DTS and Coding Technologies Launch High Efficiency MPEG-4 Surround Sound Solution for HDTV.

TWYFORD, United Kingdom -- MPEG-4 aacPlus / DTS Audio Transcoding System Proves Major Bandwidth Efficiency Can Be Achieved with Improvements in Perceived Audio Quality for 5.1 Discrete Multi-Channel Sound

DTS, Inc. (NASDAQ:DTSI) and Coding Technologies will stage the European launch of their 5.1 multi-channel audio transcoding system for HD broadcasting at IBC (RAI Amsterdam, 8-12 September 2006), with both companies demonstrating the unique advances of the system, in terms of bandwidth efficiency and perceived audio quality, at the DVB pavilion (Stand 1.481).

The DTS / Coding Technologies transcoding scheme is the product of a major strategic development initiative between the two companies, and integrates the unparalleled efficiencies of Coding Technologies' MPEG-4 HE-AAC (aka aacPlus) development -- an integral part of the MPEG open standard -- with the high quality, transparent decoding of DTS' Coherent Acoustics algorithm, running at 1.5 Mbps. aacPlus has proven its superior audio quality in many third party tests conducted by independent organisations, including the EBU (European Broadcast Union), MPEG (Moving Pictures Expert Group), and IRT (Institut fur Rundfunktechnik). Specifically for 5.1 surround sound, 160 kbps aacPlus provides the same audio quality as 384 kbps transmissions of competing formats currently employed within ATSC and DVB architectures.

This gain in efficiency frees up significant amounts of transmission bandwidth, allowing broadcasters to enhance their transmissions with secondary audio channels (such as multi-lingual versions) or to significantly reduce transmission costs. When employed throughout the programme multiplexes, these efficiency savings have a dramatic impact -- enabling the transmission of entire new video channels over the network bandwidth.

The DTS/Coding Technologies system offers a competitive, high quality end-to-end audio solution for digital broadcasting, incorporating the full application chain from contribution, through distribution to emission; broadcasters adopting aacPlus have immediate access to a consumer install base of over 50 million DTS-enabled systems worldwide. The complete range of products, from broadcast-grade multi-channel encoders, to transcoding chips for consumer set-top-boxes supporting SD and HD resolutions, will be available this year.

Commenting for DTS, Ted Laverty, Director of Global Broadcast Licensing, stated: "For broadcasters, this really does offer the best of all worlds: optimal transmission bandwidth usage, highest quality multi-channel surround sound, and complete compatibility with all DTS-enabled domestic receivers. Crucially for broadcasters, the business model is simple, with no introduction periods where revenues are restricted. From day one, broadcasters have access to a multi-million global viewing audience through DTS-enabled home theatre receivers."

For Coding Technologies, Stefan Meltzer, Vice President of Business Development, commented: "HDTV has a bright future in Europe, with many new services being introduced throughout the region. For any broadcaster actively considering its HDTV business, our joint demonstration is a 'must see' or rather 'must hear.' This technology offers HDTV broadcasters revolutionary increases in efficiency. Furthermore, the technology is tried and tested, and millions of home theatre owners can enjoy the end product immediately at no extra cost."

Throughout IBC, DTS and Coding Technologies will be demonstrating the quality of the transcoded aacPlus / DTS surround sound signal in conjunction with the DVB, featuring HD video material from BT's "This Binary Universe," the latest release on the DTS Entertainment music label.

About 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 3GPP, 3GPP2, MPEG, DVB, Digital Radio Mondiale, HD Radio, and the DVD Forum.

Coding Technologies is a privately held company with offices in Sweden, Germany, China, and the USA. 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, EMP, iBiquity Digital, KDDI, O2, Nokia, Orange, RealNetworks, SK Telecom, Sprint, T-Mobile, Thomson, Texas Instruments, Vodafone, and XM Satellite Radio.

For more information, visit www.codingtechnologies.com.

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.

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.