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Dolby Unveils ``Dolby in PC'' Initiative

Dolby's Audio Technologies Essential to PC's Evolution Into a Home Entertainment Gateway

SAN FRANCISCO--(BUSINESS WIRE)--Oct. 29, 2002--Dolby Laboratories announced its new "Dolby in PC" initiative, a comprehensive overview of how Dolby audio technologies positively affect today's evolution of the personal computer into a home entertainment gateway. As PCs continue to develop as digital entertainment platforms, Dolby Laboratories, the world leader in multichannel audio technologies, is committed to providing PC users the same level of high-quality Dolby surround sound that they now expect from more traditional entertainment-oriented consumer electronics products.

The "Dolby in PC" initiative is part of Dolby's strategy to expand its presence in the PC market. The company has been working closely with its licensees and key technology partners on a number of strategic projects, including the NVIDIA Sound Storm program and new premium sound cards from Creative Labs. Dolby has also teamed with its licensees (including CyberLink, InterVideo, and NVIDIA) and with Microsoft to ensure that consumers can access all the features of their DVD player from the new Microsoft Windows Media Player 9 interface.

"Consistent with our efforts in cinema, home theater, and digital television, Dolby technologies are defining new standards of multichannel audio quality for the PC," said Bill Jasper, president of Dolby Laboratories. "Quite simply, if you want a richer, fuller, more enveloping PC entertainment experience, you need great sound, and that means Dolby technologies."

Dolby Technologies Make PC Entertainment Come Alive

Dolby audio technologies are found in more than 100 million PCs around the world, enriching a host of entertainment experiences, including watching DVDs or listening to stereo content via CDs and MP3 files. Leading-edge PC licensees and manufacturers delivering products that incorporate Dolby technologies include Apple Computer, ATI, Creative Labs, CyberLink, Dell, Fujitsu, Fujitsu-Siemens, Gateway, HP, IBM, InterVideo, MedioStream, Microsoft, NEC, NVIDIA, Packard-Bell, Sonic Solutions, Sony, Sharp, and Toshiba.

"Dolby audio technologies are an essential ingredient of a great entertainment experience, whether people are going to the cinema, watching movies on DVD or digital TV, listening to music, or playing video games," said Ron Vitale, director of consumer marketing for Dolby Laboratories. "Dolby technologies are increasingly incorporated in products that people use every day, including home theater systems, game consoles (Microsoft's Xbox, Nintendo's GameCube, and Sony's PlayStation 2), PCs, TVs, DVD players, and cassette decks."

A growing trend is the use of PCs for personal entertainment: watching DVDs, listening to music, or playing games. Two Dolby technologies for the PC -- Dolby Headphone and the newest innovation, Dolby Virtual Speaker (see press release dated October 29, 2002), -- further enhance PC entertainment in situations where multiple-speaker setups may not be practical. Dolby Headphone re-creates the excitement of a multichannel surround sound environment through a conventional pair of stereo headphones, and Dolby Virtual Speaker provides believable, realistic 5.1 surround sound from just two speakers.

Why Dolby Technologies Matter

Dolby sound technologies provide a fuller, richer, more involving entertainment experience. Whether users are listening to music, watching movies or TV shows, playing games or creating their own DVD movie content, the personal computer has emerged as a new frontier for Dolby technologies.

The presence of the Dolby logo and Dolby technologies in entertainment-based products is an assurance of a high-quality audio experience. For example, Dolby Digital audio delivers the same thrilling, high-quality surround experience consumers have come to expect from home theater and movie theater systems.

Dolby Laboratories is involved throughout the entire production chain of entertainment products, from the creation of the sound by the original artists to the delivery of sound to the listener's ear. Globally, Dolby technologies have been adopted as the primary audio standard for DVD players, digital television, digital cable, and satellite broadcast, and the de facto multichannel audio standard for PC and console games. Dolby has entered into an agreement with Microsoft to enable access to Dolby audio technology in the PC's software DVD players within the Windows XP Media Center Edition and Windows Media Player 9.

"Consumers have come to expect surround sound from electronic entertainment, whether it's at the movies, in video arcades or from their own home theaters and game consoles. They'll also want the same immersive audio experience from PC-based entertainment," said Bill Ablondi, an analyst affiliated with the Dallas research firm Parks Associates. "Dolby is already well known for multichannel audio. I expect that consumers will embrace Dolby audio for the PC just as they have in other areas of electronic entertainment."

Dolby technologies also play an important role in home networking, with high compression solutions and a protocol-neutral solution that make it easy to use Dolby Digital technology to transport audio seamlessly from one room of the house to another, including over wireless networks, which are typically characterized by limited bandwidth and therefore require a highly efficient audio transmission system.

With home networking solutions becoming more prevalent and the PC moving beyond a productivity tool to more of an entertainment gateway, Dolby audio technologies will become the preferred method to deliver high-quality audio throughout the home. The inclusion of Dolby audio technologies in the PC provides three compelling benefits: quality, compatibility, and efficiency.

Dolby helps ensure compatibility with content and existing entertainment devices already present in the home. Dolby Digital audio coding is already prevalent in all digital video entertainment media: DVD, DTV, digital cable, and satellite broadcasting. This media can be integrated seamlessly onto PCs and shared across home networks, thanks to Dolby's audio compression technology. There is no need to convert audio from one format to another, regardless of the application.

Dolby's audio coding technologies are highly efficient, enabling consumers to store and access entertainment content in a manner that would otherwise be impossible. For example, as a result of its high efficiency, Dolby Digital audio transmitted over a home network leaves ample bandwidth even for high-definition video. It is this same efficiency that has propelled Dolby's adoption throughout the cinema and broadcast markets, as well as in consumer products such as DVD-Video.

In all areas of PC entertainment -- music, movies, gaming, TV, personal video recording (PVR), and content creation -- Dolby technologies contribute in an essential way to the overall experience. Here is an overview of Dolby's role in each of these entertainment areas:

Dolby Technologies in Music

        Dolby sound technologies create a rich, full, enveloping music
        experience. Today, Dolby technologies enhance music heard on
        compact disc (using Dolby Pro Logic(R) II) or DVD-Audio (using
        MLP Lossless or Dolby(R) Digital).
        For CD or MP3 music playback, a software DVD player that
        includes Dolby Pro Logic II (such as InterVideo's WinDVD 4
        Plus or CyberLink's PowerDVD) is required, and the computer
        must be hooked up to a surround speaker system.
        Creative Labs and Dolby have been working together closely to
        bring audio innovations to the PC market. The most recent
        example of these efforts is Creative Lab's Sound Blaster
        Audigy 2 sound card, which uses MLP Lossless technology
        licensed by Dolby to bring advanced resolution DVD-Audio
        playback to the PC platform. The Sound Blaster Audigy 2 also
        supports Dolby Digital Surround EX(TM), which delivers a
        cinematic experience. Creative Labs is the first company to
        license MLP Lossless technology from Dolby for the PC. For
        nearly two years, Creative Labs has been deploying Dolby
        Digital worldwide in all of its premier sound card offerings,
        commencing with the Sound Blaster Live 5.1, and continuing
        with all Sound Blaster Audigy models. (see related press
        release dated October 29, 2002).
        For streaming music or audio/visual content over the Internet,
        Apple Computer's new QuickTime 6 includes MPEG-4 AAC
        technology licensed by Dolby.

Dolby Technologies in Movies

        Dolby technologies bring the magic of Hollywood to the PC
        entertainment experience. Every DVD player includes Dolby
        Digital technology. Dolby Digital Surround EX, which adds a
        center rear speaker, and Pro Logic II can also be incorporated
        into PC-based products, providing a variety of surround sound
        options and improving performance quality.
        For those who watch movies on a PC with headphones or with
        only two speakers, Dolby Headphone and Dolby Virtual Speaker
        technologies can greatly enhance the value of the
        entertainment experience. Many leading PC manufacturers are
        incorporating these Dolby technologies into their product
        lines. Consumers can also upgrade their PC's existing software
        DVD player to include these Dolby technologies by purchasing
        upgrades from Dolby licensees CyberLink and InterVideo.

Dolby Technologies in Gaming

        Playing games with Dolby technologies is like stepping into
        the action, making the experience more lifelike, authentic,
        and involving. Blizzard Entertainment's Warcraft III, one of
        the best-selling PC games this year, features Dolby Surround
        technology. The recently released Unreal Tournament 2003 by
        Epic Games and America's Army, developed by the US military,
        both support stunning Dolby Digital 5.1 sound on PCs equipped
        with interactive Dolby Digital encoding. Dolby is working
        closely with game developers and publishers to bring more PC
        game titles out with Dolby Surround and Dolby Digital 5.1
        encoding.
        The NVIDIA nForce2 MCP Platform Processor provides an
        integrated audio processing unit and real-time Dolby Digital
        encoder, making it one of the most advanced components of
        audio hardware available for PC games. Leading PC OEMs and
        motherboard manufacturers have begun to adopt NVIDIA's new
        nForce2 processors into their product lines.

Dolby Technology in TV/Personal Video Recorder Applications

        Dolby Digital is the most widely accepted and deployed method
        for delivering multichannel television audio to audiences
        around the world. In the United States, Dolby Digital is the
        mandated standard for digital broadcast TV (ATSC), the de
        facto standard for digital cable, and for direct broadcast
        satellite services. DirecTV and EchoStar both rely on Dolby
        Digital for multichannel audio on their services. Premium
        channels such as HBO, Showtime, and STARZ! make Dolby Digital
        available 24 hours a day. HBO's most popular current program,
        The Sopranos, is broadcast in Dolby Digital 5.1. As the PVR is
        an extension of the TV, Dolby anticipates consumers will
        demand multichannel audio capabilities from their PC's PVR
        solutions.

Dolby Technology in Content Creation

        Increasingly, video enthusiasts are using their PCs and
        digital video recorders to create and edit their own DVD
        movies. Dolby technologies can significantly enhance these
        content creation activities.
        With DVD burner hardware and software, and Dolby Digital
        encoder technology, enthusiasts will be able to edit, produce,
        and play back their own movie creations, replete with
        soundtrack and audio effects in full Dolby Digital sound.
        Furthermore, as a result of the efficiency of Dolby Digital
        encoding technology, PC users can save more (or higher
        quality) video onto a DVD. MedioStream's neoDVD is one of the
        first consumer DVD authoring software packages that offers
        Dolby Digital audio support. Other Dolby licensees providing
        DVD authoring solutions include Apple Computer, Sonic
        Solutions, and Sony. Once a DVD has been created using Dolby
        Digital encoding technology, the DVD can be played back on any
        DVD-Video player including tabletop, portable, and PC DVD
        players.

Enhanced Marketing Effort Behind "Dolby in PC"

As part of its new "Dolby in PC" initiative, Dolby has strengthened its marketing organization by adding staff with extensive marketing experience in the PC industry. Through its new product development and enhanced marketing efforts, Dolby will demonstrate its intent to further assist licensees in building consumer knowledge of and preference for products that include Dolby technologies. (Please see related personnel release, dated October 29, 2002.)

Licensee Quotes in Support of "Dolby in PC"

Apple Computer

"The AAC codec adds a whole new level of dynamic range to the kind of audio that we want with our files over the Internet," said Frank Casanova II, director of QuickTime Marketing, Apple Computer. (Dolby is the licensor of AAC technology)

CyberLink

"By using advanced Dolby technologies such as Dolby Headphone, Dolby Digital, and Dolby Surround, CyberLink PowerDVD has been able to continuously deliver superior audio playback and ensure the most rich DVD movie experience on the PC for our customers, through two-channel or multichannel sound systems," said Alice H. Chang, CEO of CyberLink Corp.

Fujitsu

"The addition of Dolby's audio technology in our LifeBook notebook PCs helps bring multimedia to life by providing a richer experience for the user," said Sara Nelson, vice president of marketing, Fujitsu PC Corporation. "It's important for users to be able to easily enjoy movies on their LifeBook whether they are on an airplane or in their home. Dolby helps make that happen."

InterVideo

"InterVideo has integrated Dolby's Virtual Speaker technology into our latest version of WinDVD, the world's most popular DVD-playing software," said Steve Ro, founder and CEO of InterVideo. "The simple fact is that most PCs ship with only two speakers and by adding Virtual Speaker technology to WinDVD, these consumers get a natural surround sound when watching DVDs. It sounds incredible-you really have to hear it to believe it."

MedioStream

"MedioStream is very pleased to announce that our flagship product, neoDVD, is the only PC-based consumer DVD authoring software that offers Dolby Digital audio support. With Dolby Digital audio compression technology, our customers can now save more DVD video onto a disc," said Gordon Doran, MedioStream vice president of Sales and Marketing. "It also means that MedioStream software is the only software that is compatible with DVD+RW set-top recorders that use Dolby audio, empowering our customers to take advantage of the digital convergence in consumer electronics devices, such as the PC, TV and set-top players."

Microsoft

"Dolby sound technologies are an important part of the entertainment experiences that Windows XP Media Center Edition offers," said Kevin Eagan, general manager of the Windows eHome Division, Microsoft Corp. "With Dolby's reputation in home theater and personal surround sound systems, Microsoft is pleased to enable easy access to Dolby sound technologies on the PC through Windows XP Media Center Edition."

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, Hong Kong, Shanghai, Beijing, and Tokyo. For more information about Dolby Laboratories or Dolby technologies, please visit www.dolby.com.

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


Contact:

     Dolby Laboratories, Inc.
     Jim Arnold, 415/645-5116
     jja@dolby.com
     or
     Martell Communications
     Colleen Martell, 408/374-7420
     cmartell@martellpr.com

Source: Dolby Laboratories, Inc.

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