Dolby Digital Plus and MLP Lossless Selected as Optional Audio Codecs by the Blu-ray Disc Association.

SAN FRANCISCO -- Dolby Laboratories (NYSE: DLB) today announced that Dolby(R) audio technologies have been selected as optional audio codecs by the Blu-ray Disc Association (BDA). Dolby Digital Plus and MLP Lossless(TM) audio technologies have been approved for the next-generation Blu-ray Disc. Blu-ray Disc was developed to enable recording, rewriting, and playback of high-definition (HD) video and to store large amounts of data (25 GB for single layer, 50 GB for dual layer on a single-sided disc). In addition to the Dolby technologies mentioned above as optional codecs, the BDA selected Dolby Digital as a mandatory audio standard for Blu-ray Disc in September 2004.

"The advanced capabilities of Dolby Digital Plus and MLP Lossless offer compelling audio performance for next-generation HD video formats," said Craig Eggers, Marketing Director, Consumer Electronics, Dolby Laboratories. "Dolby Digital Plus introduces new levels of audio quality, interactivity, and compatibility. MLP Lossless delivers the highest audio fidelity possible without compromising picture quality or video bit rates--a perfect complement to Dolby Digital Plus."

Dolby Digital Plus is an extension of Dolby Digital, an approved audio standard for DVD-Video worldwide and for North American digital cable and digital television broadcasting. While providing bit-rate and channel extendibility for future formats, Dolby Digital Plus is designed to be fully compatible with the millions of A/V receivers equipped with Dolby Digital technology in the market today.

Dolby Digital Plus is also designed to offer discrete channel coverage to 7.1 or more channels, as well as new streaming and mixing capabilities for the future needs of content creators and providers. Consumers may one day watch a feature-length movie with the director's commentary streamed directly from the studio's website.

MLP Lossless technology, licensed by Dolby, fulfills both industry content creation and consumer demand for lossless audio in next-generation media. Bit-for-bit identical during playback to the original studio masters, MLP Lossless enables discrete multichannel reproduction beyond present 5.1 or 7.1 applications. Additionally, MLP Lossless coding efficiencies enable more bits to be allocated to picture quality and special features. Discs with MLP Lossless can provide extremely high digital audio quality and ample data space for value-added content.

As the industry shifts to HD entertainment, Dolby intends to provide artists, directors, producers, and other content creators the optimum tools they need to communicate their art form at the highest-quality levels. Dolby technologies also offer consumers unprecedented audio fidelity and flexibility with next-generation playback devices, while maintaining backward-compatibility with current A/V receivers.

"Dolby is a leader in multichannel audio technologies and the advanced capabilities of Dolby Digital Plus and the original performance quality of MLP Lossless have much to offer the Blu-ray Disc format," said Pioneer's Andy Parsons, Senior Vice President, Advanced Product Development, Blu-ray Disc Association. "From the outset, our goal has been to equip the content industry with the tools needed to deliver the image and audio quality that a high-definition environment demands. At the heart of this effort is Blu-ray's unparalleled capacity. The addition of the Dolby technologies is another positive step in this direction."

About Dolby Laboratories

Dolby Laboratories (NYSE: DLB) develops and delivers products and technologies that make the entertainment experience more realistic and immersive. For nearly four decades, Dolby has been at the forefront of defining high-quality audio and surround sound in cinema, broadcast, home audio systems, cars, DVDs, headphones, games, televisions, and personal computers. Based in San Francisco with European headquarters in England, the company has entertainment industry liaison offices in New York and Los Angeles, and licensing liaison offices in London, Shanghai, Beijing, Hong Kong, and Tokyo. For more information about Dolby Laboratories or Dolby technologies, please visit www.dolby.com. DLB-F

Certain statements in this press release, including statements regarding the performance and capabilities of Dolby Digital, Dolby Digital Plus, and MLP Lossless and its applications with HD formats generally, and the Blu-ray Disc format in particular; the anticipated or potential benefits that artists, directors, producers, other content creators, broadcasters, and other distributers and consumers may derive from these technologies; the anticipated market acceptance of these technologies; and potential future uses for these technologies are "forward-looking statements" that are subject to risks and uncertainties. These risks and uncertainties, which could cause the forward-looking statements to differ materially from anticipated results, include, without limitation, risks associated with building market acceptance of and demand for Dolby Digital, Dolby Digital Plus, and MLP Lossless technologies; risks associated with building market acceptance for HD formats in general; competition in the market for high-quality audio technologies; rapid changes in technical requirements for high-definition technologies and packaged media; risks associated with introducing new technologies to consumers; and other risks detailed in Dolby's Securities and Exchange Commission filings and reports, including its registration statement on Form S-1, as amended, filed in connection with its initial public offering. Dolby disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.

Dolby and the double-D symbol are registered trademarks of Dolby Laboratories. MLP Lossless is a trademark of Dolby Laboratories. S05/16172