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San Francisco—Apr 4, 2003

Dolby Laboratories Acquires Assets of DemoGraFX

Move furthers Dolby's strategic interests specialized image processing technology
Dolby Laboratories announced that it has entered into an agreement to acquire the assets of DemoGraFX, Inc., a leading developer of specialized digital video signal processing and image coding technology.

Among the assets that Dolby will acquire are the DemoGraFX patent portfolio, its image signal processing know-how, its hardware and software systems, product prototypes and product line, and its complete technology development infrastructure.

The DemoGraFX image technology team will operate out of Dolby's Burbank facility, close to the entertainment industry's west coast production and postproduction communities, and will report through Dolby's Research Division at corporate headquarters in San Francisco.

The technology team has broad experience in image compression, filtering, format conversion, computer graphics, software modeling, image quality analysis, parallel computing, PC application software, and video and PC hardware design. The team will focus on the development of specialized image processing technology that delivers visually superior imagery in a wide range of industry standard digital video entertainment formats.

"Dolby's strategy is to deliver key signal processing solutions for entertainment applications," said Bill Jasper, President, Dolby Laboratories. "The DemoGraFX asset purchase is a perfect fit as we expand our technology, product, and service businesses with very high quality image processing solutions that target important markets in entertainment."

Key among the intellectual property that Dolby will acquire are DemoGraFX Compression Pre-Filtering (video noise reduction) technology, products, and services; its image coding know-how and development expertise around the emerging JVT/AVC H.264 Advanced Video Coding standard; and its expertise in layered image coding.

Craig Todd, Sr. Member of the Technical Staff at Dolby, who targeted DemoGraFX and contributed to strategy for the asset purchase, said, "This acquisition will give Dolby a technology base on which to build a portfolio of specialized image technology professional products, and licensable consumer technologies, consistent with Dolby's proven business models and strategies."

The image technology team joining Dolby will be led by Kevin Stec in his new role as Director, Technology Development, supported by the technical leadership of Principal Engineer Walter Gish. Tom McMahon will join Dolby's Research Department as Senior Architect focusing on image coding technology, strategy, and standards, and contributing to related business development efforts.

"Dolby's unparalleled success at bringing to market technologies that enhance the entertainment experience worldwide will help ensure a solid return on the company's investment in DemoGraFX technology, its know-how, and its technology team," said Peter Forman, DemoGraFX CEO.

The asset purchase is expected to close by the end of April.

Dolby Contacts: Sales:
DDCinfo@dolby.com

Media Contact:
Joshua Gershman
Dolby Laboratories
415-645-5611
Joshua.gershman@dolby.com
Dolby Web Site:
Logo: Dolby Laboratories, Inc. About Dolby Laboratories, Inc.: 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. Dolby Laboratories, Inc. Directory page Dolby Laboratories, Inc. Web Site
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