philips demonstrated an H.264 codec at IBC, and Avi Katz, chief executive of Equator, says a codec will also be on his company's chips by the year-end.

H.264 is sometimes referred to as ‘part 10' of the MPEG4 standard. It will use the existing system infrastructure but will require more complex hardware for coding, meaning that existing MPEG4 decoders will not run it. This has led to the focus on WM9 for streaming video in applications such as video-over-broadband DSL lines.

Rob Koenen, president of the MPEG4 Industry Forum, said: The DVB Digital TV group is looking at going to MPEG4 part 10 straight away.

Supporters of MPEG4 say work should continue on the standard because of the need for open standards and multiple sources.

Envivio, a spin-off from France Télécom, has teamed up with French operator Canal+ to port an MPEG4 decoder for an interactive set-top box. Julien Signes, Envivio's president, said: MPEG4's an open standard and I think that's important to the operators.

Urgency over licensing

The MPEG4 Industry Forum (M4IF) is rushing to plug holes in the licensing and interoperability of the video compression standard.

Licensing issues over the current generation of MPEG4 delayed its commercial rollout until this month. The M4IF is determined that this will not happen with the next generation standard called H.264, or MPEG4 part 10.

Rob Koenen, the forum's president, said: Licensing this time will be much, much, much faster. The process started last week with the call for essential patents, and we are compressing into two months what took a year for MPEG4.

The M4IF has also joined with the Internet Streaming Media Alliance to work on the interoperability of different MPEG4 systems.
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On2 Ports New VP6 to Equator's Industry Leading BSP(TM)-15 Video Processor

Codec Delivers Low-bitrate, High-resolution Video Compression to Equator's Tetra(TM) Hardware Platform

On2 Technologies, Inc. (AMEX: ONT), a leading designer of software-based video compression algorithms and streaming technology, and Equator Technologies Inc., a leading provider of high-performance, programmable and power-efficient system-on-a-chip (SoC) processors for video streaming and image processing applications, announced today that On2's new VP6 codec has been ported to the Equator BSP-15 chip. The BSP-15, coupled with On2's VP6, works in conjunction with Equator's Tetra hardware platform, to offer a complete streaming video solution that delivers low-bitrate, high-resolution video-on-demand for set-top boxes and entertainment devices.

"The VP6 on our BSP-15 offers OEMs a solid solution for differentiating their set-top box offering for delivering streaming video to the home," said Rich Christopher, CEO of Equator. "We're excited to support On2's ongoing commitment to delivering powerful video compression technology. As an open source provider of programmable video processors, we find true value in being able to enable our customers with new technologies today, instead of tomorrow."

VP6 is the newest and most powerful codec offered by On2 and has been designed to support large image files, including high-definition, to deliver increased sharpness and resolution. The codec uses up to 50 percent fewer CPU cycles on DSPs allowing faster decoding times, for real-time and archived video, than its predecessor VP5. The VP6 codec also produces PSNR (peak signal-to-noise ratio) numbers that are superior to VP5 and other industry leading compression formats.

"Equator is our most enduring relationship in the DSP industry and we are pleased to announce that VP6 works on the BSP-15 and is available now, ahead of any other product in the market," said Douglas A. McIntyre, chairman, president and CEO of On2. "Equator and On2 have been producing a winning combination for more than two years, and this partnership now takes its next step to deliver next-generation VOD technology to the market."

About Equator Technologies Inc.

Equator Technologies is a provider of high-performance, programmable and power-efficient system-on-a-chip (SoC) processors for video streaming and image processing applications. Equator offers its proprietary BSP family of chips, iMMediaTools® software development toolkit, media libraries and reference platforms to more than 150 customers worldwide. Equator's video- centric SoC solutions are available for digital media, digital video communications and video security and surveillance applications. Founded in 1996, Equator is a privately held company headquartered in Campbell, California, with additional offices worldwide. More information about Equator is available online at www.equator.com.

About On2 Technologies, The Duck Corporation

On2 Technologies (Amex: ONT) is a leading technology firm at the forefront of video compression. The Company revolutionized video encoding with the creation of its advanced full-motion, full-screen, video compression and streaming technology (TrueMotion VP4/VP5/VP6). On2 licenses its high quality video codecs for use in set-top boxes, consumer electronics devices and wireless applications. In addition, On2 offers a suite of products and services, including 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. On2 may be reached at 21 Corporate Drive, Suite 103, Clifton Park, NY 12065 or info@on2.com or sales@on2.com.






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