DTS(R) and Coding Technologies Bring MPEG-4 Multi-Channel Audio for HDTV into the Home at CES

DTS, Inc. (NASDAQ: DTSI) and Coding Technologies today announced
the live demonstration of set-top box technology that enables delivery
of the latest MPEG-4 aacPlus multi-channel audio for HDTV to
consumers' existing home theater systems at the CES, January 8-12,
2007, in Las Vegas. The companies will hold demonstrations throughout
the show at the DTS booth #1 21544, South Hall, Las Vegas Convention
Center.

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. They can now do so with
immediate access to the entire installed base of DTS-enabled home
theater systems.

Until now, the major barrier to broadcasters implementing the
latest advanced, high efficiency multi-channel audio codecs for MPEG-4
based HDTV broadcasts has been the lack of any means for consumers to
decode the surround sound in the home. Working with Coding
Technologies in Europe, DTS has enabled the 'transcoding' of that
company's advanced aacPlus MPEG-4 audio codec to DTS Digital Surround
in the set-top box. With a simple SPDIF connection from the set-top
box, this can now be decoded in virtually all A/V receivers.

aacPlus employs a number of advanced open standard techniques
developed by Coding Technologies. This creates significant bandwidth
efficiencies and reduces transmission costs for broadcasters, allowing
them to provide surround sound transmissions on a greater range of
programming.

Pioneering HDTV service, Euro1080 has announced that it will
implement aacPlus surround sound as part of its recent switch from
MPEG-2 to higher quality MPEG-4 transmissions. Several other major
broadcasters in Europe and elsewhere are also planning to implement
the technology.

"Euro1080 has been the leading technical innovator in implementing
European HD broadcast services. We have always been ahead of the rest
of the industry, and first in the world to broadcast using the MPEG-4
standard," said Jacques Schepers, Technical Director at Euro1080. "Now
we are adopting MPEG-4 compression across all of our channels, and we
intend to incorporate the advantages inherent in the DTS/aacPlus
broadcast solution in our service plan, going forward into 2007."

Incorporating the aacPlus/DTS transcode, set-top boxes from
several manufacturers are scheduled to come to market imminently. IC
manufacturers have been producing the required chip sets for several
months now.

About Euro1080

Euro1080 plays a pioneering role in the field of HDTV in Europe
and began transmitting on 1st January 2004. For a long time,
Euro1080's HD1 was the first and the only TV station to transmit in HD
in Europe.

In 2005, the Belgium-based high definition media company launched
two additional HDTV stations: HD2 and HD5. HD2 (the "focussed"
channel) does not only broadcast exclusive concerts, sports and other
special events to cinemas, theatres and households, but is also very
well suited for B2B purposes via satellite. HD5 is a demo and
instruction channel. HD2 and HD5 are timesharing on one frequency.
When HD2 is active, HD5 is not and vice versa. In 2006, Euro1080
started with EXQI, the HD culture channels. www.euro1080.tv

About 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 or www.bothworlds.biz.

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 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.