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At CES, Audio Industry Trendsetter Presents the First Comprehensive, Flexible, Affordable Surround-Sound Technology Suite for In-Car Entertainment

``People have become accustomed to the involving and natural experience of surround sound in movie theatres and in their homes. The next logical environment for surround entertainment is the car,'' said Brent Butterworth, Director of Consumer Technology Marketing, Dolby Laboratories. ``As the company that defined the surround-sound experience, Dolby is now putting surround sound in motion, with a range of technologies to offer the highest-quality surround sound ever heard in the car.''

Dolby's comprehensive technology package enables licensed manufacturers to create everything from high-end, mobile concert hall experiences to affordable surround-sound solutions that enhance the in-car entertainment experience for drivers, front-seat passengers, and rear-seat passengers alike. ``Only Dolby, the pioneer and industry leader in surround-sound technology, is able to deliver a complete range of solutions to suit any mobile surround sound application. Dolby in-car sound is taking mobile entertainment to the next level,'' said Bill Jasper, President, Dolby Laboratories.

    Dolby's In-Car Entertainment Technologies Deliver True Surround
    Sound

Surround sound adds depth and realism to any audio experience -- music, movies, television, games -- by enveloping the listener in a multidimensional soundfield. The current standard for surround sound is 5.1 channels: left, center, and right speakers in front of the listener; left surround and right surround speakers behind; and a subwoofer (referred to as the ``.1'') to provide the low-frequency sounds. Once one experiences the excitement of music and movies reproduced in surround sound, there is simply no going back to conventional stereo again.

Dolby technologies provide car audio and other mobile multimedia manufacturers with tremendous flexibility to create a wide range of in-car surround-sound products for consumers. The primary Dolby in-car technologies are as follows:

• Dolby Digital: The state-of-the-art 5.1-channel surround format experienced in the cinema and in DVDs, high-definition television (HDTV), and games. In the car, Dolby Digital can be incorporated into rear-seat entertainment systems featuring DVD players or into mobile theater surround processors.
• Dolby Surround Pro Logic II: The most natural-sounding matrix decoding technology available, Pro Logic II converts two-channel stereo into realistic, natural surround sound. It can be incorporated into car sound systems to transform conventional stereo into an exciting new listening experience. Pro Logic II works with any stereo source, including CD, FM radio, cassettes, XM or Sirius satellite radio, and MP3 files.
• Dolby Headphone: The value-added solution for providing surround sound using any conventional pair of headphones. In the car, Dolby Headphone technology enables rear-seat passengers to enjoy their favorite entertainment without disturbing the driver. Dolby Headphone accurately simulates the experience of hearing a 5.1-channel speaker system properly set up in a listening room. The annoying, fatiguing ``in the head'' effect you normally get with headphones is gone. Dolby Headphone works with any set of headphones, but it's particularly appropriate for use with wireless headphones, to complete the illusion that the listener is hearing a full speaker system.
• MLP Lossless(TM): MLP Lossless is the core audio technology behind DVD-Audio, the highest-quality audio format available today. MLP Lossless squeezes six channels of 24-bit/96 kHz surround sound onto a DVD-Audio disc. Not only is 24/96 MLP Lossless far better than CD quality, it lets the listener hear exactly what was recorded in the studio, with bit-for-bit accuracy.

Dolby Addresses the Unique Challenges of the Car

Until recently, multispeaker car audio systems typically provided two-channel stereo sound, with a fader control simply adjusting the front-to-back balance.

In 1997, Dolby was the first to get surround sound into the OEM market with the Volvo C70 sports coupe featuring a factory-installed audio system featuring Dolby Surround Pro Logic. (Volvo recently received a ``Best of the Best 2001'' rating in the December 2001 Robb Report for its premium audio systems.) An essential ingredient to automotive surround systems is the center speaker. Over the years, Dolby has actively encouraged auto manufacturers to overcome the difficulties of installing a center speaker, and, in fact, an increasing number of cars -- including models from Saab, Audi, BMW, Chrysler, Lexus, Toyota, Cadillac, and Mitsubishi -- now come equipped with a center speaker. In addition, most manufacturers of aftermarket surround processors offer a variety of center-speaker options in order to realize the advantages that multichannel surround sound can provide.

Dolby Technologies Available from Licensees

Licensees incorporating Dolby technologies into car surround processors include Alpine, Clarion, Kenwood, Matsushita (Panasonic), Mitsubishi (Diatone), Fujitsu Ten (Eclipse), Pioneer, and Rockford-Fosgate. Among the new class of products incorporating Dolby Surround Pro Logic II are Alpine's PXA-H700 integrated surround processor and Clarion's DX-Z925 CD-receiver head unit.

In addition, several semiconductor manufacturers now offer devices that incorporate Pro Logic II, Dolby Headphone, and/or Dolby Digital technologies. These companies include Analog Devices, Asahi Kasei Microsystems (AKM), Cirrus Logic, Motorola, Sanyo, Sharp, Texas Instruments, Yamaha, and Zoran.

Consumers can also expect auto manufacturers to offer new models with factory-installed systems featuring Dolby technologies within the next year.

Dolby's BMW X5 demo car will be on display throughout the CES show for members of the industry and public to view and listen to demonstrations of Pro Logic II. Companies contributing products to Dolby's demo car include Alpine, Stinger (AAMPro), MB Quart (a division of Rockford-Fosgate), Cascade Audio Engineering (CAE), and ACE wheels, as well as the custom installation by California Concepts.

Dolby will also demonstrate Dolby Headphone in a special demo area at its CES booth, featuring custom-equipped chairs (courtesy of Clark Synthesis Sensation) for added bass effect.

About Dolby Laboratories

Dolby Laboratories is the developer of signal processing systems used worldwide in applications that include motion picture sound, consumer entertainment products and media, broadcasting and music recording. Based in San Francisco with European headquarters in England, the privately held company also has offices in New York, Los Angeles, Shanghai, Beijing and Tokyo. For more information about Dolby Laboratories or Dolby technologies, please visit www.dolby.com.

NOTE TO EDITORS: A press kit is available on Dolby's website at www.dolby.com, as is the archived webcast of the January 8 CES press conference.

Dolby, Pro Logic, and the double-D symbol are registered trademarks of Dolby Laboratories. MLP Lossless and Surround in Motion are trademarks of Dolby Laboratories. All other trademarks remain the property of their respective owners.

Contact:

     Dolby Laboratories
     Jim Arnold, 415/645-5116
     jja@dolby.com
      or
     Martell Communications
     Cynthia Hoye, 978/266-0357
     choye@martellpr.com