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San Francisco—Sep 22, 2003

Dolby Acquires Cinea

Acquisition of anti-piracy technology company furthers ability to meet the needs of the entertainment marketplace
Dolby Laboratories announced that it has acquired Cinea, a start-up content-protection and anti-piracy technology company based in Virginia. Cinea will operate as a wholly owned subsidiary of Dolby Laboratories, with Cinea personnel and offices remaining in Virginia. Cinea CEO and founder Robert Schumann becomes head of the new Dolby subsidiary, reporting to Tim Partridge, Vice President, Professional Division, Dolby Laboratories.

"Content is increasingly being delivered digitally, and unauthorized use of digital content can have serious consequences for the content owner. Content protection has thus become an ever more important element in enabling the delivery of high-quality entertainment," said Partridge. "Cinea has proven expertise in this important area, and is an ideal complement to Dolby's audio and image expertise."

Mr. Partridge added, "Our studio customers have made it clear that piracy is the most important problem they face today. Dolby has a long history of meeting the needs of the film industry through technical innovations such as stereo, surround sound, and digital audio. Content protection is another area where innovative and comprehensive solutions are clearly needed."

"Cinea's mission is to provide world-class anti-piracy tools and services to our studio customers," said Schumann. "Dolby's unsurpassed reputation for quality and customer service-and proven ability to bring practical solutions to market-will allow Cinea to expand the scope of our offerings and provide our customers with quality solutions worldwide."

Mr. Schumann added, "Whether it's with Dolby's Production Services Group working in content creation, its Professional Products Division, or its Consumer Licensing program, we see tremendous opportunities for our technologies. We believe Dolby is uniquely positioned to leverage the content protection offerings of Cinea."

Cinea, Inc., was founded in 1999 to develop and commercialize a broad variety of content protection solutions for markets that include digital cinema, in-flight entertainment, high-definition DVD, and video on demand. Most of Cinea's staff previously formed the senior technical and operating team for Digital Video Express, LP (Divx), a Circuit City subsidiary that implemented a highly secure DVD-based delivery system.

Content Protection in the Digital Entertainment Era
Entertainment content protection consists of a collection of services, products, and licensable technologies deployed across the entire content chain, from content creation all the way to the consumer. It is a key to enabling the distribution of high-value digital content to consumers, whether at home, in theatres, or other venues. The need for interoperable secure systems is particularly important in digital cinema, where highly valuable content is mastered, distributed, and ultimately projected for the enjoyment of moviegoers.

Cinea possesses broad skills and proven technologies in content protection, with an emphasis on professional markets, including digital cinema. Specifically, Cinea possesses industry leading expertise in key areas such as highly secure hardware and software, watermarking and fingerprinting, back-end content protection infrastructure, and camcorder anti-piracy.

Security products will continue to be developed in Virginia and released under the Cinea brand, with worldwide support and infrastructure offered by Dolby.


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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