NEW YORK, Jan. 4 /PRNewswire-FirstCall/ -- On2 Technologies, Inc. (Amex: ONT) announced today that muvee Technologies, the pioneer and leader in instant personal video, has partnered with On2 to enhance muvee autoProducer with Flash 8 video encoding capability. Under the terms of the agreement, muvee has licensed On2 Flash 8 Video SDK and will pay a per-unit royalty fee for each copy of muvee autoProducer sold. muvee`s autoProducer software is bundled with many industry-popular personal computers, with over 30 million units shipped to consumers per year.

``A growing number of our users are taking advantage of broadband and online video hosting services such as video blogging sites to instantly share their muvees in a whole new way with a wider audience,`` said Terence Swee, muvee`s founder and Chief Opportunities Officer. ``Adding On2`s Flash 8 encoding capabilities to muvee autoProducer now gives our users the added option of making their muvee productions in high quality Flash 8 video, which is great for online streaming.``

muvee`s award-winning autoProducer software is the first in the world to deliver an intelligent, automatic and effective home video production solution that caters to the majority of consumers who often struggle with manual video editing tools. Users simply choose their video and pictures, add their favorite music, pick a muvee style and click `make muvee`. In minutes, autoProducer intelligently analyzes the selected media, then automatically cuts footage highlights to the music, with appropriately-styled effects and transitions synchronized to the beat, creating a professional-looking, finished `muvee`. muvees can be previewed in real time, instantly remade in over 100 different styles, and saved in a variety of popular formats.

``Pioneers like muvee Technologies are accelerating the adoption of powerful, feature-rich consumer video editing applications with capabilities that were once reserved for professional video editors,`` said Douglas A. McIntyre, On2`s chairman, president and chief executive officer. ``With this agreement, On2 and muvee are empowering consumers with the fastest growing, most acclaimed Internet video format to hit the market, Flash 8 video. We`re pleased that On2 is quickly becoming the source for Flash 8 video technology for digital media application producers like muvee.``