DTS and Coding Technologies Bring High-Quality, Low-Bit-Rate MPEG-4 aacPlus Multichannel Audio to Digital TV and Radio Services.

AMSTERDAM -- New Solution Saves Broadcasters Transmission Costs by Enabling aacPlus Multichannel Audio Compatible to All Existing DTS-Compatible Home Audio and Home Theater Systems

Coding Technologies and DTS announced today a new joint solution which will allow satellite, terrestrial, cable, and IPTV digital broadcasters to transmit Coding Technologies' MPEG-4 aacPlus(TM) audio for playback on any DTS-compatible receiver. The solution is an aacPlus multichannel decoder from Coding Technologies combined with a DTS encoder which outputs digital audio directly in the DTS format, both residing in the consumer set top box. By switching to the aacPlus format for their transmissions, broadcasters can save enough cumulative bandwidth to add extra video channels or multi-lingual and Secondary Audio Programming to their existing channels.

DTS is working with Coding Technologies as an extension to the company's position within the DVB specification. DTS, widely recognized as the industry leader in high-quality surround sound, with data rates up to 1.5 Mbps in its installed base of decoders, continues to offer alternate technologies to broadcasters. With more than 50 million DTS-enabled decoders already in homes, the new solution allows digital broadcasters switching to aacPlus to have an instant audience. Coding Technologies and DTS will be working together with chip set and set top box manufacturers to update their solutions to include this new functionality.

Independent testing by MPEG, 3GPP, the European Broadcasting Union, and the Institut fur Rundfunktechnik have shown that aacPlus is the most efficient audio codec available today. Specifically for 5.1 multichannel, testing has shown that 160 kbps aacPlus provides the same audio quality of 384 kbps from its competitors.

"The combination of aacPlus and DTS audio coding introduces the possibility for broadcasters to create new content offerings for consumers by considerable savings in transmission bandwidth," said Stefan Meltzer, Vice President of Business Development at Coding Technologies. "By broadcasting in high-efficient aacPlus to millions of high-quality DTS-enabled receivers, broadcasters will profit from lower transmission costs without the need for new equipment on consumers side."

"DTS is synonymous with quality amongst consumers and content owners worldwide," said Brian Towne, Senior Vice President consumer/pro division at DTS, Inc. "Through our cooperation with Coding Technologies, DTS is once again showing its commitment to facilitate a range of high quality solutions for content providers, network owners and consumers. DTS believes choice and competition is critical to market development, and looks forward to both cooperating with Coding Technologies on this initiative, as well as proactively pursuing DTS' new low-bandwidth technology broadcast solution."

About Coding Technologies' MPEG aacPlus:

aacPlus is AAC coupled with Coding Technologies' patented Spectral Band Replication (SBR) and Parametric Stereo technologies. SBR and Parametric Stereo are groundbreaking audio compression techniques that dramatically reduce the size (bit rate) of digital audio files while maintaining the same audio quality. In third-party listening tests, consumers found comparable quality between music files encoded at 128 kbps in MP3 versus those encoded at 32 kbps with aacPlus. This level of efficiency fundamentally changes the economics of digital music delivery and enables new applications in mobile and digital broadcasting. Coding Technologies' aacPlus has been adopted in standards from 3GPP, DVB, DVD Forum, MPEG, and others and is quickly becoming the defacto-standard for mobile handsets worldwide.

aacPlus delivers streaming and downloadable 5.1 multichannel audio at 128 kbps, near transparent stereo at 32 kbps, excellent quality stereo at 24 kbps, and great quality for mixed content down to 16 kbps and below.

Coding Technologies

Coding Technologies provides the best audio compression for mobile, broadcasting, and Internet. SBR(TM) (Spectral Band Replication) from Coding Technologies is a backward and forward compatible method to enhance the efficiency of any audio codec; putting the "PRO" in mp3PRO and the "Plus" in aacPlus. Parametric Stereo from Coding Technologies and Philips again significantly increases the efficiency of audio codecs for stereo signals at low bit rates. Products from Coding Technologies are fundamental enablers of open standards such as MPEG, Digital Radio Mondiale, HD Radio, and the DVD Forum.

Coding Technologies is a privately held company with offices in Sweden, Germany, and Silicon Valley. Founded in 1997 in Stockholm, the company later merged with a spin-off of the renowned Fraunhofer Institute in Germany, the inventor of MP3. Coding Technologies' customers include America Online, iBiquity Digital, mmO2, Nokia, RealNetworks, SK Telecom, Thomson, Texas Instruments, Vodafone, and XM Satellite Radio.

For more information, visit www.codingtechnologies.com.

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 processors, and there are more than 300 million 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 24,000 motion picture screens worldwide. Additionally, DTS provides imaging technology and services for the motion picture industry; Lowry Digital Images, a wholly-owned subsidiary of DTS, is 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.

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.