Coding Technologies And DTS To Enter The Chinese Broadcast Market With MPEG-4 AacPlus/DTS Transcoding Solution; Cooperation Agreement Signed To Extend Market Territory

August 30, 2006

Coding Technologies and DTS signed an agreement to extend their existing cooperation to the territory of China. Under the agreement, the two companies commit to jointly market their MPEG-4 aacPlus(TM)/DTS transcoding solution to the Chinese broadcast market, making the achievements of their intense collaboration covering Northern America and Europe also available to the Chinese industry. The MPEG-4 aacPlus/DTS transcoding solution enables broadcasters to most efficiently utilize the available transmission spectrum and provide highest audio quality at the same time. The solution combines aacPlus as the most efficient audio codec worldwide with DTS, the widely recognized high quality home theater surround sound format, guaranteeing instant access to the installed base of DTS enabled A/V receivers in homes. The cooperation allows Coding Technologies and DTS to offer a competitive, high quality end-to-end audio solution for digital broadcasting, including the full application chain from contribution, over distribution to emission. The complete range of products from broadcast-grade multi-channel encoders to transcoding chips for consumer set-top-boxes supporting HD and SD resolutions will be available within this year. The aacPlus audio codec is already standardized in many international broadcasting standards such as DVB (Digital Video Broadcasting), DMB (Digital Multimedia Broadcasting), and DRM (Digital Radio Mondiale). The superior performance of aacPlus has been proven in many independent tests conducted by the EBU (European Broadcasting Union), MPEG (Moving Pictures Experts Groups), or the IRT (Institut fur Rundfunktechnik). Specifically for 5.1 surround sound, 160 kbps aacPlus provides the same audio quality as 384 kbps transmissions of its competitive solutions. "The Chinese broadcast market is in the comfortable situation of being able to freely choose the best existing technology without legacy birthright obligations," says Stefan Meltzer, vice president business development at Coding Technologies. "We believe that this will lead to one of the most advanced digital broadcasting systems in the world. Together with our partner DTS, we are proud to deliver to these needs, to which we can respond even better from Coding Technologies' recently opened representative office in Beijing." "It is exciting to introduce our full end-to-end solution to the Chinese market, which will not only be strongly competitive but also offers huge opportunities. Competition is the main driver for any market place, and DTS is well prepared to bringing surround sound to digital broadcasting in China, for the benefit of content providers, broadcasters, and consumers alike," comments Brian Towne, senior vice president, consumer/pro division at DTS, Inc. The aacPlus/DTS transcoding solution will be demonstrated at the DTS stand # 2.008, hall 2, at BIRTV 2006, Beijing. About Coding Technologies Coding Technologies provides the best audio compression for mobile, broadcasting, and Internet. SBR(R) (Spectral Band Replication) from Coding Technologies is a backward and forward compatible method to enhance the efficiency of any audio codec; putting the "PRO" in mp3PRO and the "Plus" in aacPlus. Parametric Stereo from Coding Technologies and Philips again significantly increases the efficiency of audio codecs for stereo signals at low bit rates. Products from Coding Technologies are fundamental enablers of open standards such as 3GPP, 3GPP2, MPEG, DVB, Digital Radio Mondiale, HD Radio, and the DVD Forum. Coding Technologies is a privately held company with offices in Sweden, Germany, the USA, and China. Founded in 1997 in Stockholm, the company later merged with a spin-off of the renowned Fraunhofer Institute in Germany, the inventor of MP3. Coding Technologies' customers include America Online, EMP, iBiquity Digital, KDDI, O2, Nokia, Orange, RealNetworks, SK Telecom, Sprint, T-Mobile, Thomson, Texas Instruments, Vodafone, and XM Satellite Radio. For more information, visit http://www.codingtechnologies.com. 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 http://www.dts.com.

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