DTS Accelerates Entry Into The D-cinema Market; Company Announces Exclusive Licensing Agreement With Avica Technology Corporation

August 14, 2006

DTS, Inc. (Nasdaq:DTSI) today announced that it has entered into an exclusive licensing agreement with Avica Technology Corporation, a recognized name in the digital cinema market. The license agreement provides DTS exclusive global rights to exploit Avica's suite of technologies, products and services. This agreement leverages existing DTS technologies, including the recently completed acquisition of the Digital Booking Systems software, and positions DTS to compete more aggressively in the emerging D-cinema market. Under the terms of the transaction, DTS also has the exclusive option to acquire the assets of Avica. "This licensing agreement with Avica significantly accelerates our entry into the digital cinema market and we are very optimistic that we will play an important role in the industry's transition toward the complete digital delivery of entertainment content," commented Jon Kirchner, president and CEO of DTS. "The addition of Avica's technology and product suite to our existing cinema and digital images offerings creates a unique and compelling solution for content creators, distributors and exhibitors as the world broadly adopts digital content distribution and exhibition platforms. "Avica is delighted to be supporting our new partner in digital cinema and we look forward to working closely with the DTS team to develop this emerging market," said Nicholas Clay, chairman and CEO of Avica Technology Corporation. About DTS DTS, Inc. (Nasdaq: DTSI) is a digital technology company dedicated to delivering the ultimate entertainment experience. DTS decoders are in virtually every major brand of 5.1-channel surround processor, and there are hundreds of millions of DTS-licensed consumer electronics products available worldwide. A pioneer in multi-channel audio, DTS technology is in home theatre, car audio, PC and game console products, as well as DVD-Video, Surround Music and DVD-ROM software. DTS audio products are featured on more than 27,000 motion picture screens worldwide. Additionally, DTS provides imaging technology and services for the motion picture industry; DTS Digital Images, formerly Lowry Digital Images, is a wholly-owned subsidiary of DTS and an industry leader in image restoration and enhancement. Founded in 1993, DTS is headquartered in Agoura Hills, California and has offices in the United Kingdom, France, Italy, Canada, Hong Kong, Japan and China. For further information, please visit www.dts.com. DTS is a registered trademark of DTS, Inc. About Avica Avica is a leading provider of technologies and services for Digital Cinema post-production, distribution and exhibition. Avica's FilmStore(TM) family of products handles content delivery and presentation for distribution networks; including encoding and encryption, packaging and distribution, security and all aspects of theatre management and screening. For additional information on Avica and its products visit http://www.avicatech.com.

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