Video encoding

On2 to demonstrate the latest High Definition hardware and software video coding technologies for the handset

Tarrytown, NY (28th January, 2008) – On2 Technologies, Inc. (Amex: ONT), a leader in video compression solutions, today unveiled plans for Mobile World Congress being held in Barcelona, February 11 – 14 2008. Following its recent acquisition of Hantro Products Oy, a leading mobile video company, , On2 will present a complete portfolio of video technologies that enhance the web video experience and bring it to the palm of your hand.

Consistently at the forefront of web video technologies, On2’s TrueMotion® codecs deliver Internet based video content through applications and services provided by companies such as: Adobe, Skype, AOL and Move Networks, amongst others. With wireless Internet access becoming faster and more affordable than ever before, mobile consumers now have unfettered access to this content. As consumers increasingly expect a High Definition experience, On2 is uniquely positioned to offer the technologies for unprecedented mobile video experiences.

Mobile users can now greet incoming callers with high fidelity music and audio instead of the common tones in use today

Coding Technologies, a provider of audio compression for mobile, digital broadcasting and the Internet, and SK Telecom, a mobile service provider in Korea, have successfully incorporated Coding Technologies’ aacPlus audio codec into SK Telecom’s Premium Color Ring Back Tone service (PCRBT) launched on March 13. The new aacPlus audio codec greatly improves the audio quality compared to the former service. The launch of SK Telecom’s PCRBT service constitutes a commercial proof of concept and is expected to impact the adoption of similar services in other countries. The first phone models supporting the new service are already available from vendors such as Motorola and Pantech.

Color Ring Back Tones allow mobile phone users to personalize their mobile phone service by selecting songs that callers hear when calling the user’s phone. Color Ring Back Tones are a much sought-after life-style accessory in the huge Asian markets with more than 12 million active users in South Korea.

Broadcom Corporation announced that a federal district court adopted a unanimous jury finding that Qualcomm Incorporated violated its duty to disclose patents to an industry standards body and thereby waived its rights to enforce two patents Qualcomm alleged covered the H.264 video compression standard.

Qualcomm filed suit against Broadcom in San Diego federal court in October 2005 alleging that Broadcom® products infringed the two patents, and on January 26, 2007, a unanimous jury found that Broadcom did not infringe the patents. The jury also rendered advisory verdicts that Qualcomm committed inequitable conduct before the USPTO, and that Qualcomm knowingly violated a duty to disclose its patents to the Joint Video Team, or its parent organization, during the JVT's preparation and eventual adoption of the H.264 video compression standard.

In a 34 page opinion, the Court found:

* "Qualcomm waived its rights to enforce the '104 and '767 patents against H.264 products by its silence in the face of a "clear duty to speak" to identify to the JVT its IPR related to the development of the H.264 standard"