5 August 2004 -- On2 Technologies and PowerLinx Launch Strategic Alliance for Surveillance, Security and Video-on-Demand Markets

Products Will Use PowerLinx's Patented Powerline Technology And On's2 VP6 Codec and TrueCast Server Software
TIERRA VERDE, Fla. and NEW YORK, Aug. 5 /PRNewswire-FirstCall/ -- On2 Technologies, Inc., The Duck Corporation (Amex: ONT) and PowerLinx (BB:PWLX), Inc. today launched several strategic initiatives aimed at the surveillance, security, and video-on-demand (VOD) markets. All of these products will use PowerLinx's patented technology for sending audio and video over power lines, twisted pair wires, and coaxial cable in AC and DC environments on any power grid. This technology will be paired with On2's revolutionary VP6 codec and TrueCast software.

The VOD offering will enable set-top boxes in hotels and multiple dwelling units that are equipped with PowerLinx transceivers to stream VP6 video from remote TrueCast Servers. This will permit customers to set up VOD without rewiring buildings for dedicated Ethernet connectivity. Rewiring costs are often the largest capital expense for setting up such entertainment systems in large buildings.

For the commercial surveillance and security markets, On2's VP6 codec will be used to compress, store, and serve video from PowerLinx Digital security cameras. PowerLinx technology will allow the compressed video to be sent, via the power lines, to a PC for viewing and recording. This product will be aimed at the OEM security market.

The companies will also offer a security solution aimed at residential customers with a new product, PLVS Plus System(TM), that combines a single base station with any combination of monochrome SecureView cameras. This product will be marketed through large retailers. In addition to the residential home monitoring product a more robust system has been designed to fill the security needs of the small business. This product will be sold and distributed through security solutions providers and integrators. On2's VP6 codec will process video from the base for secure remote PC viewing over the internet in both applications.

In all three products, the use of On2's VP6 codec in combination with low- cost digital signal processor (DSP) and the Linux operating system will allow the system to offer more capacity and better video quality at lower cost than competing solutions.

"There are a number of markets where high-quality compression is needed for sending video over IP, but the costs of the connections are extremely expensive. The joint On2/PowerLinx initiatives sharply reduce these costs and capital expenditures," said Douglas A. McIntyre, Chairman, President and Chief Executive Officer of On2.

George S. Bernardich III, PowerLinx Chairman & CEO stated, "These initiatives further define our use of the On2 VP6 codec in our PowerLinx products. Both the cameras and home monitoring systems will be some of the first such products available to the surveillance and security markets at any distribution level."