Euro1080 Adopts aacPlus/DTS(R) Surround Sound for New MPEG-4 HDTV Transmissions

DTS, Inc. (NASDAQ:DTSI): Pioneering HDTV service Euro1080 has
announced that it will implement aacPlus/DTS multi-channel audio with
its switch from MPEG-2 to higher quality MPEG-4 HD transmissions.

The broadcaster, which switched to the higher quality MPEG-4
transmissions across all of its channels on 2 January, will deliver
aacPlus multi-channel audio over the satellite to consumer's new
generation of MPEG-4 set top boxes for HDTV, where it is transcoded to
DTS Digital Surround, for decoding in home theatre systems in the
usual way.

Commenting, Jacques Schepers, Technical Director at Euro1080,
said, "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. Now we are adopting MPEG-4 compression across all
of our channels, we intend to incorporate the advantages inherent in
the aacPlus/DTS broadcast solution in our service plan, going forward
into 2007.

"In some countries we have a requirement to transmit the audio in
more than one language. This was a major reason why we required a more
efficient solution than was currently available for multi-channel
audio to accompany MPEG-4 pictures."

Until now, the barrier to broadcasters implementing the latest
high efficiency aacPlus audio codec for multi-channel HDTV broadcast
has been the lack of ability for consumers to decode the surround
sound in the home. Working with Coding Technologies in Europe, DTS has
enabled the 'transcoding' of the advanced aacPlus MPEG-4 audio codec
to DTS Digital Surround in the set-top box.

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

aacPlus employs a number of advanced open standard techniques
developed by Coding Technologies, which create significant bandwidth
efficiencies while maintaining or improving the perceived listening
quality. This reduces transmission costs for broadcasters, allowing
them to provide surround sound transmissions on a greater range of
programming.

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 HDTV station to broadcast in
Europe.

In 2005, the Belgium-based high definition media company launched
two additional HDTV stations: HD2 and HD5. HD2, the "focused" 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. HD5 is a demo and instruction channel. 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.both-worlds.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.