XM Satellite Radio Selects On2 TrueMotion VP6 new york, ny (January 5, 2005) - On2 Technologies, Inc. (Amex: ONT - News) today announced at the 2005 Consumer Electronics Show (CES) that XM Satellite Radio will use its TrueMotion VP6.2 video compression technology in XM's in-vehicle prototype video entertainment system. The new system will be used to transmit video entertainment to satellite receivers in automobiles. The video signal will be used primarily for back- seat entertainment with content that can be either streamed in real time or and cached for later playback. After evaluating codecs from several other vendors, XM selected TrueMotion VP6.2 because of its excellent performance in this kind of environment. In XM's tests, competing video codecs failed to achieve the same results. XM and its automotive equipment partners are demonstrating the satellite entertainment prototype in a new technology showcase vehicle this week at CES in Las Vegas. On2 is also attending CES and giving private demonstrations of their new products in a suite at the MGM Grand hotel. CES attendees who are interested in visiting the On2 suite can call (917)-865-2143 to make an appointment. "As XM continues to expand the possibilities of satellite entertainment technology and content, we have incorporated On2's video technology for its quality in both streaming and cached playback applications," said Stuart Cox, XM's Vice President, Advanced Applications. "The XM deal illustrates once again how TrueMotion excels in diverse applications where quality is the highest priority," said Douglas A. McIntyre, On2's Chairman, President, and CEO. "This opportunity opens up the markets for consumer electronics devices for On2's technology in ways that none of our previous customer relationships have."