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Alias Born 02/06/2007

Re: december post# 2

Friday, 02/23/2007 2:27:25 PM

Friday, February 23, 2007 2:27:25 PM

Post# of 8
Company Summary

On2 Technologies, Inc. is a video compression technology firm that has developed a proprietary technology platform and the TrueMotion VPx family (VP5, VP6, VP7) of video compression/decompression (codec) software to deliver video over proprietary networks and the Internet to set-top boxes, personal computers and wireless devices. The Company's video compression software is based solely on intellectual property that it developed and owns. Its service offerings include customized engineering, consulting services, technical support and high-level video encoding. It licenses and develops a number of products related to TrueMotion line of codecs and TrueCast line of server and player products. The licensing of its proprietary TrueMotion codec and TrueCast server technology accounted for 29% of revenue for the year ended December 31, 2005. Fees derived from engineering and consulting services accounted for 7% of revenue in 2005.

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