Dolby Pro Logic II Technology in More Than 15 Million Products; Creates Compelling Surround Sound Listening Experiences from Stereo Sources.

Business Editors/High-Tech Writers

SAN FRANCISCO--(BUSINESS WIRE)--April 13, 2004

Dolby Laboratories announced today that Dolby(R) Pro Logic(R) II decoding technology is now incorporated into more than 15 million products worldwide. Developed for home A/V receivers, automobiles, and personal computers (PCs), Dolby Pro Logic II technology creates a natural and convincing five-channel listening experience from any stereo source.

Dolby Pro Logic II is widely recognized as the standard for matrix surround decoding technology. The groundbreaking technology unlocks directional cues in stereo (two-channel) audio content and Dolby Surround and Pro Logic II-encoded material, and processes them into a five-channel surround sound experience.

For many, listening to CDs played on a Dolby Pro Logic II decoder is like rediscovering their music collection.

"Dolby Pro Logic II breathes new life into stereo television broadcasts, VHS movies, videogames, and CDs alike," said Craig Eggers, Director of Consumer Electronics Marketing at Dolby Laboratories. "Critics agree that Dolby Pro Logic II provides the most natural method of transforming traditional two-channel content into a surround sound listening experience without the unwanted coloration and steering artefacts that have characterized other matrix surround solutions."

With more than 15 million products adopting Dolby Pro Logic II since its introduction three years ago, consumers and manufacturers have confirmed the value Dolby surround sound technologies bring to the home entertainment experience.

"Dolby is a pioneer in the areas of sound and entertainment," said Danielle Levitas, Director of Consumer Markets and Technologies at IDC. "Consumers are now expecting more from their home theater and in-car entertainment systems. Dolby Pro Logic II unlocks the potential of consumers' music and video sources, and serves as a bridge technology that gets consumers excited about multichannel music as they move to discrete multichannel music formats like DVD-A."

"As a manufacturer of both home audio and mobile electronics products, Kenwood can attest to the value of incorporating Dolby Pro Logic II technology in order to offer the premium in sound entertainment," said Rick Noetzli, Product Manager for Mobile Electronics at Kenwood USA. "Kenwood products equipped with Dolby Pro Logic II provide consumers with a truly immersive and realistic 5.1-channel surround listening experience from two-channel stereo music recordings."

Dolby Laboratories expanded the five-channel Pro Logic II listening experience to 7.1 channels with the introduction of Dolby Pro Logic IIx in 2003. Dolby Pro Logic IIx works with any stereo, Dolby Surround, Dolby Pro Logic II, or Dolby Digital encoded material to create a seamless, natural surround sound field that immerses the listener in the entertainment experience.

Following are recent highlights of Dolby Pro Logic II applications.

-- Dolby Pro Logic II is now featured in four car models: the

Volvo XC90, Volvo S40, Volvo V50, and the Aston Martin DB9.

-- Dolby Pro Logic II can also be found in aftermarket car

products from such manufacturers as Alpine, Eclipse, Pioneer,

Clarion, and Kenwood.

-- According to retail data from the NPD Group, 80 percent of

top-selling video game titles this holiday season featured

Dolby Pro Logic II technology, including Nintendo's Mario

Kart(R): Double Dash!!, Electronic Arts' Medal of Honor(TM):

Rising Sun, and Square Enix's Final Fantasy(R) X-2. Dolby Pro

Logic II is featured on the Sony PlayStation(R) 2 and Nintendo

GameCube(TM), and in more than 100 game titles.

-- This season, Fox's NASCAR coverage joined the growing ranks of

television events broadcast in Dolby Pro Logic II, enabling

viewers without Dolby Digital services to receive a

full-bandwidth, five-channel surround sound experience.

-- Thousands of commercially available videotapes and TV programs

encoded in Dolby Surround can be played in compelling surround

sound via home theater systems with Pro Logic II technology.

About Dolby Laboratories

Dolby Laboratories creates technologies that intensify and enhance the entertainment experience. For nearly four decades, Dolby has been instrumental in 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 privately held company has entertainment industry liaison offices in New York and Los Angeles, and licensing liaison offices in Hong Kong, Shanghai, Beijing, and Tokyo. For more information about Dolby Laboratories or Dolby technologies, please visit www.dolby.com.

Note to Editors: Dolby, Pro Logic, and the double-D symbol are registered trademarks of Dolby Laboratories. All other trademarks remain the property of their respective owners.