Top Cat Player LLC Selects On2's VP5 for Adult Entertainment Application; Full Service IP Delivered VOD Solution Provider Offers Superior Full Screen Video.

On2 Technologies, Inc , the world's leading developer of video compression technology, today announced that Top Cat Player LLC will utilize On2's VP5 encoder software to supply the adult entertainment industry with a full-screen, full-frame-rate, secure Video on Demand (VOD) delivery system over the Internet.

Top Cat's VOD system utilizes a unique, patent pending, Content Block Delivery media player that combines the near instant delivery of video streaming with the video quality and network tolerance of downloading. Top Cat's software suite has built in digital rights management functionality and uses industrial strength encryption to secure content delivered using its proprietary media player.

"We have long been encouraged to enter the adult entertainment business, because it is the one Internet streaming segment that is clearly profitable," said Douglas A. McIntyre, On2 Chairman, President and Chief Executive Officer. "We decided that now was the right time after finding a high-quality partner like Top Cat," he added.

"Top Cat is committed to providing a full screen, TV quality, secure VOD programming solution to the adult entertainment marketplace," said Dan Barsky, President of Top Cat. "We chose On2's technology because it's state-of-the- art video compression codec, when coupled with our Content Block Delivery media player, yields the best video on the Net."

About On2 Technologies, The Duck Corporation

On2 Technologies is a video compression software company. 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 services. The Company has an office in Clifton Park, NY, and operations in Cambridge, UK. On2 may be reached at info@on2.com. Investor inquiries should be sent to invest@on2.com.

About Top Cat

Top Cat Player is the premier service provider of full screen, TV-quality, secure, VOD adult programming over the Internet. Top Cat's media player gives customers full personal video recorder functionality over licensed content. Top Cat offers a full range of service levels from end-to-end VOD services including servers, bandwidth, encoding and customized design services to basic licensing of its software suite.

CONTACT: Matthew Byrne, EVP of Global Sales of On2 Technologies, Inc, +1-212-947-7372; or Dan Barsky, President of Top Cat Player LLC, +1-212-875-1359

Web site: http://www.on2.com/