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Las Vegas - CES 2008 (January 7, 2008) - Broadcast International and On2 Technologies, leaders in video compression technology and solutions today announced an agreement to make real-time, high quality video, including high-definition (HD) video, accessible anywhere to capable network-connected devices. Under the agreement, Broadcast International will integrate On2?s market-leading TrueMotion® codecs with its breakthrough CodecSys multi-codec video compression software. This integration will allow content available in standard formats to be encoded in real-time for delivery to a broad range of devices in resolutions up to 40% greater than previously possible. As a result, content can be repurposed for IP delivery to a wider consumer base in the burgeoning IP video market. Consumers will be able to receive full screen, full motion video, including up to HD video delivery to their compatible computers, laptops, cell phones, and other video devices in On2's TrueMotion® VP6 and VP7 formats. On2's TrueMotion formats are supported by the majority of web video, social networking and user generated content sites, and leading web video conferencing and instant messaging services exceeding a total of 1 billion deployments worldwide. "The days of small-screen, jerky, fuzzy video over the Internet are numbered," said Rod Tiede, CEO of Broadcast International. "Our agreement with On2 will make watching video on your computer the same quality experience as on your home theater system. And if you're not at a computer, you can watch it seamlessly on your PDA or phone. It's a real breakthrough for consumers, everywhere." Through a prior agreement with IBM, The CodecSys software will be powered by IBM's Cell Broadband Engine (Cell/B.E.), which incorporates the same powerful, multi-core IBM processor used in the Sony Playstation. The IBM/CodecSys video encoder will enable HD quality video to be encoded and delivered within bandwidths previously supporting considerably lower-quality video, resulting in high quality video being made available to a broader market. Simultaneously, On2 has announced video initiatives with a new VP6-S profile of its popular VP6 codec for HD video at extremely low bandwidths and low processor power requirements, and a new profile of VP7 for HD video, similarly capable of HD video at very low bandwidths. CodeSys will enable content providers and distributors to use a single encoder to deliver video to any device, no matter how it?s transmitted ? over broadcast, cable, Internet, or mobile networks. Traditional encoding solutions require single- purpose encoders for each type of transmission, increasing the cost and operational complexity required to maintain ubiquitous support for multiple codecs and delivery networks. By supporting On2's video codecs, CodecSys will allow any video to be sent to any device that supports On2's codecs, which includes Adobe® Flash® Player available on more than 90 percent of PCs worldwide, and will be available on Adobe® Flash® Lite 3 (FL3) devices in 2008. "The combination of On2 TrueMotion and CodecSys solve the problem of quality and accessibility in one elegant solution," said Bill Joll, president and CEO of On2 Technologies. With On2's more than 1 billion deployments and CodecSys functionality that allows high quality content to be easily repurposed for any delivery mode, content and service providers will have an easy and affordable way to reach the widest possible audience for IP delivered HD video, whether that be over wired or wireless networks. BI and On2 executives will be at CES 2008, January 7-10 in Las Vegas, for briefings regarding this announcement at the IBM booth (#36664) and On2 booth (LVCC booth # 11808), and at the Pepcom event on January 6, 2008. Video Placeshifting Has Arrived The powerful combination of BI?s CodecSys software running on IBM?s Cell/BE engine -- coupled with On2 Technologies? ubiquitous presence on virtually every computer and device -- will enable a trend called placeshifting. Placeshifting is the ability to watch video content anywhere from any video capable device including computers, cell phones and PDAs. "Applications such as placeshifting, and mobile social networking are shaping the future of video," said Rod Tiede, president and CEO of Broadcast International. "The problem has been available bandwidth, on the one hand, and the inability to deliver content across multiple delivery networks to an end-user. Now, both of those problems are solved. And end-users who want to watch their favorite video content from wherever they happen to be will be the big beneficiaries." Broadcast International/IBM License Agreement In December 2007, Broadcast International announced an agreement with IBM to bundle its CodecSys software with IBM?s BladeCenter QS21 server to create a video encoder product targeted at digital content producers and distributors. This encoder will make it possible to deliver live HDTV at bandwidth levels four to six times lower than is currently possible. For example, HD video could be delivered at 3 Mbps instead of 19.4 Mbps. "This combination of IBM?s incredibly powerful Cell chip and BI's completely new approach to encoding, using multiple expert codecs in parallel, will change the entire economics of the video industry overnight," said Peter White, CEO of Rethink Research Associates in the U.K., and contributing analyst for Multimedia Research Group. Patented CodecSys technology, now with On2 codecs Broadcast International has patented the unique CodecSys approach of using multiple expert codecs rather than single, general-purpose codecs. By automatically switching between specialized codecs, choosing the best one for a particular frame or video sequence, CodecSys is able to reduce video bandwidth requirements more than 80% for HD video over all types of delivery platforms including broadcast, cable, IPTV, wireless and the Internet. The On2 Technologies' codecs will be added to the CodecSys codec line-up, enabling a wider range of video to be delivered to consumers on the platforms that users have already chosen, including 90% of desktop computers worldwide. The IBM Cell/B.E. processor accelerates the CodecSys codec-switching process, providing a platform for nearly unlimited processing power and video compression capabilities. BI's software is based on an open software architecture that can accommodate new standards, such as H.264, as well as new specialized codecs as they come onto the market. The IBM Cell/B.E. processor hardware platform is also highly programmable and scalable, enabling customers to add additional processing power by simply adding extra processors or 'blades.' IBM and BI have been involved in a co-development effort since April 2007, to integrate the Cell/B.E. processor with CodecSys software. Broadcast International and IBM demonstrated the solution publicly for the first time at IBC in Amsterdam in September 2007. The key building blocks of the encoding solution, the multiple codecs running on Cell/B.E. -- now including the On2 Technologies' codecs -- will be made available through licensing to IBM business partners such as OEM equipment manufacturers to integrate with their traditional encoding solutions and improve their flexibility beyond traditional digital signal processors. About Broadcast International Broadcast International is a leading provider of video-powered broadcast solutions, including IP, and digital satellite, Internet streaming and other types of wired/wireless network distribution. BI?s patented CodecSys software is a breakthrough, artificial intelligence-based video compression technology that cuts video bandwidth requirements more than 80% over satellite, cable, IP and wireless networks. By slashing bandwidth needs, CodecSys enables a new generation of applications such as streaming video to cell phones, and offers unprecedented price/ performance benefits for existing applications such as HD video. Broadcast International is a public company (OTC BB: BCST) headquartered in Salt Lake City UT. For more information go to www.brin.com and www.codecsys.com. About On2 Technologies On2 Technologies (AMEX: ONT) ensures a compelling video experience for any video application anywhere. From low bit rate to high definition, On2 provides optimized video compression technology enabling innovative solutions for application developers, content and service providers, chip vendors, device manufacturers, digital signage companies and beyond. Through continual innovation, On2 satisfies the toughest quality, bandwidth, and power requirements for video. The company's proprietary (TrueMotion® VP6, VP7) and standards based (MPEG-2, MPEG-4, H.263, H.264, VC-1) codecs dominate the video market, with more than 1 billion deployments on desktops worldwide and more than 200+ million in mobile; they are also proven in silicon with over 25 semiconductor manufacturers globally. Established in 1992 and headquartered in Tarrytown, New York, On2 has offices and partners in Finland, Germany, UK, Japan, China, Taiwan and Korea. Customers include Nokia, Samsung, Sony, Freescale, AMS, Atmel, Adobe/Macromedia, AOL, Sony, Skype, Facebook, VideoEgg, Brightcove, Move Networks and XM Satellite Radio. For more information please visit www.on2.com.
ON2 TECHNOLOGIES
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