DTS 96/24 and DTS-ES Software Encoders

Agoura Hills, CA - October 6, 2004 - DTS (Digital Theater Systems, Inc.) (NASDAQ: DTSI) announces the availability of two new DTS pro audio software encoders: the Pro Series 6.1 Surround Encoder, which is the affordable stand-alone solution for the Mac or PC, and the DTS Pro Series Network Encoder, which is a cost-effective networked solution for large post-production facilities based on the Apple's Xserve RAID storage system. Both encoders can be used to create multi-channel DTS soundtracks for DVD-Audio, DVD-Video and 5.1 CD titles.

The first commercially-available solutions for creating high-quality 96kHz and 6.1-channel discrete DTS-ES soundtracks, the DTS Pro Series encoders provide the only 96kHz multi-channel audio solution for video content on DVD-Audio and DVD-Video discs. Presenting solutions for the different workflows utilized in most pro-audio facilities worldwide, the encoders will be available through the DTS' international distribution network beginning October 2004 ( www.dtsonline.com/pro-audio/find/) The encoders were initially announced earlier this year.

Renowned musician Peter Gabriel is the first person to use the Pro Series 6.1 Surround Encoder on a commercial project. At his Real World Studios, he is currently using it to encode the DVD music title Play: The Videos, which is scheduled to be released by Warner Vision International on DVD-Video on October 26, 2004. All of the 5.1 surround tracks on Play will be encoded in DTS 96/24.

For more information, please visit www.petergabriel.com .

"Catering to the increasing demand for DTS from content owners worldwide, the new DTS Pro Series encoders will allow the pro audio community to easily and affordably create high-quality DTS soundtracks," said Brian Towne, Vice President of the Consumer and Pro Audio Division at DTS. "It will make DTS part of the staple service offering of many more DVD production houses."

Both the DTS Pro Series 6.1 Surround Encoder and the DTS Pro Series Network Encoder offer a full suite of DTS technologies, including: DTS Digital Surround for 5.1-channel surround sound DTS-ES 6.1 discrete for enhanced surround precision - only DTS delivers a discrete center surround channel DTS 96/24 for the highest resolution DVD-Video with 5.1 discrete channels

The encoders also offer a range of encoding options:

44.1k for use on CDs

88.2k for even higher quality on CDs

48k for DVD-Video

96k for the highest resolution on DVD-Video

764kbps bit rate for the best balance of quality when optimizing bit budget 1.5Mbps bit rate when the goal is highest quality possible 1.235Mbps for multi-channel music CDs

While the DTS Pro Series 6.1 Surround Encoder is a stand-alone encoder for both Mac and PC, the DTS Pro Series Network Encoder for multi-user facilities delivers seamless integration with the Xserve RAID. Developed as an application for multiple workstations, the Network Encoder will allow up to 99 users on either Mac or Windows workstations to address the DTS encoding facility on the Xserve.

About DTS Consumer / Pro Audio Division

DTS is an innovator in the development of multi-channel digital sound solutions for the consumer electronics and professional audio markets, including home A/V, video games and consoles, broadcast, personal computers and mobile and portable audio systems. Today, every major consumer electronics manufacturer supports DTS technology. Addressing the demand for DTS-encoded content worldwide, DTS also offers hardware and software encoders to the professional audio communities, allowing them to produce DTS audio content directly.

About DTS

DTS (Digital Theater Systems, 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 processors, and there are 280 million 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 5.1 Music Discs, DVD-Video, DVD-Audio and DVD-ROM software. Additionally, DTS is featured on more than 22,000 motion picture screens worldwide. Founded in 1993, DTS is headquartered in Agoura Hills, California and has offices in the United Kingdom, Japan and China. For further information, please visit www.dtsonline.com .

DTS and DTS-ES are trademarks of Digital Theater Systems, Inc.