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DTD Unveils DTS-HD Brand For High Definition Media Formats

DTS UNVEILS DTS-HD BRAND FOR HIGH DEFINITION MEDIA FORMATS

DTS Renames DTS++ For The Consumer Market
& Announces Branding Campaign

Agoura Hills, CA — October 27, 2004 — DTS (Digital Theater Systems, Inc.) (NASDAQ: DTSI) unveiled today DTS-HD, as the new trademarked brand name for its lossless technology. Previously known under working name DTS++, the DTS-HD mark will denote media, source players and decoders that are compliant with the next generation high definition disc formats, Blu-ray Disc and High Definition DVD (HD-DVD). In addition to debuting the new brand and logo, DTS will support DTS-HD with a branding campaign to roll out in conjunction with the introduction of the new optical disc formats. DTS announced in September that its core 5.1-channel surround sound was selected as mandatory audio technology for both HD-DVD and Blu-ray Disc, and DTS-HD (DTS++ in some Blu-ray Disc and HD-DVD documents), was also chosen as an optional feature in both formats.

DTS-HD is a set of extensions to the Coherent Acoustics audio coding system, which also encompasses DTS Digital Surround, DTS-ES, and DTS 96/24. The introduction of DTS-HD will provide manufacturers and content providers with a complete range of DTS-branded technologies, incorporating lossless technology for next generation formats.

Signifying “best in class” technology, DTS-HD can support a virtually unlimited number of discrete surround sound channels, can downmix to 5.1- and two-channel, and can deliver audio quality at bit rates extending from DTS Digital Surround up to lossless. The only audio solution to provide up to lossless operation and backwards compatibility in a single bit stream, DTS-HD provides the highest quality audio performance available in the new format standards, while still being capable of playback in legacy equipment, such as existing home theater systems.

“We chose the name DTS-HD for the new formats in the consumer market because of both the strong association of DTS as a premium brand, and HD (high definition) as representing highest quality in the consumer electronics market,” said Brian Towne, Vice President, Consumer / Pro Audio Division at DTS. “As the industry prepares to introduce new hardware for next generation formats, DTS is developing a marketing campaign to support both manufacturers and content providers, while developing brand awareness among consumers. We are confident the marketplace will see that DTS-HD offers a tremendous opportunity for consumers to experience the best possible surround sound, while also providing crucial flexibility to hardware licensees and studios.”

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DTS personnel will be available to answer questions regarding DTS-HD at the 117th AES Convention at Booth #532 at the Moscone Convention Center in San Francisco, October 28-31, 2004.

About DTS
DTS (Digital Theater Systems, 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 processors, and there are over 280 million 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 5.1 Music Discs, DVD-Video, DVD-Audio and DVD-ROM software. Additionally, DTS is featured on more than 23,000 motion picture screens worldwide. Founded in 1993, DTS is headquartered in Agoura Hills, California and has offices in the United Kingdom, Japan and China. For further information, please visit www.dtsonline.com.

DTS is a trademark of Digital Theater Systems, Inc.

# # #
Press Contacts:
Kristin Thomson
Director, Public Relations
DTS
kthomson@dtsonline.com

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