PowerLinx Inc (PWNX)

[gotinearly]

NEW YORK & TIERRA VERDE, Fla., Jan 5, 2004 (BUSINESS WIRE) -- PowerLinx Inc. (PWLX) and On2 Technologies, Inc. (ONT) today announced that PowerLinx will use the On2 VP6 codec in its next generation digital commercial security products. PowerLinx unique, patented application allows video to be captured live and sent over power lines in AC or DC environments on any power grid.

The On2 VP6 codec will allow PowerLinx to get high quality video capture and decoding with a minimum amount of bandwidth making it substantially easier to transmit video at low data rates. Further, the use of the On2 VP6 codec eliminates royalties associated with other compression technologies.

"PowerLinx has one of the leading edge powerline technologies currently available in the world. Our relationship in the security area could well expand to other applications such as sending video from a broadband connection to a number of screens in the home. The current application certainly allows multiple cameras to be deployed over the electric grid which cuts installation and maintenance costs considerably," said Douglas A. McIntyre, On2 Chairman, President and Chief Executive Officer

"The On2 VP6 codec enhances a system that is already more cost efficient for security applications than anything else on the market. Initially we intend to use VP6 with our commercial and industrial PowerLinx security products which include the PowerLinx Parking Lot Surveillance System. We look forward to exploring future product launches with On2," explained George S. Bernardich III, PowerLinx Chairman & CEO.

PowerLinx will demonstrate all of its PowerLinx products including those that will incorporate the new VP6-based codec during the 2004 International CES in Las Vegas from January 8 to January 11, 2004. The products will be shown at the PowerLinx suite in the Luxor Hotel. Interested parties can make appointments by calling [phone] x212 or [phone], or by emailing [e-mail].

To learn more about the 2004 International CES, visit http://www.cesweb.org.

About PowerLinx, Inc.:

PowerLinx, Inc., http://www.power-linx.com, designs, manufactures and markets, among other devices, products and applications developed to transmit voice, video, audio and data either individually or any and all combinations over power lines, in AC and DC power environments, on any and all power grids. The Company has also developed and manufactures different kinds of underwater video cameras, lights and accessories for the marine, commercial and consumer retail markets.

About On2 Technologies, Inc.:

On2 Technologies, Inc., http://www.on2.com, originally known as the Duck Corporation, has been a leader in the design of software based compression algorithms and related products for over ten years. As the world's premier codec developer, On2 creates advanced full-motion, full-screen video compression technology that has revolutionized the industry. With our codecs, broadcast quality video (DVD) can be compressed to one megabit (.12 megabytes) per second or less.