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Dolby Launches Dolby Digital Cinema in Theatres Worldwide with Star Wars Episode III: Revenge of the Sith

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May 23, 2005

Dolby Launches Dolby Digital Cinema in Theatres Worldwide with Star Wars Episode III: Revenge of the Sith

Dolby Laboratories (NYSE:DLB) announced today the commercial launch of its Dolby(R) Digital Cinema system in select cinemas around the world with Star Wars Episode III: Revenge of the Sith. As the final chapter to the Star Wars saga, this film is the first theatrical release to leverage Dolby's digital cinema product offering. Theatres in Berlin, London, Los Angeles, New York, Paris, and San Francisco, among others, have installed the Dolby Digital Cinema system to present Star Wars Episode III: Revenge of the Sith. In addition, Lucasfilm Ltd. selected the Dolby Digital Cinema system for the movie's Los Angeles and New York premieres, key industry screenings, and the London Leicester Square event.

Dolby's latest innovation, Dolby Digital Cinema, is a system designed to enhance the moviegoing experience. It is a comprehensive, reliable digital cinema solution that provides theatres with the technology to store and decode digital files, and then deliver pristine digital movies to the big screen.

Continuing its successful tradition of introducing technological innovations for cinemas in conjunction with Star Wars film releases, Dolby brings to market its digital cinema solution to provide the highest quality digital cinema experience for Revenge of the Sith. In 1977, Dolby teamed with Lucasfilm Ltd. and Twentieth Century Fox to introduce multichannel Dolby Stereo sound with Star Wars Episode IV: A New Hope, and in 1999, Dolby and Skywalker Sound, a division of Lucasfilm Ltd., codeveloped Dolby Digital Surround EX(TM) for the release of Star Wars Episode I: The Phantom Menace.

"We're pleased to be working again with Lucasfilm Ltd. as our latest technical offering is commercially launched in theatres to advance the cinematic experience for movie fans worldwide," said Tim Partridge, General Manager and Senior Vice President, Professional Division, Dolby Laboratories. "Digital cinema is the next big advancement in the motion picture industry, and it will greatly impact the way films are created, distributed, and presented to consumers."

The Dolby Digital Cinema system has been engineered from the ground up for real-world projection booths. It offers superb picture quality, simplified operation, and outstanding reliability, plus the highest level of anti-piracy security in the business. Meeting all the technical specifications of an open architecture system as put forth by the Digital Cinema Initiatives (DCI), Dolby Digital Cinema is designed to enable exhibitors to make a smooth transition to digital.

Dolby Digital Cinema: System Components

The three major components of the Dolby Digital Cinema presentation system are designed to work seamlessly to provide reliability, flexibility, adaptability, and system security. At the core of the Dolby Digital Cinema system is the Dolby Show Player. It contains a precision image decoder designed specifically for high-accuracy display on the cinema screen. Image quality is superb, and the custom design supports higher data rates than other image decoders. The Dolby Show Store software can store up to ten hours of digital content for playback through the Dolby Show Player.

The Dolby Show Manager gives exhibitors advanced control over scheduling and playback via a user-friendly screen-based interface. It is fully extensible from single screen digital installations to complete complexes, and can even control film-only as well as digital and hybrid screens.

About Dolby Laboratories

Dolby Laboratories (NYSE:DLB) develops and delivers products and technologies that make the entertainment experience more realistic and immersive. For 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. Based in San Francisco with European headquarters in England, the company has entertainment industry liaison offices in New York and Los Angeles, and licensing liaison offices in London, Shanghai, Beijing, Hong Kong, and Tokyo. For more information about Dolby Laboratories or Dolby technologies, please visit www.dolby.com.

Dolby and the double-D symbol are registered trademarks of Dolby Laboratories. Surround EX is a trademark of Dolby Laboratories. S05/16359 DLB-F

Certain statements in this press release, including statements regarding the performance and capabilities of Dolby Digital Cinema, the potential benefits that Dolby's customers, including studios and exhibitors, and audiences may derive from Dolby Digital Cinema and digital cinema in general, the anticipated market acceptance of Dolby Digital Cinema, Dolby's ability to continue to successfully develop entertainment technologies that improve or enhance the cinematic experience and Dolby's ability to develop, maintain and strengthen relationships with industry participants such as Lucasfilm, are "forward-looking statements" that are subject to risks and uncertainties. These risks and uncertainties, which could cause the forward-looking statements to differ materially from anticipated results, include, without limitation, risks associated with building market acceptance of and demand for Dolby Digital Cinema product lines and digital cinema in general by filmmakers, studios, cinema operators and audiences, competition risks for digital theatre technologies; rapid changes in technical requirements for movie theatrical playback technologies, specifically, and entertainment technologies for movies in general; risks associated with having Dolby's technologies adopted as industry standards; risks associated with developing, maintaining and strengthening relationships with industry participants; risks associated with the health of the movie industry in general; and other risks detailed in Dolby's Securities and Exchange Commission filings and reports, including, its quarterly report on Form 10-Q filed with the SEC for the quarter ended April 1, 2005. Dolby disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events or otherwise.

SOURCE: Dolby Laboratories

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