Jan 7, 2008

DTS Stirs Surround Sensation(TM) at CES 2008

New Simulated Surround Headphone / Speaker Solutions Meet Consumer Demand

LAS VEGAS--(BUSINESS WIRE)--Jan. 7, 2008--Meeting strong market demand for high quality surround sound derived from two speaker sources, DTS (NASDAQ:DTSI), a digital technology company dedicated to delivering the ultimate entertainment experience, unveils a new technology under the brand DTS Surround Sensation. DTS is showcasing prototypes of the first products during the 2008 Consumer Electronics Show; January 7-10 at booth # 21913 in the South Hall of the Las Vegas Convention Center. Throughout the show, the company will be holding live "A/B" demonstrations of DTS Surround Sensation Headphone technology.

"DTS has been studying the market for simulated surround sound technologies for many years, but up until now most available solutions have not achieved results that meet the standards our consumers demand," said Brian Towne, Senior Vice President and General Manager, Consumer Division at DTS. "That is changing with the introduction of DTS Surround Sensation. DTS is licensing these technologies so manufacturers will now be able to deliver a surround entertainment experience worthy of the DTS name, from either two speakers or stereo headphones."

DTS Surround Sensation processing contains significant psycho-acoustic information that alters human perception, making one believe that sounds actually occurring outside the boundaries of the two-speaker system or headphones. Developed with a key understanding of acoustics and years of knowledge in dealing with the properties of sound, DTS Surround Sensation creates a three-dimensional wall of sound that exceeds the limitations of just two speakers for an optimal surround sound experience. DTS Surround Sensation also supplements the weakened stereo image and ambience of digitally-compressed audio, while keeping the monaural components (such as solo vocals) unchanged.

The Need for DTS Surround Sensation

The consumer electronics marketplace is experiencing a growing need for simulated surround sound technology solution paralleling the growth of HDTV.

"While adoption of HDTV evolves, many people have their HDTVs set up in less than ideal situations and in spaces where a fully discrete 5.1-channel surround system is simply not feasible," said Dennis Goldenson, DTS Director of Research. "From the bedroom to PC workstations to laptops and portable headphone-based listening devices, DTS Surround Sensations is the answer for discerning listeners who want the ultimate entertainment experience as only DTS can deliver. DTS Surround Sensation provides the next best option for a great surround experience almost anywhere."

Key features of DTS Surround Sensation include:

Dialog Clarity -- The DTS algorithm enhances signal clarity to address problems that may occur due to competing signals from speakers and film content that is specifically mixed for cinema playback.

Soundstage Expansion -- In instances where the original source material is only two-channel input stream, DTS Surround Sensation will improve the listening experience by broadening the soundstage and creating a phantom center channel for improved clarity and audio crispness. This creates the sensation that the speakers or headphones are farther apart than they actually are, and some sounds seems to be directly in front of you.

Bass Enhancement -- DTS Surround Sensation restores the perception of fundamental low-frequency effects (LFE) by dynamically augmenting harmonics, yielding improved bass performance without the additional hardware costs of adding a subwoofer.

For more information on licensing DTS Surround Sensation headphone and speaker technology, manufacturers are encouraged to contact David Tan of DTS for more information at david.tan@dts.com, or call 818 706 3525.

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, HD DVD, Blu-ray Disc and Surround Music 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, Ireland, France, Italy, Canada, Hong Kong, Japan and China. For further information, please visit www.dts.com. DTS is a registered trademark of DTS, Inc.

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 timing, costs and attention attendant to the divesture of the non-consumer business, the transition to the next generation optical drives and consumer adoption of such technology, 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 does not intend to update any forward-looking statement to reflect events or circumstances arising after the date on which it was made.

Kristin Thomson, Director, Public Relations, 818-706-3525
e5 Marketing
Mark Smotroff, 415-332-0718