Dolby Announces Digigram as Latest Licensee of AAC Technology; Digigram's Complete Suite of Professional Audio Tools to Feature Premium AAC Codec.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--Feb. 5, 2001

Dolby Laboratories announced that Digigram has licensed Advanced Audio Coding (AAC) and will integrate the premium codec into its complete suite of professional audio tools.

AAC is a high-quality audio compression technology standardized by the International Organization for Standardization (ISO) as part of the MPEG specification. Digigram's network audio platforms, for the professional encoding and management of audio that integrate AAC technology, are projected for Q3 of 2001.

"We think AAC is the heir apparent to MP3 in the next generation of digital audio technology, and we are committed to offering products at the forefront of digital audio research," said Digigram President Philippe Girard-Buttoz. "Compared to MPEG-1 Layer 3 (MP3) audio, AAC provides higher quality audio reproduction with approximately 30 percent less data."

AAC is the latest technology developed by experts in the art and science of audio compression, and standardized under the MPEG-2 specification. Although several organizations -- AT&T, Dolby Laboratories, Fraunhofer Institute for Integrated Circuits and Sony Corp. -- worked together to develop AAC, this group has appointed Dolby Laboratories to administer an AAC licensing program and streamline the licensing process.

"AAC has gained momentum as exciting new hardware devices from major consumer electronics manufacturers are appearing on retail shelves, and record companies such as BMG, Universal and Warner Music have begun to distribute online music in AAC format," said Ramzi Haidamus, Dolby's director of business development. "Digigram is one of the first AAC licensees to target the professional tools market. We expect the availability of Digigram's upcoming products to provide important support for content owners, service providers and broadcasters seeking next-generation hardware and software tools for preparing material for delivery in AAC format."

Digigram's partners are software and hardware developers, system integrators and specialized resellers. For the PC, Digigram provides software tools that can be used with the full range of sound cards. Digigram's hardware solutions include PC cards and network audio terminals, as well as custom modules and products in a number of configurations.

"MPEG AAC is a logical addition and will be a powerful tool that will allow our partners to take full advantage of emerging audio technology," Digigram's Girard-Buttoz added. "As a leader in digital audio networking solutions, Digigram will move aggressively to incorporate AAC technology to our development partners for their end user products."

About AAC

AAC is high-quality audio coding technology and the solution of choice for many broadcast and electronic music distribution applications. AAC is compatible with all digital rights management, encryption and watermarking solutions available today. In independent tests, the coding efficiency of AAC proved to be superior to MP3, providing higher-quality audio reproduction at lower bit rates. AAC provides up to 48 channels of audio, sample rates of up to 96 kHz and can achieve ITU-R broadcast quality at 320 kbps for a 5.1-channel audio program. Developed and standardized as an ISO/IEC specification by four industry leaders (AT&T, Dolby Laboratories, Fraunhofer IIS, and Sony Corp.), AAC is supported by a growing number of hardware and software manufacturers.

About Digigram

Digigram (www.digigram.com) networking solutions for digital audio and remote management are key to the success of media, communications and industrial companies worldwide. Its innovations are implemented on computer sound cards, multimedia devices, audio production applications and other host platforms.

Digigram Powered products are installed in thousands of radio and television stations; audio recording and video post production facilities; corporate and commercial sound installations; telecommunications centers; and industrial plants around the globe. Products under its Aztec Radiomedia brand unlock the potential of networks by delivering advanced communications solutions for digital audio and data management and transmission.

Founded in 1985, Digigram has headquarters in Montbonnot, France, and is publicly traded on the Paris Stock Exchange. Customers are served from four regional business units: Digigram Europe (Strasbourg, France), Digigram Inc. (Arlington, Va.), Digigram Asia (Singapore) and Digigram America Latina (Buenos Aires, Argentina).

About AT&T

AT&T Corp (www.att.com) is among the world's premier voice, video and data communications companies, serving more than 80 million customers, including consumers, businesses and government. With annual revenues of more than $62 billion and 148,000 employees, AT&T provides services to customers worldwide.

The company runs the world's largest, most sophisticated communications network and has one of the largest digital wireless networks in North America. Its services are backed by the research and development capabilities of AT&T Labs, which is working to create the information services and communications network of tomorrow. AT&T Labs is a leader in the development of technologies and standards for audio (http://www.research.att.com/history/soundinnovation.html), speech, video and image compression; electronic commerce and digital copyright management; search and directory services; speech processing and coding of all sorts; network architecture, design, engineering and operations; and other areas critical to the advancement of new broadband communications and Internet offerings.

About Dolby Laboratories

Dolby Laboratories (www.dolby.com) is the developer of signal-processing systems used worldwide in applications that include motion picture sound, consumer entertainment products and media, broadcasting and music recording. Based in San Francisco with European headquarters in England, the privately held company also has offices in New York, Los Angeles, Shanghai, Beijing and Tokyo.

About Fraunhofer IIS

Fraunhofer IIS (www.iis.fhg.de/amm) is the leading research laboratory in the area of audio coding. For more than 10 years, Fraunhofer IIS has actively driven forward international standardization of several audio compression algorithms, including MPEG Layer-3 and AAC. Besides devising advanced algorithms, Fraunhofer IIS engineers focus on the effective implementation of state-of-the-art audio and video coding schemes on PCs and digital signal processors (DSPs). Fraunhofer IIS is active in international efforts focusing on methods for intellectual property management and protection, including MPEG-4 and SDMI.

About Sony

Sony Corp. (www.world.sony.com) is a leading manufacturer of audio, video, game, communications and information technology products for the consumer and professional markets. With its music, pictures, computer entertainment and online businesses, Sony is uniquely positioned to be a leading broadband entertainment company in the world. Sony recorded consolidated annual sales of more than $63 billion for the fiscal year ended March 31, 2000.