DTS INTRODUCES THE ADVANCED DTS DIGITAL CINEMA ENCODER DTS Introduces The Advanced DTS Digital Cinema Encoder

First to Employ JPEG 2000 'Constant Quality' Encoding for D-Cinema

March 21, 2006

DTS, Inc. (NASDAQ: DTSI), the leading digital entertainment company, expanding its Cinema Division products portfolio, announces the DTS Digital Cinema Encoder, the first commercially available encoder that provides 'Constant Quality' encoding for D-Cinema presentation. The DTS Digital Cinema Encoder uniquely utilizes JPEG2000 image compression with DTS Variable Bit Rate (DTS-VBR) encoding, to produce the highest quality images for D-Cinema, with file sizes between 30 and 50 percent smaller than competing systems. The DTS Digital Cinema Encoder was developed in conjunction with Dr. Michael Marcellin, a leading expert in JPEG2000 image coding technologies and a key advisor in developing the DCI (Digital Cinema Initiatives, LLC) standards for D-Cinema, and signals the entry of DTS as a key provider of premium technology and product solutions supporting the motion picture industry's transition to Digital Cinema. The advantage of the DTS Digital Cinema Encoder lies in its ability to achieve any desired bit rate or distribution file size, while maintaining constant image quality compliant with DCI standards. Encodes are optimized through the use of a DTS-VBR implementation of JPEG2000, which makes the most efficient use of the available bit budget, and produces the highest quality images for D-Cinema exhibition. Complex or difficult frames are encoded with a higher bit rate, and easy frames are encoded at a lower bit rate to maintain quality, optimizing the image quality of the entire motion picture or individual reels. By comparison, competing systems employ Constant Bit Rate encoding (CBR), simply assigning a fixed maximum bit rate for each frame, often with mixed results, particularly in frames containing complex moving images. As D-Cinema exhibition expands, duplication time and distribution costs will become an important factor in its commercial success. According to Dr. Marcellin: "Recent tests of the DTS Digital Cinema Encoder were conducted to compare the encoding quality of a digital cinema print using CBR encoding and VBR encoding. Results using Peak Signal to Noise Ratio measurements confirmed that a digital film encoded at 150 Mbps using VBR encoding, produced the same quality as a digital film encoded at 250 Mbps using CBR encoding. Further tests also showed that the VBR could be reduced still further while maintaining the highest quality images. VBR encoding also exhibits excellent temporal rate control (motion sampling rate), with no image lag or flicker, which is essential for films that contain significant motion, such as fast action or sports. CBR encoding has virtually no temporal rate control for film frames with motion, resulting in possible image distortion." The DTS Digital Cinema Encoder also provides efficient encoding of extra materials, such as replacement frames or watermarked frames. It supports the DCI requirement of 2k and 4k resolutions, and is scalable for higher or lower resolutions. The encoder is available in two configurations: The primary offering is a turn-key hardware solution, and DTS also offers custom software installation. In recent demonstrations, the image quality produced by the new Digital Cinema Encoder was confirmed: "The DTS Digital Cinema Encoder was recently used to demonstrate Constant Quality Variable Bit Rate encoding to the Hollywood community with impressive results,? said Don Bird, Senior Vice President, Cinema Division at DTS. ?This is an exciting time in the film industry and DTS is proud to be creating tools that make D-Cinema production better and easier, ultimately enhancing the cinema experience."

Read More: