NEW YORK, Aug. 9 /PRNewswire-FirstCall/ -- On2 Technologies, Inc. (AMEX:ONT) , today announced an incentives program to reward customers for early adoption of its newest line of Flix encoding tools for Macromedia(R) Inc.'s Flash Player 8, which was announced yesterday and will be available this Fall. As part of the incentives program, customers who pre-purchase the new version of Flix Pro 8 after August 8- will be able to take advantage of a special, discounted price and will also receive the current version of Flix Pro to use until Flix Pro 8 is officially released. The new versions of On2's Flix 8 Flash video encoding tool includes the Company's VP6 video encoding technology, ensuring the highest image quality Flash Video output in the industry.

"As we've contended, we believe the launch of Flash Player 8 is one of the most important developments in rich media design and delivery on the Internet. And our customers are telling us the same thing," said Douglas McIntyre, chairman, president and chief executive officer of On2 Technologies. "We've launched this incentives program because we want this extremely excited community of more than one million Flash developers to immediately start thinking about Flash Video for Flash Player 8. This program puts the highest quality encoding tools right in their toolbox when the Flash Player 8 is available."

Flix Pro 8 is a powerful Flash video encoder that enables users to edit, crop, convert and post video to the web in minutes.

About On2's TrueMotion VP6 Codec

"TrueMotion VP6 is a leading codec available for PC and set-top box applications. One of the most powerful codecs available, VP6 offers better quality and faster decode performance than codecs available in rival platforms such as Microsoft Media Player, Real Player and Apple QuickTime.

With the inclusion of On2's VP6 video codec, MacroMedia Flash 8 is set to become the platform of choice for delivering high quality video over the internet.

Pricing and Availability

Customers pre-purchasing the new version of On2's Flix Pro 8 Flash video encoding tool after August 8 and before the general availability of Flash Player 8 will be able to purchase at a discounted price and will receive a copy of the current version of Flix Pro to use until On2 makes Flix Pro 8 generally commercially available for license.

Flix Pro for Flash Player 8 will be integrated with the Company's VP6 encoding technology for high quality Flash Video output. General availability of Flash Player 8 will be announced this fall, and On2 expects to begin to make its Flix for Flash Player 8 products available shortly thereafter. The incentive price for the new version of Flix Pro is $229, which represents a

$20 discount off the expected $249 retail price of Flix Pro for Flash 8 Player.

About On2 Technologies, Inc., The Duck Corporation