Leading Motherboard Company, FOXCONN, Teams with Audio Pioneer DTS for Integrated PC Products

DTS, Inc. (NASDAQ: DTSI), a digital audio technology company dedicated to delivering the ultimate entertainment experience and FOXCONN, a worldwide leader in the design and manufacture of PC motherboards, today jointly announced a strategic agreement to integrate DTS CONNECT™ and DTS Surround Sensation™ into upcoming FOXCONN computer motherboards. FOXCONN is widely recognized as one of the largest global providers of PC motherboards for major brand name consumer computers. At FOXCONN’s booth at CeBIT (Hall 21, Stand C21, March 4–9, Hanover, Germany) the two companies will demonstrate these new innovations for the desktop computer market, slated to roll out in the latter half of 2008.

“DTS CONNECT™ ensures simple installation of groundbreaking audio capabilities for the PC, breathing new excitement into every consumer’s audio entertainment experience,” said David Tan, Vice President, Product Management and North American Licensing at DTS. “Coupled with DTS Surround Sensation™, FOXCONN will be able to bring rich DTS surround audio to the global PC market seamlessly, regardless of whether it is in a two channel or multi-channel system environment. We’re proud to be working with FOXCONN, one of the largest motherboard solution providers, to launch these technologies around the world.”

“With DTS technologies we can add further value to our burgeoning Digital Life motherboard segment which focuses on digital entertainment capabilities, and thereby enhance the role of the PC as a digital entertainment platform,” said Eric Chu, Motherboard Product Leader for FOXCONN.

DTS Surround Sensation: Multi Channel Sound From Two Speakers or Headphone

DTS Surround Sensation uses advanced post-processing technology to deliver an incredible surround effect from just two speakers or headphones. The post-processing contains significant psycho-acoustic information that alters human perception, making one believe that sounds actually occur outside the boundaries of the two-speaker system or headphones. Developed with a key understanding of acoustics and years of knowledge in dealing with the properties of sound, DTS Surround Sensation creates a three-dimensional wall of sound that exceeds the limitations of just two speakers for an optimal surround sound experience. DTS Surround Sensation also supplements the weakened stereo image and ambience of digitally compressed audio, while keeping the monaural components (such as solo vocals) unchanged.

DTS Connect: Transforming PC Entertainment

A DTS Connect-enabled PC transforms the PC into an action-packed entertainment experience that surrounds the consumer in sound. The DTS Connect system adds two capabilities to the consumer’s computer: DTS Interactive™ and Neo:PC™, for both multi-channel and stereo content. Taking full advantage of the maximum data throughput of the digital interface, DTS Interactive provides a single cable solution (via S/PDIF digital audio output to a DTS-enabled surround sound system), encoding all audio into a DTS-compatible bitstream at 1.5Mbps. Neo:PC based upon DTS’ Neo:6 matrix surround technology, transforms any stereo content such as MP3, WMA or CD audio, into a simulated 7.1-channel surround sound experience.

About FOXCONN

FOXCONN is the registered trade name of Hon Hai Precision Industry Company Ltd., the foremost provider of joint-design, joint-development, manufacturing, assembly and after-sales services to global Computer, Communication and Consumer-electronics (”3C”) leaders. A business group of Hon Hai Precision Industry Company Ltd., Channel Innovation & Service Group (CISG) provides channel solutions to customers around the globe.

FOXCONN’s Channel Innovation & Service Group (CISG) is committed to providing reliable, high-quality products to all its customers - large and small. We understand how the channel has evolved - its impact on consumers and the people who work in the computer industry. Consequently, we are aggressively innovating to deliver solid, honest products that promote simplicity and ease of use, while at the same time appreciating the natural and human environment through the entire product life cycle. Through this philosophy of connecting people and technologies, Foxconn CISG is enabling a vast range of PC assemblers, retailers and end-users the freedom to create their own computing solutions.

About DTS

DTS, 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 processor, and there are hundreds of millions of 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 DVD-Video, HD DVD, Blu-ray Disc and Surround Music software. DTS audio products are featured on more than 27,000 motion picture screens worldwide. Additionally, DTS provides imaging technology and services for the motion picture industry; DTS Digital Images, formerly Lowry Digital Images, is a wholly-owned subsidiary of DTS and an industry leader in image restoration and enhancement. Founded in 1993, DTS is headquartered in Agoura Hills, California and has offices in the United Kingdom, Ireland, France, Italy, Canada, Hong Kong, Japan and China. For further information, please visit www.dts.com DTS is a registered trademark of DTS, Inc.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks, uncertainties, assumptions and other factors which, if they do not materialize or prove correct, could cause DTS’ results to differ materially from historical results or those expressed or implied by such forward-looking statements. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including statements containing the words “planned,” “expects,” “believes,” “strategy,” “opportunity,” “anticipates” and similar words. These statements may include, among others, plans, strategies and objectives of management for future operations; any statements regarding proposed new products, services or developments; any statements regarding future economic conditions or financial or operating performance; statements of belief and any statements of assumptions underlying any of the foregoing. The potential risks and uncertainties that could cause actual growth and results to differ materially include, but are not limited to, the timing, costs and attention attendant to the divesture of the non-consumer business, the transition to the next generation optical drives and consumer adoption of such technology, the rapidly changing and competitive nature of the digital audio, consumer electronics and entertainment markets, the Company’s inclusion in or exclusion from governmental and industry standards, customer acceptance of the Company’s technology, products, services and pricing, risks related to ownership and enforcement of intellectual property, the continued release and availability of entertainment content containing DTS audio soundtracks, changes in domestic and international market and political conditions, risks related to integrating acquisitions and other risks and uncertainties more fully described in DTS’ public filings with the Securities and Exchange Commission, available at www.sec.gov. DTS does not intend to update any forward-looking statement to reflect events or circumstances arising after the date on which it was made.

- Via PressRoom 2.0 [ http://pressroom2.com/ ] [Inbox MM] [BUSINESS WIRE]

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