Cinea Launches First Forensic Watermarking Application for Use With Broad Range of Consumer Video Devices; Patented Running Marks Allows Tracking of Pirated Content to Devices Ranging From Set-Tops to Portable Video Devices to Mobile Phones.

RESTON, Va. -- Cinea, Inc., a subsidiary of Dolby Laboratories, Inc. (NYSE:DLB), today announced the launch of an expanded video forensic watermarking technology, which for the first time enables device-specific content tracking on a wide range of consumer video devices.

Running Marks(R) for consumer devices builds upon Cinea(R) patents and intellectual property that enable the labeling and tracking of video content played back on most consumer video devices, including legacy set-top boxes, portable media players, personal computers, and mobile phones. Running Marks also supports cost-effective, high-output, session-specific watermarking in a head-end device such as a "download and burn" server.

The company's forensic watermarking technology was first successfully deployed several years ago as part of the S-View(TM) suite of content protection for the professional studio environment. It has since been enhanced with additional features specifically designed to accommodate consumer electronics, and will be marketed as a stand-alone and licensable technology.

Cinea's Running Marks architecture employs a variety of features that make its forensic watermarking application ideal to meet the uniquely rigorous and stringent requirements of the consumer electronics environment. Product features include:

--An ultralight inserter that enables forensic watermarks to be embedded in nearly any modern consumer video device, ranging from set-top boxes to portable video products to mobile phones. This powerful capability is made possible by patented technology that simplifies the traditionally complex watermark insertion process, separating the determination of where to place marks from the task of inserting them.

--A replacement-based architecture that provides for security algorithms to be renewed on the back end, with no need for field upgrades, affording tremendous cost savings when millions of devices have already been deployed.

--Fully blind recovery supports extraction of the watermark from a pirated copy without reference to the original source.

--Multiple insertion capabilities allow watermarks to be embedded across the distribution and playback chain, helping content owners identify sources of leakage or points of vulnerability.

--Compressed domain security provides an additional level of security by allowing the technology to reside within the secure envelope of digital rights management or conditional access (DRM/CA) providers.

"This is an enormous step for the protection of copyright and revenue streams in the new convergence environment," said Rob Schumann, General Manager, Cinea. "Until now, watermarking was a desirable -- but impractical -- security tool for the consumer environment. With Running Marks, content owners and system operators can trace leaks back to specific devices, providing a strong deterrent to unauthorized distribution."

Earlier this year, Widevine Technologies, Inc., the leading provider of content security solutions for IP video operators worldwide, announced that it would be the first official licensee of Cinea's new technology. The company plans to deploy Running Marks technology to all 1.5 million users of its current installed base of IPTV set-top boxes later this year.

"We are pleased to work with Cinea to offer a superior forensic watermarking solution," said Glenn Morten, Chief Technology Officer, Widevine Technologies. "Running Marks meets our low-footprint requirements and seamlessly integrates with the Widevine Mensor(TM) forensic watermarking solution, enabling it to track and deter pirates across a broad range of Widevine Secure devices."

Cinea Running Marks consists of three components that are licensed to DRM/CA providers: a preprocessor that can be integrated with any encryption system, an ultralight inserter that can be integrated with a broad range of existing and planned playback devices, and a recovery station that locates the message from unauthorized content, with no reference back to the original source.

Cinea will be demonstrating its product in private meetings at IBC2006 in Amsterdam next month, September 8-12, located in Room J, upstairs from Hall 2. Widevine will be demonstrating Widevine Mensor(TM) digital forensic solution which incorporates Running Marks at its IBC2006 Booth # 4.151.

About Cinea

Cinea, Inc., a Dolby company, develops and commercializes a broad variety of content-protection solutions for the motion picture and television industries. Current customers include many of the major film studios as well as leading service vendors in the entertainment industry. For more information about Cinea, Inc., or Cinea technologies, please visit www.cinea.com.

Certain statements in this press release -- including statements regarding the performance, features, reliability and capabilities of Cinea's Running Marks forensic watermark technology; the compatibility of Cinea's Running Marks forensic watermark technology with most consumer video devices; the potential benefits that studios and other customers may derive from Cinea's Running Marks forensic watermark technology; Cinea's plans regarding the rollout of its Running Marks forensic watermark technology to Widevine Technologies; the anticipated market acceptance of Cinea's Running Marks forensic watermark technology; and Cinea's ability to successfully develop antipiracy protection solutions that improve or enhance protection of entertainment intellectual property -- are "forward-looking statements" that are subject to risks and uncertainties. These risks and uncertainties, which could cause the forward-looking statements to differ materially from anticipated results, include, without limitation, risks that the adoption by studios of Cinea's watermark technology may not occur as currently anticipated; risks that Cinea's watermark technology may not perform as anticipated; risks associated with building market acceptance of and demand for Cinea's watermark technology; competition risks for watermark technology; rapid changes in technical requirements for antipiracy protection; and other risks detailed in Dolby's Security and Exchange Commission filings and reports, including its quarterly report on Form 10-Q, filed with the SEC for the quarter ended June 30, 2006. Dolby and Cinea disclaim any obligation to update information contained in these forward-looking statements, whether as a result of new information, future events, or otherwise.

Dolby and the double-D symbol are registered trademarks of Dolby Laboratories. Cinea and Running Marks are registered trademarks of Cinea, Inc. S-View is a trademark of Cinea, Inc. Mensor is a trademark of Widevine Technologies, Inc. S06/17460