If On2 Technologies Inc., (The Duck Corporation) didn't have as much recognition among rock fans, then the compression technology company's deal with Irish band U2 might help change that.

The band's official Website, http://www.u2.com is using On2's VP3 codec for QuickTime in an exclusive video clip portion of the content-heavy site.

The VP3 codec, which was open-sourced in September, helps to stream full-screen, full motion video at data rates sometimes as low as 200 kilobits per second.

On2 officials say feedback from the open-source site has been positive and that the use of the codec on U2's Web site puts the technology into deployment.

The announcement follows a financing arrangement with Crossover Ventures Inc. that provides On2 with between $300,000 and $500,000 in capital during the next 12 months. The companies said On2 would access the capital throughout the year, as needed, through the sale of common stock in a private offering.

The two companies already have an existing financing relationship. The latest deal helps On2 stem its cash flow problems until it can join the profitability club. The company has secured some lucrative deals to provide video compression technology to Real Networks as well as in Asian markets.

The common stock to be sold to Crossover has not been registered under the Securities Act of 1933 and may not be offered or sold in the United States unless exempt from the registration requirements or registered under the Securities Act.

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