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Chinese Newspaper 'Cankao Xiaoxi' Article Reports on On2 Relationship With Beijing E-world In November 11 Edition
November 17, 2003: 8:25 a.m. EST



NEW YORK and BEIJING (PRNewswire) - NEW YORK and BEIJING, Nov. 17 /PRNewswire-FirstCall/ -- On2 Technologies, Inc. today announced that the "Cankao Xiaoxi," published by China's official news organization, has published an article describing the cooperation between On2 and Beijing E-world in its November 11, 2003 edition. The article, entitled "New Road To 'Made in China,'" ran in advance of On2's previously announced meetings in China this week.

The article, published only in Chinese, made several points about the relationship between the two companies, which was officially established by contract last June. These included:

-- A U.S. listed company, On2 Technologies is a world leader in the

research and development of video compression. Beijing E-world has

extensive cooperation with On2 in the technology area.

-- The cooperation between On2 Technologies and E-world is a win/win

situation because through the partnership On2 acquires special

marketing rights to the large Chinese market. As for E-world, it has

obtained the right to use one of the world's most advanced codec

technologies.

-- On2 and E-world have already discussed further plans for after the

launching of the EVD standard. These include developing several new

products, first targeting the Chinese domestic market and then the

international markets.

Commenting on the article, On2 Chairman, President and Chief Executive Officer Douglas A. McIntyre said: "It is really gratifying to arrive in China and be greeted by a press account of our relationship that affirms the bonds between our two companies."

About On2 Technologies, The Duck Corporation

On2 Technologies 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(R) 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 [e-mail] or [e-mail].

On2 Technologies, Inc.