Dolby Vision Available in First Quarter Calendar 2009

LAS VEGAS--(BUSINESS WIRE)--Dolby Laboratories, Inc. (NYSE:DLB) announced today that Dolby^® Vision, part of its suite of High Dynamic Range (HDR) technologies, will be available in Q1 2009. In addition, the company is displaying a SIM2 prototype LCD display that features the Dolby Vision reference design at its CES booth.

“With Dolby Vision, next-generation LCD manufacturers will be able to provide outstanding contrast combined with crisp brightness to deliver picture quality that can achieve real-world visual perception of depth, detail, and color”

“With Dolby Vision, next-generation LCD manufacturers will be able to provide outstanding contrast combined with crisp brightness to deliver picture quality that can achieve real-world visual perception of depth, detail, and color,” said Bharath Rajagopalan, Director, HDR Marketing, Dolby Laboratories. “The SIM2 LCD prototype display leverages Dolby Vision to manage LED local dimming technology and shows what manufacturers can achieve by implementing this technology.”

Dolby Vision features a proprietary algorithm that manages LEDs behind the liquid crystal panel. Each LED is controlled individually in concert with the image on display. By selectively turning off areas of the backlight behind black areas in scenes, Dolby Vision allows the area to become truly black. Dolby Vision also has the ability to selectively brighten areas of the backlight behind bright areas allowing them to truly radiate.

Dolby worked with SIM2 to develop an HDR-enabled LCD flat-screen prototype display that features the Dolby Vision reference design. Using Dolby Vision, SIM2 created a ground-breaking prototype capable of delivering spectacular images. The prototype display uses a Xilinx Virtex^® Field Programmable Gate Array (FPGA) chipset approved by Dolby. The Xilinx^® FPGA chipset is available today enabling fast time to market for displays using Dolby Vision’s complex HDR algorithms.

“Dolby Vision delivers images so realistic that the display becomes a window into the world,” said Domenico Toffoli, Director, Professional Systems Business Unit, SIM2. “The SIM2 prototype display is truly a benchmark for what manufacturers can achieve with the HDR technology Dolby has developed.”

Dolby will showcase the SIM2 prototype display for Dolby Vision in booth number 20901 during the 2009 International CES^® Show in Last Vegas, Nevada.

About Dolby Laboratories

Dolby Laboratories (NYSE:DLB) is the global leader in technologies that are essential elements in the best entertainment experiences. Founded in 1965 and best known for high-quality audio and surround sound, Dolby creates innovations that enrich entertainment at the movies, at home, or on the go. Visit www.dolby.com for more information.

Certain statements in this press release, including statements regarding the performance, features, and capabilities of Dolby Vision and Dolby HDR technologies; the potential benefits that may be derived from Dolby Vision and Dolby HDR technologies; the anticipated availability of Dolby Vision in the first quarter of calendar 2009; and the delivery of dramatic improvements of LCD picture quality by Dolby Vision and Dolby HDR technologies are “forward-looking statements” that are subject to risks and uncertainties. These forward-looking statements are based on management’s current expectations. The following important factors, without limitation, could cause actual results to differ materially from those in the forward-looking statements: risks that Dolby Vision and Dolby HDR technologies may not perform as anticipated or become commercially available as currently anticipated; risks associated with building market acceptance of and demand for Dolby Vision and Dolby HDR technologies by manufacturers, content creators, and consumers; competition risks for digital and video technologies; rapid changes in technical requirements for manufacturing technologies and entertainment technologies; risks associated with the health of the television industry in general; risks associated with developing, maintaining, and strengthening relationships with industry participants; and other risks detailed in Dolby’s Securities and Exchange Commission filings and reports, including the risks identified under the section captioned “Risk Factors” in its most recent Periodic Report on Form 10-Q or 10-K. Dolby disclaims any obligation to update information contained in these forward-looking statements, whether as a result of new information, future events, or otherwise.

Dolby and the double-D symbol are registered trademarks of Dolby Laboratories. S09/20778