DTS Accelerates Entry into the D-cinema Market; Company Announces Exclusive Licensing Agreement with Avica Technology Corporation

Business Wire, August 9, 2006

AGOURA HILLS, Calif. -- 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.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks, uncertainties, assumptions and other factors which, if they do not materialize or prove correct, could cause DTS' results to differ materially from historical results or those expressed or implied by such forward-looking statements. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including statements containing the words "planned," "expects," "believes," "strategy," "opportunity," "anticipates" and similar words. These statements may include, among others, plans, strategies and objectives of management for future operations; any statements regarding proposed new products, services or developments; any statements regarding future economic conditions or financial or operating performance; statements of belief and any statements of assumptions underlying any of the foregoing. The potential risks and uncertainties that could cause actual growth and results to differ materially include, but are not limited to, the rapidly changing and competitive nature of the digital audio, consumer electronics and entertainment markets, the company's inclusion in or exclusion from governmental and industry standards, customer acceptance of the company's technology, products, services and pricing, risks related to ownership and enforcement of intellectual property, the continued release and availability of entertainment content containing DTS audio soundtracks, changes in domestic and international market and political conditions, risks related to integrating acquisitions and other risks and uncertainties more fully described in DTS' public filings with the Securities and Exchange Commission, available at www.sec.gov. DTS does not intend to update any forward-looking statement to reflect events or circumstances arising after the date on which it was made.