ON2 fka ONT

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Kaplan Fox Investigates
Kaplan Fox Investigates Possible Securities Laws Violation by On2 Technologies, Inc.

New York – June 4, 2008 – Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) has been investigating On2 Technologies, Inc. (Amex: ONT ) (“On2” or the “Company”) for potential violations of the federal securities laws. Investors who purchased On2 common stock between August 14, 2007 and May 27, 2008 (the “Class Period”) may be affected.

A complaint has not yet been filed. We are, however, investigating whether On2 and certain of its officers and directors violated the Securities Exchange Act of 1934, by making materially false and misleading statements and/or failed to disclose the following adverse facts which they knew or recklessly disregarded: (1) documentation for at least two sales accounts for which revenue had been recognized in the third quarter of 2007 had been falsified; (2) the Company improperly recognized revenues during both the second and third quarters of 2007. Kaplan Fox is also investigating whether, as a result of these alleged misrepresentations, On2’s stock traded at artificially inflated prices throughout the Class Period.

On May 27, 2008, On2 announced that the Company’s previously issued financial statements for the second and third quarters of 2007 can no longer be relied upon and will be restated due to errors in those financial statements related to the Company’s recognition of revenue. On2 stated that with respect to four of the accounts that the Company incorrectly recognized revenue of $185,000 for the second quarter of 2007 and $589,000 for third quarter of 2007. With respect to the fifth account, that the Company determined that it should establish an additional bad debt reserve of approximately $383,000 in the fourth quarter of 2007. On2 also announced that during the preparation of the Company’s 2007 annual financial statements, prior to discovery of the falsified documentation, its management determined that revenue of $42,000 had been incorrectly recognized in the third quarter of 2007.

If you purchased On2 common stock between August 14, 2007 and May 27, 2008 and would like to discuss our investigation, please e-mail us at [e-mail] or contact:

Frederic S. Fox
Joel B. Strauss
Donald R. Hall
Jeffrey P. Campisi
Iona Evans
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
[phone]
[phone]
Fax: [phone]
E-mail address: [e-mail]

Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400
San Francisco, California 94104
[phone]
Fax: [phone]
E-mail address: [e-mail]