Dolby Laboratories Turns 40; Company Celebrates History of Enhancing the Entertainment Experience

Dolby Laboratories (NYSE:DLB), founded by Ray Dolby onMay 17, 1965, celebrates its 40th anniversary today. The company gotits start by introducing Dolby(R) A-type noise reduction, whichsignificantly improved the sound of recorded audio by reducingbackground noise inherent to professional tape recordings. Forty yearslater, Dolby has helped define high-quality audio entertainment forbillions of consumers. From its roots in professional and cinemaaudio, Dolby has grown into consumer applications as well. Consumerscan now experience theater-quality sound in their own family rooms viahome entertainment systems powered by Dolby technologies, solidifyingDolby as one of the most recognizable brand names in the entertainmenttechnology industry.

"We are very proud of our accomplishments over the last 40 yearsand look forward to driving even more improvements to the consumerexperience for years to come," said Bill Jasper, President and ChiefExecutive Officer, Dolby Laboratories. "Dolby's enthusiasm anddedication to improving audio has made it a pioneer in soundtechnologies and is largely the reason why the company name issynonymous with high-quality entertainment."

In 1972, Dolby made its foray into the cinema with theintroduction of the first Dolby cinema sound product, the Model 364.Dolby continued to develop revolutionary products for the cinemaincluding its first multichannel audio technology, Dolby Stereo. In1977, the technology was featured in two hit films, Star Wars andClose Encounters of the Third Kind. After the blockbuster success ofthese films and the impact of the new audio format on moviegoers, itwasn't long before feature films of all genres were being releasedwith Dolby audio technology. Today, approximately 78,000 Dolby cinemaprocessors have been sold worldwide, enabling theaters to provide amore captivating movie experience.

The success of Dolby's innovative technologies in the cinema waseventually ushered into the home, creating what we know today as thehome theater environment. With Dolby Surround, a consumer extension ofthe Dolby cinema project, and subsequent technologies such as DolbyPro Logic(R) and Dolby Digital, the company helped to launch theemergence of surround sound systems for the home.

Dolby Digital has become one of the most ubiquitous audiotechnologies. Dolby Digital is an audio standard for AdvancedTelevision Systems Committee (ATSC) digital broadcast television(DTV), and for high-definition TV (HDTV), digital cable, and digitalbroadcast satellite (DBS) transmissions. As a result, many of today'sTV programs are broadcast in multichannel audio for playback on hometheater surround sound systems. Viewers can enjoy TV broadcastprogramming such as the Super Bowl and popular shows like CSI: CrimeScene Investigation, Desperate Housewives, and Lost in enhancedsurround sound for ultimate viewing. Tens of millions of Dolby Digitaldecoders have been sold to date, and virtually every DVD includes aDolby Digital soundtrack.

Dolby continues to pave the way for audio innovation with recenttechnology introductions that include Dolby Digital Plus, Dolby ProLogic IIx, Dolby Digital Stereo Creator, Dolby Digital 5.1 Creator,Dolby Digital Recording, and MLP Lossless(TM). These Dolbytechnologies are playing an integral role in providing consumers withhigh-quality entertainment experiences in cinemas, home theaters, PCs,games, and automobiles. Whether it's a next-generation video gameconsole, personal video recorder (PVR), digital camcorder, HDTV, mediacenter PC, or the latest in-car entertainment system, Dolby is helpingto enhance the entertainment value.

In addition to its commitment to developing exceptional productsand technologies for cinema and consumer applications, Dolby isdedicated to providing the content creation, distribution, andexhibition industries with dedicated support services. These effortshelp ensure that professionals can deliver high-quality entertainmentexperiences to consumers through the use of Dolby technologies.

Stemming from success with high-quality audio in the movies, Dolbyis now providing a digital cinema solution featuring unsurpassedpicture and sound quality. Dolby recently introduced Dolby DigitalCinema, which is being commercially launched in select cinemasworldwide in conjunction with the release of Star Wars: EpisodeIII -- Revenge of the Sith.

About Dolby Laboratories

Dolby Laboratories (NYSE:DLB) develops and delivers products andtechnologies that make the entertainment experience more realistic andimmersive. For four decades Dolby has been at the forefront ofdefining high-quality audio and surround sound in cinema, broadcast,home audio systems, cars, DVDs, headphones, games, televisions, andpersonal computers. Based in San Francisco with European headquartersin England, the company has entertainment industry liaison offices inNew York and Los Angeles, and licensing liaison offices in London,Shanghai, Beijing, Hong Kong, and Tokyo. For more information aboutDolby Laboratories or Dolby technologies, please visit www.dolby.com.

Certain statements in this press release, including statementsregarding the performance, capabilities, and impact of Dolby'sproducts and technologies, the potential benefits that Dolbycustomers, including consumers, studios, exhibitors and audiences mayderive from these products and technologies, the anticipated marketacceptance of these products and technologies, the benefits derived byfilm industry professionals, audiences, and consumers from Dolby'sengineering services; market acceptance for these services; andanticipated future technology innovations for the entertainmentindustries are "forward-looking statements" that are subject to risksand uncertainties. These risks and uncertainties, which could causethe forward-looking statements to differ materially from anticipatedresults, include, without limitation, risks associated with buildingcustomer and consumer acceptance of and demand for Dolby'stechnologies and services, including competition risks; risksassociated with the development of the entertainment marketsgenerally; rapid changes in technical requirements for digitalentertainment; risks associated with introducing new technologies toexhibitors, broadcasters, content creators, manufacturers andconsumers; risks associated with providing engineering services tosuccessfully increase the quality of the entertainment experience inhomes, theaters and other environments; risks associated with havingour products and services adopted as industry standards; and otherrisks detailed in Dolby's Securities and Exchange Commission filingsand reports, including, its quarterly report on Form 10-Q for itsfiscal quarter ended April 1, 2005. Dolby disclaims any obligation toupdate information contained in these forward-looking statementswhether as a result of new information, future events or otherwise.

Dolby, Pro Logic, and the double-D symbol are registeredtrademarks of Dolby Laboratories. MLP Lossless is a trademark of DolbyLaboratories. S05/16330 DLB-F