Cinea Unveils Next-Generation Forensic Watermarking for Video-on-Demand Systems.

Unprecedented Feature Allows System Operators to Add Session-Based Watermarking at Head-End without Changing Their Infrastructure or Installed Set-Top Boxes 

RESTON, Va. -- Cinea, Inc., a subsidiary of Dolby Laboratories, Inc. (NYSE: DLB) and a provider of content-protection and watermarking technologies and products, announced today the launch of a new and distinctive approach to watermarking video-on-demand (VOD) content that will make the unique serialization of video streams easy and affordable.

The new functionality of Cinea's watermarking technology, Running Marks(TM), allows system operators to add powerful serialization capabilities to their content distribution networks with a simple software upgrade to their network servers.

The watermarking services can be deployed without any additional server power, involves no change in the distribution infrastructure, and--best of all--requires no updates to devices already deployed in the field.

"Widevine Technologies, a leading provider of content security solutions for video operators worldwide, is a key licensee of Cinea's Running Marks technology. Forensic watermarking is on everyone's list of desired features as an additional layer of content protection," said Brian Baker, Widevine's chief executive officer. "Widevine utilizes Cinea technology in its Mensor product-- a proven and scalable carrier grade solution for the implementation of watermarking in a standalone network appliance or in the existing consumer premise equipment. With this approach, Widevine ensures video operators can deploy watermarking cost-effectively and quickly by eliminating integration to third party products."

Forensic watermarking (or media serialization) enables a unique, session-specific ID or serial number to be placed in every video stream sent from a system operator into a home. By watermarking individual streams, the natural flow of distributed content remains untouched and uninterrupted, yet pirated content can be traced back to the source. Forensic marks also provide a proactive "deterrent" value by removing the anonymity usually associated with the downloading and sharing of content.

"Running Marks is designed to make life easier for system operators by providing a seamless layer of security at the head-end server that identifies and targets the illegal redistribution of content," said Robert Schumann, General Manager, Cinea, Inc. "We've essentially taken the benefits of our set-top box solution and moved them upstream."

Today's announcement of seamless support for VOD head-end servers expands upon the company's previously announced support for watermarking on a wide range of consumer video devices, including legacy set-top boxes, portable media players, personal computers, and mobile phones. Collectively, Running Marks provides an uninterrupted layer of security that follows the content path from source to end-user device.

Watermarks are imperceptible to the end consumer yet remain highly robust. Because Running Marks inserts watermarks within the compressed domain, it offers high levels of security and increased implementation flexibility that discourages attempts to be removed or otherwise bypassed.

In addition to the new VOD functionality, Cinea also announced Running Marks support for the H.264 advanced video codec, baseband video, and live broadcast.

"These enhancements help us to provide licensed technologies that meet both the current and future needs of the cable, telco, and satellite video markets," said Richard Whittemore, Product Manager for Running Marks.

During NAB2007, Cinea will demonstrate watermarking for multistream VOD, live broadcast, and H.264 in the Dolby booth, N2513. Implementations of the technology will also be demonstrated at Cinea partner booths.

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. The company's forensic watermarking technology, Running Marks, allows content owners to track pirated content to specific devices, from set-top boxes to PCs to portable video devices to mobile phones. Cinea's executives are well-known authorities on content protection and forensic watermarking. The company is also a founding member of the Digital Watermarking Alliance. For more information about Cinea, Inc. or Cinea([R]) technologies, please visit www.cinea.com.

Certain statements in this press release--including statements regarding the performance, features, reliability, and capabilities of Running Marks and the new serialization capability for content distribution networks; the potential benefits that systems operators and other users may derive from Running Marks and the new serialization capability; Cinea's plans regarding the launch of Running Mark's serialization capability for content distribution networks through software upgrades; and the anticipated market acceptance of Running Marks and the new serialization capability--are "forward-looking statements" that are subject to risks and uncertainties. These forward-looking statements are based on management's current expectations. The following important factors, without limitation, could cause actual results to differ materially from those in the forward-looking statements: risks that adoption of Running Marks and the new serialization capability for content distribution networks may not occur as currently anticipated; risks that Running Marks may not perform as anticipated; risks associated with building market acceptance of and demand for Running Marks; competition risks for watermarking technology; rapid changes in technical requirements for antipiracy protection; and other risks detailed in Dolby's Securities and Exchange Commission filings and reports, including the risks identified under the section captioned "Risk Factors" in its most recent Periodic Report on Form 10-Q or 10-K. Dolby disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.

Cinea is a registered trademark of Cinea, Inc. Running Marks is a trademark of Cinea, Inc. S07/18171