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Dolby Upgrades Dolby Digital Cinema Systems With JPEG 2000, Watermarking, and More

Dolby System Supports Digital Cinema Initiatives, LLC (DCI) Specifications

SAN FRANCISCO, Mar 07, 2007 (BUSINESS WIRE) -- Dolby Laboratories, Inc. (NYSE:DLB) today announced that it has completed upgrading its installed Dolby(R) Digital Cinema systems with JPEG 2000 decoding throughout North America, Japan, and Korea. The company has also added advancements in security including watermarking and CineLink(TM) 2 as well as ingest for 4K file formats.

"This is a milestone year for the digital cinema industry, and we want to assure our studio and exhibitor customers that we believe that Dolby Digital Cinema is equipped with the necessary features and functionality currently specified by DCI," said Tim Partridge, Senior Vice President and General Manager, Professional Division, Dolby Laboratories. "Dolby is moving towards the transition to digital cinema worldwide, and we strongly believe that all vendors must adhere to digital cinema standards to ensure interoperability for a viable digital cinema business globally."

With upgrades to its systems in North America, Japan, and Korea, Dolby continues to drive towards adherence to all the specifications that Digital Cinema Initiatives, LLC has outlined. The system now supports both JPEG 2000 and MPEG-2 file formats allowing exhibitors to play back JPEG 2000-encoded content while fulfilling the need to present alternative content in the MPEG format.

Dolby has also rolled out security enhancements to its Dolby Digital Cinema unit. The upgrade included CineLink 2 link encryption and video forensic watermarking, each adding an extra layer of security as required by the DCI specifications. Watermarking enables a studio to trace any pirated film back to the theatre from which it was copied.

In addition, the company upgraded its Dolby Digital Cinema servers to accommodate 4K file ingest.

To date, more than 50 digital movies have been presented in Dolby Digital Cinema with over 200 systems installed worldwide.

To learn more about Dolby Digital Cinema, please visit www.dolby.com/promo/digitalcinema.html.

About Dolby Laboratories

Dolby Laboratories (NYSE:DLB) develops and delivers products and technologies that make the entertainment experience more realistic and immersive. For more than 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. For more information about Dolby Laboratories or Dolby technologies, please visit www.dolby.com.

Certain statements in this press release, including statements regarding the performance, features, security, reliability, capabilities, and impact of Dolby's digital cinema products; the potential benefits that Dolby customers, exhibitors and audiences, may derive from these products and technologies and from digital cinema in general; the adherence of the Dolby Digital Cinema system to DCI specifications; and the anticipated market acceptance of Dolby Digital Cinema systems are "forward-looking statements" that are subject to risks and uncertainties. These forward-looking statements are based on management's current expectations. The following important factors, without limitation, could cause actual results to differ materially from those in the forward-looking statements: risks that Dolby Digital Cinema systems may not perform as anticipated or may not comply with DCI standards; risks associated with building customer and consumer acceptance of and demand for Dolby's technologies and services throughout the world; risks associated with building market acceptance of and demand for Dolby Digital Cinema systems and related services and digital cinema in general by filmmakers, studios, cinema operators, and audiences; competition risks for digital theatre technologies; risks associated with the development of the markets for digital cinema generally; rapid changes in technical requirements for movie theatrical playback technologies, specifically, and entertainment technologies for movies in general; risks associated with developing proprietary technologies and products based on "open standards"; risks associated with the health of the motion picture industry in general; risks associated with developing, maintaining, and strengthening relationships with industry participants; risks associated with introducing new technologies; and other risks detailed in Dolby's Securities and Exchange Commission filings and reports, including the risks identified under the section captioned "Risk Factors" in its most recent Quarterly Report on Form 10-Q. 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. CineLink is a trademark of Texas Instruments. S07/18091 DLB-G

SOURCE: Dolby Laboratories, Inc.

Dolby Laboratories
Joshua Gershman, 415-645-5611
joshua.gershman@dolby.com
or
mPRm Public Relations
Stephanie Tannenberger, 323-933-3399 ext. 4252
stannenberger@mprm.com

Copyright Business Wire 2007

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