Exhibitors Worldwide Select Dolby 3D Digital Cinema

A number of key exhibitors will be installing the first Dolby 3D Digital Cinema systems in locations throughout the world, including Carousel Cinemas, Cinema City, Cinetopia, Cobb Theatres, Kerasotes Theatres, Malco Theatres, Marcus Theatres, Maya Cinemas, Megaplex Theatres, Starlight Cinemas, Sundance Cinemas, Warren Theatres, Kinepolis Group of Belgium, and Supercines of Ecuador. Dolby plans to continue installing its solution on additional screens in time for Paramount Pictures’ Beowulf, opening in several territories beginning November 16, 2007.

“With the approaching release of Beowulf, Dolby is committed to installing as many Dolby 3D systems as possible,” said Tim Partridge, Executive Vice President, Products and Technology, Dolby Laboratories. “The response from exhibitors around the world has been very promising. We are delighted that Dolby is offering new technology to theaters that is highly valued by cinemagoers and continues to enhance the moviegoing experience.”

Dolby’s unique 3D solution offers exhibitors an easy-to-implement and cost-effective solution:

• The Dolby 3D technology utilizes standard white screens already in auditoriums, so exhibitors don’t have the added costs nor the image-quality compromise associated with the use of a “silver screen,” delivering a great 3D experience from every seat in the auditorium.
• The Dolby 3D Digital Cinema system supports both 3D and 2D presentations, without the need for dedicated 3D auditoriums, by adding a retractable color filter wheel accessory to the digital projector.
• Exhibitors can move a 3D movie to additional auditoriums equipped with Dolby 3D Digital Cinema systems later in the run using the standard screens.

“The Dolby 3D solution gives Malco flexibility in our theatre to present both 3D and 2D digital movies, and we are thrilled to have it installed in time for Beowulf,” said Mike Thomson, Vice President, Engineering, Malco Theatres. “Malco experienced tremendous success with the Dolby 3D beta trial back in March. We believe that digital 3D movies are going to bring new patrons to our theatres, and we are excited to have Dolby provide us with the latest technology to meet this growing consumer demand.”

The Dolby 3D Digital Light Processing^TM (DLP^®) projector retrofit kit includes an easily installed full-spectrum color filter wheel based on technology licensed from INFITEC that provides realistic color and extremely sharp images. The kit also includes a Dolby DFC100 Digital Filter Controller that automatically synchronizes the filter wheel with 3D digital content as it is projected.

Sold separately, the Dolby 3D glasses are extremely durable, lightweight, high-performance devices designed to be used hundreds of times. Initially, 3D glasses will be reusable, eliminating the need to reorder glasses and minimizing environmental impact. Because they are reusable, the expected per-ticket cost of the glasses is well below the current cost of disposable 3D glasses.

The Dolby 3D Digital Cinema solution is currently shipping.

About Dolby Laboratories

Dolby Laboratories (NYSE:DLB) develops and delivers products and technologies that make the entertainment experience more realistic and immersive. For more than four decades, Dolby has been at the forefront of defining high-quality audio and surround sound in cinema, broadcast, home audio systems, cars, DVDs, headphones, games, televisions, and personal computers. For more information about Dolby Laboratories or Dolby technologies, please visit www.dolby.com.

Certain statements in this press release, including statements regarding the performance, features, reliability, and capabilities of Dolby 3D Digital Cinema; the potential benefits and cost savings that studios, exhibitors, and audiences may derive from Dolby 3D Digital Cinema systems; the number and location of screens that Dolby will install Dolby 3D Digital Systems prior to the release of Beowulf; the expected per-ticket cost of the Dolby 3D glasses; the expectation that Dolby will offer disposable 3D glasses; and the anticipated market acceptance of Dolby 3D Digital Cinema systems, 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 3D Digital Cinema systems may not perform as anticipated; risks that the adoption and installation of Dolby 3D Digital Cinema, as well as the timing of such adoption and installation, by exhibitors may not occur as expected; risks associated with building market acceptance of and demand for digital cinema and 3D digital cinema in general, and for Dolby 3D Digital Cinema systems in particular, by filmmakers, studios, cinema operators, and audiences; competition risks for digital and 3D theatre technologies; rapid changes in technical requirements for movie theatrical playback technologies specifically and entertainment technologies for movies in general; risks associated with developing proprietary technologies and products based on "open standards"; risks associated with the health of the motion picture 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. Digital Light Processing and DLP are trademarks of Texas Instruments. S07/18836 DLB-G