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XM Satellite Radio Selects On2 TrueMotion VP6


Codec Will Power Video Portion of Satellite Video Demonstration at CES

NEW YORK and LAS VEGAS, Jan. 5 /PRNewswire-FirstCall/ -- On2 Technologies,
Inc. (Amex: ONT) today announced at the 2005 Consumer Electronics Show (CES)
that XM Satellite Radio will use its TrueMotion VP6.2 video compression
technology in XM's in-vehicle prototype video entertainment system.
The new system will be used to transmit video entertainment to satellite
receivers in automobiles. The video signal will be used primarily for back-
seat entertainment with content that can be either streamed in real time or
and cached for later playback.
After evaluating codecs from several other vendors, XM selected TrueMotion
VP6.2 because of its excellent performance in this kind of environment. In
XM's tests, competing video codecs failed to achieve the same results.
XM and its automotive equipment partners are demonstrating the satellite
entertainment prototype in a new technology showcase vehicle this week at CES
in Las Vegas.
On2 is also attending CES and giving private demonstrations of their new
products in a suite at the MGM Grand hotel. CES attendees who are interested
in visiting the On2 suite can call (917)-865-2143 to make an appointment.
"As XM continues to expand the possibilities of satellite entertainment
technology and content, we have incorporated On2's video technology for its
quality in both streaming and cached playback applications," said Stuart Cox,
XM's Vice President, Advanced Applications.
"The XM deal illustrates once again how TrueMotion excels in diverse
applications where quality is the highest priority," said Douglas A. McIntyre,
On2's Chairman, President, and CEO. "This opportunity opens up the markets for
consumer electronics devices for On2's technology in ways that none of our
previous customer relationships have."

About On2 Technologies, The Duck Corporation
On2 Technologies (Amex: ONT) is a leading technology firm at the forefront
of video compression. The company revolutionized digital media delivery with
the creation of its advanced full-motion, full-screen, TrueMotion(R)
VP4/VP5/VP6 compression and streaming technologies. On2's TrueMotion codecs
are used extensively in the video-on-demand, videoconferencing, Internet
media, surveillance, and store-and-play markets. They operate with On2's own
TrueCast Server and Player software, as well as third-party player and server
products. On2's software is used by such leading companies as Sony, NTT, AOL,
BBC, ABC News, Nullsoft, SeaChange International, China Netcom, NHK, and
Nanwang Multimedia. The VP6 decoder has an installation base of millions
through its inclusion in AOL 9 Media Player, Winamp 5, Viewpoint Media Player,
and others. On2 licenses its software for use in set-top boxes, consumer
electronics devices and wireless applications and offers 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. To contact On2 write to [e-mail] or visit
http://www.on2.com.

About XM Satellite Radio
XM Satellite Radio (Nasdaq: XMSR) is America's number one satellite radio
service with more than 3.1 million subscribers. Broadcasting live daily from
studios in Washington, DC, New York City and Nashville at the Country Music
Hall of Fame, XM's 2005 lineup includes more than 130 digital channels of
choice from coast to coast: 68 one-hundred-percent commercial-free music
channels, featuring critically-acclaimed original programming, concerts, and
diverse musical genres ranging from hip hop to opera, classical to country,
bluegrass to blues; more than 40 channels of premier sports, talk, comedy,
children's and entertainment programming; and 21 channels of the most advanced
traffic and weather information for major metropolitan areas nationwide. XM
was named Best Radio Service at the 2004 Billboard Digital Entertainment
Awards. Popular Science recently chose XM products for two prestigious "Best
of What's New 2004" Awards. As the Official Satellite Radio Network for Major
League Baseball (MLB) and the Exclusive Satellite Radio Service for NASCAR, as
well as the Official Satellite Radio Service for ACC, PAC-10 and Big-10
collegiate football and basketball, XM Satellite Radio is the industry leader
in sports radio programming, offering thousands of live sporting events each
year.
XM, the leader in satellite-delivered entertainment and data services for
the automobile market through partnerships with General Motors, Honda, Toyota,
Nissan and Volkswagen/Audi, is available in more than 120 different vehicle
models for 2005. XM also is available in Avis, National, and Alamo rental
cars, and will soon be available on JetBlue and AirTran Airways. Consumers
can experience XM over the Internet through XM Radio Online at
http://listen.xmradio.com. For more information about XM hardware, programming
and partnerships, please visit http://www.xmradio.com.