DTS Teams up With DCL for Digital Cinema Upgrade in Ireland.

TWYFORD, United Kingdom -- DTS, Inc. (NASDAQ: DTSI) DTS has announced that it has reached agreement with DCL to upgrade the first phase of DCL's Irish D-Cinema installation. The agreement provides for both parties to work together to facilitate the wider rollout of Digital Cinema in Ireland.

Under the agreement, DTS will upgrade DCL's existing network to ensure compliance with the latest studio requirements for release of D-Cinema movie content. This will require meeting the JPEG2000 file format compatibility and security features defined in the DCI standard specification. DTS will also bring additional functionality to the network by introducing its management software toolset. This suite of tools is designed to make distribution and playback of D-Cinema movie content a simple and reliable process for both the studios and exhibitors.

"We are very pleased and excited to be working with DTS in the upgrade of our current system," comments Ian Kirby, MD of DCL. "This critical upgrade brings us to a level of compliance with the DCI specifications that is essential for the receipt and playback of D-Cinema movie content today, and puts us firmly on track to maintain the compliance levels we will need going forward."

The agreement also calls for DTS to work together with DCL to manage the upgrade, expansion and operation of the network. DTS will work with DCL and local film distributors to acquire, prepare and deliver content to the screens.

The announcement reflects DTS' recent moves to develop its business as a specialist provider of solutions for digital cinema by separating its business into two autonomous divisions. Tony Nowak, MD of DTS' European cinema business, continues: "Under this change of strategic direction for the company, we are developing our flexible solutions to meet the needs of content owners and exhibitors in the transition to Digital Cinema. We are very happy that DCL have chosen to work with us on this upgrade, and we plan together to roll out the full 500-screen network in the coming months."

These new strategic objectives for DTS build upon the current business. Nowak says: "Of course, we will continue to support the needs of our existing DTS Digital Sound[TM] audio coding business as part of our strategic plan. We have demonstrated our commitment to the movie business over the years, and we plan to be there to support content owners and exhibitors as a part of its future."

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.

About Digital Cinema Ltd (DCL):

DCL is an Irish company which aims to provide the world's first countrywide digital movie and advertising distribution network. DCL is supported by a team of highly qualified technicians based in Thurles, Co. Tipperary. DCL won the 2005 BT Inspired IT 2005 Overall SME Award for its pioneering of a digital cinema network in Ireland. DCL works in collaboration with major Hollywood and European distribution companies and Irish cinema owners to deliver new digital movie releases to the cinema going public all over Ireland. For more information on DCL, visit http://www.digitalcinema.ie

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 does not intend to update any forward-looking statement to reflect events or circumstances arising after the date on which it was made.