DTS-HD Master Audio(TM) Selected for the First European HD DVD Release; HD DVD of 2046 Presented to Jury at Cannes Film Festival 2006.

TWYFORD, U.K. -- DTS, Inc. (NASDAQ:DTSI) announces that the first European-produced HD DVD will feature DTS-HD Master Audio as the exclusive lossless sound format on the disc. The release, 2046, was presented at the 2006 Cannes Film Festival to the President of the Feature Films Jury. Laurent Villaume, CEO of QOL who replicated the disc, presented the new title to Wong Kar Wai, the director of 2046. Set in a futuristic Hong Kong, the romance stars Tony Leung (Hero) and ZiYi Zhang (Memoirs Of A Geisha).

The audio for the 2046 HD DVD was encoded in DTS-HD Master Audio, which is DTS' newest surround sound technology extension for HD DVD and Blu-ray Disc. DTS-HD Master Audio delivers sound that is bit-for-bit identical to the master soundtrack for the next generation optical disc formats, whilst being fully backward compatible with all existing DTS-capable surround sound equipment.

Gerben Van Duyl, Director of Business Development for Consumer Content for DTS Europe, commented: "Today was a very exciting day here in Cannes, and the fact that Ocean Films has chosen DTS-HD Master Audio for its first HD-DVD attests to their support of our new format. Soon consumers around the world will be able to enjoy more movies like 2046 in high definition video and high definition DTS audio."

DTS-HD Master Audio is an option in the standards for the new Blu-ray Disc and HD DVD next generation media formats. In addition to delivering audio so pure and accurate it is identical to the master soundtrack and having 7.1-channel discrete sound capability, DTS-HD Master Audio is also compatible with existing generation equipment, and can deliver a significant increase in sound quality when consumers play the next generation discs and players through their current A/V equipment. DTS-HD Master Audio is an extension of Coherent Acoustics, which is the digital codec upon which all of DTS' audio technologies in the consumer electronics space are based, and was designed to be highly flexible in anticipation of future requirements and applications.

About QOL

QOL (Quantum Optical Laboratories) is France's foremost exclusive DVD pressing company.

As the French leader, it currently boasts:

--135 workers

--EUR 20m of investments

--A capacity of over 200,000 DVDs per day, 24/7

--A blue-chip shareholder: Natexis

--Member of SEV 

--More than EUR 6m will be invested in HD media

--An HD-DVD capacity of 2m/month

QOL works with all major publishers in the French media industry (TF1, CANAL, M6, FOX, Europa Corp, Warner, Universal, etc.) and handles over 8,000 titles. Recent examples include Les Bronzes 3, Mr. and Mrs. Smith, and Million Dollar Baby.

QOL has been involved with High-Definition from the start and on 24th March Laurent Villaume, its Chairman, gave a presentation at the Prince-de-Galles in Paris to a gathering of the entire profession detailing the significant investments his company was making in both HD DVD and Blu-ray.

As evidence of his determination (and given that the first HD DVD units are not expected in Europe until Autumn), Laurent Villaume assembled an assortment of Europe-wide resources to press the first HD DVD disc. It happened to be a recording of the film 2046 by Wong Kar Wai, Chairman of the Jury of the Cannes Festival 2006, to whom he presented Copy 001 during the Festival.

About Ocean Films

Today, DVD is the favored medium for making art-house films from around the world available to the general public. This is the ambition of Ocean Films Distribution, which provides cinema distribution of the best of art-house cinema from around the world, and makes it accessible to the widest audience in DVD editions which are particularly rich in bonus features. Working with the most talented contemporary directors, from Wong Kar Wai to Wim Wenders, but also "discovering" often-underrated directors ranging from beginners such as Andrei Zviaguintsev to the veteran Lester James Peries. Producing works by great Asian directors such as Hou Hsiao Hsien, Takeshi Kitano, Jian Wen and Johnnie To, but also supporting the rebirth of Italian cinema with films from Marco Bellocchio and Ettore Scola and the saga La Meglio Gioventu. Presenting subjects which are both popular and original, from Goodbye Lenin! to Historias Minimas, from Fish And Chips to Samsara, from C.R.A.Z.Y. to Basic Instinct 2, but also embracing all aesthetic forms, from the animation of My Neighbors the Yamadas to the dogma of Mifune. Casting an eye over the modern world, from The Syrian Bride to La Petite Jerusalem, from Hijack Stories to Blind Shaft, etc. In short, sharing a resolutely bold, open vision of the cinema.

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 processors, 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.