MNCast.com Launches Browser-Based Flash 8 Video Encoding Service for Consumers

Leveraging On2 Technologies' Flix Engine

Newly-Launched Flash 8 Video Publishing Service Debuts to Korean Consumers;

Logs Over 1.5 Million Visits Since December Debut

NEW YORK and SEOUL, South Korea, Jan. 3 /PRNewswire-FirstCall/ -- On2
Technologies, Inc. (Amex: ONT), today announced that MNCast.com has
embraced On2's Flix Engine Flash 8 video compression technology for
its newly launched browser-based video publishing service. Since
debuting on December 21, 2005, MNCast.com (http://www.mncast.com) has
already logged over 1,500,000 visitors and is well positioned to
become the premiere online community for consumers throughout Korea to
share high quality Flash 8 video.

MNCast.com leverages the On2 Flix Engine, On2 Technologies enterprise-
class Flash 8 video encoding software, in a custom tailored
browser-based Flash 8 video encoding service designed to enable
consumers, with a few clicks of the mouse, to upload, encode and view
high-quality Flash 8 video.

"MNCast.com is the latest in a growing wave of personal Flash 8 video
publishing services to appear in what is quickly becoming a global
phenomenon," said Douglas McIntyre, chairman, president and chief
executive officer of On2 Technologies. "The creative minds at
MNCast.com saw the opportunities that Flash 8 video can offer and
developed an innovative, custom tailored browser-based Flash 8 video
encoding service built on our On2 Flix Engine and are inspiring
hundreds of thousands of consumers throughout Asia to participate in
the Flash 8 video experience."

"Consumer demand for Internet video is growing tremendously in Korea,
Japan, China, and many other Asian countries," said Chris Kang, CEO
and president of MNCast.com. "We well know that Flash 8 video is very
attractive to our customers. Since we integrated the On2 Flix Engine
with our web site, we have had an excellent response from customers
using the video uploading services. In fact, we can directly attribute
new growth to this new capability. It's also becoming very clear to us
that high quality Flash 8 video made possible by the On2 Flix Engine
is very valuable to our customers and will have a tremendous impact on
the Internet video trend that is sweeping Asian markets today."

The On2 Flix Engine licensing and developer support for MNCast.com
were arranged by Ninelanes, Inc. (http://www.ninelanes.tv), On2's
exclusive software reseller in South Korea.

About MNCast.com

MNCast.com is a personal video publishing service, offering web-based
Flash 8 video sharing and uploading services. MNCast.com also provides
video searching services, leveraging user-contributed videos as a
database for searching video files. MNCast.com provides services to
many portal sites, such as Yahoo Korea. More than 300,000 people visit
MNCast.com every day. The Flash 8 video uploading program introduced
by mncast.com is now used by many companies such as Sony Korea, and
Sanyo Korea etc. The company is based at Sunkyunkwan University,
Seoul. For more information, please visit http://www.mncast.com or
contact mncast@mncast.com.

About On2 Technologies, Inc., The Duck Corporation

On2 Technologies (Amex: ONT) is a leading technology firm at the
forefront of digital video compression. The company revolutionized
digital media delivery with the creation of its advanced full-motion,
full-screen On2 Video compression and streaming technologies. On2
Video codecs are widely used in the Internet, video-on-demand, VOIP,
and mobile media markets. They operate with On2's Flix and On2
TrueCast software, as well as third-party products. On2's software is
used by such leading global companies as Adobe/Macromedia, AOL, Skype,
XM Satellite Radio, Sony, VitalStream, and Tencent. The On2 Video
decoder has an installation base of millions through its inclusion in
Adobe Flash Player, Skype 2, AOL Media Player, Viewpoint, and others.
Located in New York City, the company has an office in Clifton Park,
NY, and operations in Cambridge, UK. To contact On2, write to
sales@on2.com or visit http://www.on2.com.

Trademarks mentioned in this release are property of their respective
owners. SOURCE On2 Technologies, Inc.