DTS Launches Cinema Media Network(TM); High Quality Pre-Show Network System Offers New Opportunities for Exhibitors.

AGOURA HILLS, Calif. -- DTS, Inc. (NASDAQ: DTSI), the leading digital entertainment company, expanding its Cinema Division portfolio of products and services, announces the DTS Cinema Media Network(TM), a high-quality automated E-Cinema network system for the delivery of high-definition video content with DTS digital surround sound.

Providing major cost savings and increased revenue opportunities to theaters, the Cinema Media Network enables the automated scheduling, delivery and screening of pre-show, advertising and alternative content for digital presentation.

At the heart of the Cinema Media Network is the DTS XD10 Cinema Media Player, a single platform solution that provides high definition video and DTS digital surround sound presentation of E-Cinema content, DTS digital soundtracks for feature programs, as well as DTS-CSS subtitles, captions and audio description services. The Cinema Media Player is easy to install, and integrates readily within the existing operations. Each theater site requires a single DTS Cinema Server, and each screen a XD10 Cinema Media Player. Exhibitors already operating the XD10 for feature soundtrack presentations require only a low cost upgrade to enable its operation within the Cinema Media Network.

The DTS Cinema Media Network offers significant savings in the costs of pre-show and cinema advertising, without the need to print and distribute 35 mm film, and with the flexibility and workflow efficiencies associated with its high degree of automation. It also enables a degree of flexibility in advertising sales comparable with television, with far shorter turnaround times from client to screen, and the ability to offer all forms of short-term scheduling, based, for example, on audience demographics or feature genre. The system also offers cinema owners new revenue opportunities, with the ability to create and exhibit advertising for local businesses alongside regional and national campaigns. Another new potential revenue stream is the ability to screen alternative content including art house, special interest and foreign cinema, as well as major sports and entertainment events in high definition video with DTS digital surround sound.

"The theatre experience is changing and evolving," said Don Bird, Senior Vice President, Cinema Division at DTS. "New digital technologies will better enable exhibitors to thrive in an increasingly competitive entertainment marketplace. The Cinema Media Network is an outgrowth of our continued commitment to delivering the highest quality products and technologies to exhibitors. At a time when exhibitors are faced with significant financial and technological challenges, we're excited about the ability to deliver such a cost-effective advanced solution."

About DTS Cinema Division

DTS, a leading digital sound company, is now a leading digital entertainment company, with emergent capabilities and resources to integrate and support a fully digital experience for high-quality cinema presentation.

DTS' expanded range of products and services are founded upon our proven expertise in the creation and delivery of digital media for cinema, and have been developed to meet the opportunities and challenges of the industry transition to a digital entertainment platform. Our content creation and delivery tools for D-Cinema and E-Cinema, and media network systems offer new standards of quality and ease of operation. These tools and systems are designed to define and support new opportunities for increased revenues and efficiencies for content providers and exhibitors.

Alongside the existing advantages of DTS' single print solution for cinema sound, we provide an extended portfolio of products and services that allow flexibility and easy implementation of the latest delivery, scheduling and presentation solutions for pre-show, advertising and alternative content.

DTS continues its relentless commitment to partnering with exhibitors in providing value-added products and support in the transition from film to a fully digital entertainment experience.

About DTS

DTS, Inc. (NASDAQ: DTSI) is a digital technology company dedicated to delivering the ultimate entertainment experience. DTS decoders are in virtually every major brand of 5.1-channel surround processor, and there are hundreds of millions of DTS-licensed consumer electronics products available worldwide. A pioneer in multi-channel audio, DTS technology is in home theatre, car audio, PC and game console products, as well as DVD-Video, Surround Music and DVD-ROM software. DTS audio products are featured on more than 27,000 motion picture screens worldwide. Additionally, DTS provides imaging technology and services for the motion picture industry; DTS Digital Images, formerly Lowry Digital Images, is a wholly-owned subsidiary of DTS and an industry leader in image restoration and enhancement. Founded in 1993, DTS is headquartered in Agoura Hills, California and has offices in the United Kingdom, France, Italy, Canada, Hong Kong, Japan and China. For further information, please visit www.dts.com.

DTS is a registered trademark of DTS, Inc.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks, uncertainties, assumptions and other factors which, if they do not materialize or prove correct, could cause DTS' results to differ materially from historical results or those expressed or implied by such forward-looking statements. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including statements containing the words "planned," "expects," "believes," "strategy," "opportunity," "anticipates" and similar words. These statements may include, among others, plans, strategies and objectives of management for future operations; any statements regarding proposed new products, services or developments; any statements regarding future economic conditions or financial or operating performance; statements of belief and any statements of assumptions underlying any of the foregoing. The potential risks and uncertainties that could cause actual growth and results to differ materially include, but are not limited to, the rapidly changing and competitive nature of the digital audio, consumer electronics and entertainment markets, the company's inclusion in or exclusion from governmental and industry standards, customer acceptance of the company's technology, products, services and pricing, risks related to ownership and enforcement of intellectual property, the continued release and availability of entertainment content containing DTS audio soundtracks, changes in domestic and international market and political conditions, risks related to integrating acquisitions and other risks and uncertainties more fully described in DTS' public filings with the Securities and Exchange Commission, available at www.sec.gov. DTS assumes no obligation to update any forward-looking statement to reflect events or circumstances arising after the date on which it was made.