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Mercedes, Lexus & Infiniti Debut 2006 Models With DTS-Capable Surround Sound Systems

MERCEDES, LEXUS & INFINITI DEBUT 2006 MODELS WITH DTS-CAPABLE SURROUND SOUND SYSTEMS

Agoura Hills, CA — February 8, 2006 — DTS (Digital Theater Systems, Inc.) (Nasdaq: DTSI) announces that five new US car models will offer audio systems that feature DTS 5.1-channel surround sound capability. The 2006 Mercedes S-Class sedan will include a DVD-Audio system with DTS multi-channel sound as a standard feature, while the 2006 Lexus GS, Lexus IS, Lexus LS and Infiniti M will each offer an optional DTS-capable surround audio system.

The 2006 Mercedes S-Class sedan will come standard-equipped with a Harman / Kardon DVD-Audio system, including DTS capability. The Mercedes S-Class will also include a demo disc featuring multi-channel music from DTS Entertainment. Additionally, the 2006 Lexus GS, Lexus IS and Lexus LS will each optionally offer a Mark Levinson DVD-Video / DVD-Audio system, which can play discrete DTS multi-channel music discs as well as DTS-encoded DVD-V content. The 2006 Infiniti M will also feature an optional Bose Studio Surround DVD-Video / DVD-Audio system, which can play discrete DTS multi-channel music discs and DTS-encoded DVD-V content.

The 2004 Acura TL was the first car in the U.S. to include an OEM car audio system that incorporates DTS capability as a standard feature. Last year, the Acura RL, Land Rover’s Range Rover and the Cadillac STS also began offering audio systems with DTS capability. Today, most major after-market car audio manufacturers produce systems featuring DTS decoders, including Alpine, Clarion, Eclipse, JVC, Kenwood, Panasonic, Pioneer, Sanyo and Sony.

“As we’ve seen over the past couple of years, car manufacturers are integrating surround sound systems into more of their OEM models as consumers are beginning to demand a multi-channel audio experience in their vehicles,” said Brian Towne, Senior Vice President, Consumer / Pro Audio Division at DTS. “With the addition of Mercedes, Lexus and Infiniti integrating DTS-capable surround sound systems, we expect to see the automotive industry to continue to integrate multi-channel systems in the coming years.”

In addition to playing multi-channel content, each of these systems can play more than 100 DTS-encoded surround music titles available through DTS Entertainment, including Sting’s Nothing Like The Sun, Sheryl Crow’s Globe Sessions and Queen’s The Game. DTS Entertainment titles are also available at many e-tailers and retailers that sell DVDs.

About DTS Consumer Division
DTS is an innovator in the development of multi-channel digital sound solutions for the consumer electronics and professional audio markets, including home A/V, video games and consoles, broadcast, personal computers and mobile audio systems. Today, every major consumer electronics manufacturer supports DTS technology. Addressing the demand for DTS-encoded content worldwide, DTS also offers hardware and software encoders to the professional audio communities, allowing them to produce DTS audio content directly.

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 processors, and there are more than 300 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 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.

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 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.
# # #

DTS Press Contact:
Kristin Thomson
Director, Public Relations
DTS
818-706-3525
kthomson@dtsonline.com

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