European Broadcasters Choose Coding Technologies and DTS Compression Technologies to Deliver Enhanced Audio Experience.

MPEG-4 aacPlus selected for satellite and terrestrial transmission paths

LAS VEGAS & NUREMBERG, Germany -- Only one year after introducing the MPEG-4 aacPlus/DTS audio transcoding for digital surround sound TV broadcasting, DTS[R] Inc. (NASDAQ: DTSI) and Coding Technologies today announced the operational phase of their combined compression solution at the NAB (National Association of Broadcasters) Convention, in Las Vegas. Coding Technologies' aacPlus audio codec is currently being deployed for digital satellite and terrestrial broadcasting by HDTV broadcaster Euro1080 and in Norway's MPEG-4 DVB-T platform. Already earlier this year, major chip set manufacturers such as Broadcom, STMicroelectronics and Conexant announced that they intend to support single chip solutions for set-top boxes with aacPlus/DTS audio transcoding, enabling backwards compatibility to the world's installed base of home theater systems.

With the efficiency and audio quality of the aacPlus codec, consumers can now receive much more HDTV programming in high quality surround sound, allowing broadcasters to deliver more movies, more sports, more documentaries and more dramas in 5.1 channels than ever before. They can also provide programming with multiple language surround soundtracks, as on DVD releases.

Until now, the major barrier to broadcasters implementing the latest advanced, high efficiency multi-channel MPEG-4 audio codecs for HD (High Definition) and SD (Standard Definition) TV broadcasts has been the lack of ability for consumers to decode surround sound in the home. Working with Coding Technologies in Europe, DTS has enabled the 'transcoding' of the company's advanced MPEG-4 aacPlus audio codec to DTS Digital Surround in the set-top box.

Capable of improving the efficiency and quality of MPEG-4 based multi-channel audio, Coding Technologies' aacPlus audio format employs a number of advanced open standard compression techniques which release significant bandwidth and reduce transmission costs for broadcasters. The technology will allow Norway's DVB-T and Euro1080's DVB-S2 platforms to transmit a greater range of programming in 5.1-channel audio quality as part of their migration to second generation MPEG-4 broadcast technology.

Stefan Meltzer, Coding Technologies' Vice President of Business Development, said, "The aacPlus/DTS advantage presents broadcasters with the dual benefit of higher quality at lower cost and greater compression efficiency. We are able to offer a real alternative to the current multi-channel audio compression technique for broadcasting and believe that this format offers today's broadcasters the increased flexibility that they need for their individual audio requirements."

Coding Technologies' codec has the support of component manufacturers across the broadcast chain, including set-top box vendors, chip manufacturers and encoder vendors.

Broadcaster's concerns are mitigated by the capabilities of aacPlus in dialogue normalization, dynamic range control and downmix to stereo as standard, which delivers improved quality without any need for the viewer to update the home cinema set-up.

"As multi-channel audio becomes an increasingly important consideration for television viewers, more broadcasters are looking to our aacPlus/DTS solution as an efficient way to streamline transmission and cut costs while delivering the end-user experience that viewers demand," commented Brian Towne, Senior Vice President & General Manager, Consumer Division, DTS. "We look forward to working with other digital broadcasters to enhance their audio offering."

aacPlus can be used in standard or high definition deployments. Backwards compatibility ensures that audiences across the viewing spectrum can benefit from it. Capable of integrating with legacy deployments in the combination with DTS, aacPlus is also versatile enough to offer its high quality audio improvements through existing A/V receivers.

All trade names, company names and product names are trademarks or registered trademarks of the respective owners.

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.

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.