Harmonic To Add Support For Dolby Digital Plus; Companies To Combine Expertise In Advanced Video And Audio Compression Solutions

May 1, 2006

Dolby Laboratories, Inc. (NYSE:DLB) today announced that Harmonic Inc. (Nasdaq:HLIT), a leading provider of digital video, broadband networking, and IP-delivery systems, plans to support Dolby(R) Digital Plus, Dolby's next-generation audio technology for high-definition programming, in Harmonic's future products. Harmonic and Dolby are closely collaborating on cost-effective, integrated solutions that would streamline the audio/video service provider's delivery architecture with several key advanced audio features. "Our industry leading DiviCom(R) HD and SD encoders, the most widely deployed in their categories, set the benchmark for innovation, integration, performance, and video quality," said Arnaud Perrier, Senior Product Marketing Manager for Advanced and HD Encoding at Harmonic Inc. "As we look at the needs of the broadcast industry, and particularly considering the move to an all-HD world, audio plays an important role in the overall TV experience. Dolby Digital Plus is a key audio technology that can improve the viewer's listening experience while helping to reduce overall bandwidth utilization. As a result, we are planning to integrate Dolby Digital Plus into our future high-definition products." Dolby Digital Plus offers the same quality available today with Dolby Digital but requires less bandwidth while maintaining compatibility with millions of existing Dolby Digital receivers. Built on Dolby Digital, the sound of DVD and HD broadcasts worldwide, Dolby Digital Plus was designed for the delivery formats of the future, including H.264 and VC-1. All Dolby Digital Plus decoders provide an output stream fully compatible with all current A/V receivers. "Harmonic and Dolby share a common goal of providing broadcasters with the technologies and products that ease the delivery and enhance the quality of content provided to viewers," said Jeff Nelson, Broadcast Channel Manager, Dolby Laboratories. "With next-generation systems such as IPTV, Dolby Digital Plus offers broadcasters the flexibility to deliver higher quality audio at a reduced data rate." Dolby is demonstrating Dolby Digital Plus at the National Association of Broadcasters Conference and Expo in its booth (SU2923) April 24-27 in Las Vegas. About Dolby Laboratories Dolby Laboratories develops and delivers products and technologies that make the entertainment experience more realistic and immersive. For 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 technologies, please visit http://www.dolby.com.

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