Verismo Networks Licenses On2 VP6 Codec for VuNow Internet TV Platform

Innovative IPTV devices earn On2 Certification to play content from leading video web sites

CLIFTON PARK, NY and MOUNTAIN VIEW, CA -- May 4, 2009 -- On2 Technologies (NYSE Amex: ONT) and Verismo Networks announced today that Verismo has licensed its On2 VP6 video codec for use in the Verismo VuNow Internet TV platform. The VP6 license and software integration enable Verismo VuNow devices to play VP6 video in resolutions up to and including 720p (HD model only). Both the standard-definition and HD versions of the VuNow PoD device have passed On2 Certification for playback of VP6 video.

VP6, through its inclusion in the Adobe Flash and Sun JavaFX application platforms, has become the video format of choice on popular sites including Hulu, NYTimes.com, CNN, Vimeo, Dailymotion, Toudou, 56.com and others, making VP6 playback a fundamental requirement for Internet-connected devices.

Verismo’s VuNow platform transforms the TV set into a powerful but easy-to-use multimedia hub for accessing digital entertainment from the Internet over wired or wireless home networks. The VuNow PoD device plays all leading video formats and supports HDMI (HD version only), RCA and S-Video output to interface with any TV or display. It achieves all this in a transportable case measuring no bigger than a pack of playing cards.

The VuNow PoD was recently voted Best New Product at Cable Labs Forum 2009 and won the Audioholics 2008 Consumer Excellence Award.

Consumers are increasingly choosing to watch video entertainment on PCs. In February 2009, U.S. viewers watched more than 13.1 billion online videos and viewing of longer-form programming is also growing rapidly, according to comScore Video Metrix. VuNow enriches the online video viewing experience by bringing those videos directly to the TV instead of the PC. VuNow users can enjoy movies, TV shows, sports, live events, travel, user-generated and other content from video sites around the world. The VuNow PoD offers a simple and intuitive user interface and takes just minutes to connect and set up.

“The VuNow platform is an important advance for consumers and truly brings Internet video into the home entertainment setting,” said Matt Frost, interim CEO of On2 Technologies. “VP6 supports rounds out the Verismo platform to enable playback of all popular Internet video formats on a TV, without a computer.”

“VuNow’s primary goal is to provide consumers with the broadest access to Internet video content directly on the TV,” said Prakash Bhalerao, Chairman and CEO of Verismo Networks. “On2 Technologies' field-proven codecs enable playing a large portion of the popular Internet videos on the VuNow platform.”

The VuNow platform with VP6 support enables consumers to watch all that content in the comfort of their living room instead of in front of a PC. Verismo’s VuNow platform transforms the TV set into a powerful multi-media hub with an unbelievable level of choice and ease in accessing digital entertainment. Verismo’s VuNow provides everything a consumer wants--access to the broadest online content, ease of use and installation, and compact size--all at an affordable price. VuNow offers the widest selection of Internet videos for the TV including videos from YouTube, videos from popular web sites, live TV channels, movies, as well as access to personal media (such as video, music, and photos) from the home network or USB-enabled storage devices. There is no subscription fees associated with VuNow; users simply plug in the box to the TV, connect to the Internet and get started.

The Verismo VuNow PoD is available for purchase at www.vunow.com and through Amazon.com. Volume orders are available through several OEMs and can be arranged by contacting Verismo Networks.

About On2 Technologies

On2 (NYSE Amex: ONT) creates advanced video compression technologies that power the video in today’s leading desktop and mobile applications and devices. On2 customers include Adobe, Skype, Nokia, Infineon, Sun Microsystems, Mediatek, Sony, Brightcove, and Move Networks. On2 Technologies is headquartered in Clifton Park, NY USA. For more information visit www.on2.com.

About Verismo Networks

Verismo Networks is redefining the home television experience by bringing millions of free internet videos around the world directly to your TV without a computer. Verismo Networks is a privately held company based in Mountain View, California, with offices in Bangalore, India. For more information visit www.verismonetworks.com.