Dolby Laboratories Announces Closing of Initial Public Offering; Under

    Business Editors

    SAN FRANCISCO--(BUSINESS WIRE)--Feb. 23, 2005--Dolby Laboratories (NYSE:DLB) announced that it closed its initial public offering today. In the offering, Dolby Laboratories sold 14,625,000 shares of its Class A common stock, including 4,125,000 shares upon the exercise in full of the underwriters' over-allotment option, at $18.00 per share. An additional 17,000,000 shares were sold by Ray Dolby, founder and principal stockholder of Dolby Laboratories. Proceeds to Dolby Laboratories, net of underwriting discounts and commissions, were $247,455,000.
    Dolby's common stock trades on the New York Stock Exchange under the symbol "DLB."
    Morgan Stanley acted as the book-running colead manager, with Goldman, Sachs & Co. as the other colead manager, J.P. Morgan Securities as senior comanager, and Adams Harkness and William Blair & Company as comanagers.
    A final prospectus of the offering may be obtained from Morgan Stanley by emailing prospectus@morganstanley.com, or by contacting the prospectus department at Morgan Stanley & Co. Incorporated, 1585 Broadway, New York, NY 10036 or via telephone at 212-761-6775.

    About Dolby Laboratories

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

    Dolby and the double-D symbol are registered trademarks of Dolby Laboratories. All other trademarks remain the property of their respective owners. S05/16069 DLB-F

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CONTACT: Dolby Laboratories Paula Dunn, 415-645-5000 pdd@dolby.com or Kalt Rosen & Co. Howard Kalt, 415-397-2686 kalt@krc-ir.com

KEYWORD: CALIFORNIA NEW YORK INDUSTRY KEYWORD: BANKING IPO SOURCE: Dolby Laboratories

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