Malco, Megaplex, and Premiere Theaters Transform Multiplexes With Dolby Digital Cinema

Dolby Laboratories, Inc. (NYSE:DLB) today announced that Malco Theatres, Megaplex Theatres, and Premiere Theaters LLC have added Dolby® Digital Cinema systems in several of their locations. Malco and Megaplex Theater chains are currently converting all their screens at specific locations from film to digital. Premiere completed the Dolby Digital Cinema conversion last January. "The move to digital cinema is gaining a foothold in the heartland of America as theatre chains are able to present their patrons with opening-night quality every night,” said Tim Partridge, Senior Vice President and General Manager, Professional Division, Dolby Laboratories. "Dolby’s ultimate goal is to enhance the moviegoing experience. The selection by Malco, Megaplex, and Premiere is a tribute to the quality digital cinema technology we produce.” Dolby Digital Cinema features a complete digital system for storing, managing, and playback of digital movies. Unlike traditional film, digital movies maintain pristine quality and a rock solid image for every presentation, eliminating film scratches and screen dust that distract from the moviegoing experience. Also, the ease of digitally transferring movies across screens in the multiplex allows popular movies to be shown on multiple screens with no need to wait for additional film prints. Malco Theaters, a leading regional exhibitor, has successfully converted to Dolby Digital Cinema systems in two of its multiplexes: 12 digital cinema systems in its Pinnacle Hills Cinema in Rogers, Arkansas, and 16 systems in its Paradiso Theatre in Memphis, Tennessee. Malco has plans to convert additional multiplexes throughout the year and has already converted nine of its 17 screens at its Malco Grandview in Madison, Mississippi, and seven of its 12 screens at the Malco Cinema in Fort Smith, Arkansas. "We are at the forefront of the digital cinema evolution as we continue to transition our screens to digital,” said Mike Thomson, Vice President Operations and Technology, Malco Theatres. "Dolby Digital Cinema has provided us with a reliable and easy-to-use solution that delivers crystal clear images every time a movie is shown. It makes a huge difference to our patrons.” Megaplex Theatres, a regional exhibitor chain based in Utah, has been showing digital content for more than a year. On average, 80 percent of Megaplex content is shown in digital, including more than 150 movie titles to date. The Megaplex 12 Gateway, in Salt Lake City, Utah has been converted to all Dolby Digital Cinema. Megaplex has two other multiplexes scheduled for completion this summer. ”We have definitely seen an increase in interest toward digital cinema," said Dave Bollard, Marketing Manager, Megaplex Theatres. "The educated moviegoer wants to see films in digital for the highest quality movie presentation. Right now, we have 39 screens in digital and consumers are requesting to see films in digital.” Independent theatre chain Premiere Theaters LLC, located in Melbourne, Florida, became the first all Dolby Digital Cinema multiplex, using 10 Dolby systems. "Premiere Theaters Oaks 10 prides itself on delivering a high-end cinema experience,” said Rob Kurrus, President of Premiere Theaters LLC. "Our customers want to see amazing picture quality, which we can deliver every night using Dolby Digital Cinema.” To learn more about Dolby Digital Cinema, please visit www.dolby.com/promo/digitalcinema.html. About Dolby Laboratories Dolby Laboratories (NYSE: DLB) develops and delivers products and technologies that make the entertainment experience more realistic and immersive. For more than 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. For more information about Dolby Laboratories or Dolby technologies, please visit www.dolby.com. Certain statements in this press release, including statements regarding the performance, features, security, reliability, capabilities, and impact of the Dolby Digital Cinema system; Dolby’s expectations regarding the future plans to convert additional Malco and Megaplex sites to Dolby Digital Cinema systems; the potential benefits that Dolby customers, content providers, exhibitors, and audiences may derive from these products and technologies and from digital cinema in general; and the anticipated market acceptance of Dolby Digital Cinema systems, are "forward-looking statements" that are subject to risks and uncertainties. These forward-looking statements are based on management's current expectations. The following important factors, without limitation, could cause actual results to differ materially from those in the forward-looking statements: risks that Dolby Digital Cinema systems may not perform as anticipated or may not comply with DCI standards; risks associated with building customer and consumer acceptance of and demand for Dolby technologies and services throughout the world; risks associated with building market acceptance of and demand for Dolby Digital Cinema systems and related services and digital cinema in general by filmmakers, studios, cinema operators, and audiences; competition risks for digital theater technologies; risks associated with the development of the markets for digital cinema generally; rapid changes in technical requirements for movie theatrical playback technologies specifically and entertainment technologies for movies in general; risks associated with cinema content providers refusing or failing to provide digital content for digital cinema systems in general, and for Dolby Digital Cinema systems specifically; risks associated with developing proprietary technologies and products based on "open standards"; risks associated with the health of the motion picture industry in general; risks associated with developing, maintaining, and strengthening relationships with industry participants; risks associated with introducing new technologies; and other risks detailed in Dolby's Securities and Exchange Commission filings and reports, including the risks identified under the section captioned ”Risk Factors" in its most recent Periodic Report on Form 10-Q or 10-K. Dolby disclaims any obligation to update information contained in these forward-looking statements, whether as a result of new information, future events, or otherwise. Dolby and the double-D symbol are registered trademarks of Dolby Laboratories. S07/18383 DLB-G