Preview on Display with Expected Availability During 2007

LAS VEGAS--(BUSINESS WIRE)--March 16, 2007--DTS Digital Cinema (NASDAQ:DTSI) has announced that it will preview an Avica FilmStore(TM) D-Cinema player at this year's ShoWest convention. This newest development is the result of a joint engineering effort between Avica and DTS resulting from the exclusive global licensing agreement signed by both companies in November of 2006.

"The benefits of having the Avica IP available for development by DTS Digital Cinema is already showing results in the form of the new update for the FilmStore supporting DCI specification JPEG2000 decoding and decryption," said Don Bird, senior vice president for corporate strategy and business development.

At its ShoWest trade show suite (Palace 2 at Bally's), DTS Digital Cinema will demonstrate JPEG decoding under the control of the FilmStore's well-known user interface. The product has been updated to support compliance with the latest studio requirements for D-Cinema exhibition playout equipment and is expected to be re-released to the market later in 2007. The FilmStore made its initial debut as one of the first commercially available D-Cinema players at ShoWest in 2001 and was successfully deployed on a number of D-Cinema screens worldwide.

Says Nicholas Clay, Avica CEO, "Since joining forces with DTS Digital Cinema, we are pleased to see Avica's products and technologies brought forward to the market with the support of a global organization that has deep expertise and relationships in the cinema industry."

DTS Digital Cinema will have ongoing industry demonstrations of the FilmStore at ShoWest March 12 through March 15.

About DTS Digital Cinema

DTS Digital Cinema is an expert provider of digital entertainment services for content owners and cinema exhibitors. The company specializes in content management solutions for the delivery and exhibition of movies and other content in digital form, with a dedicated focus on supporting the motion picture industry's ongoing transition to digital cinema.

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 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 assumes no obligation to update any forward-looking statement to reflect events or circumstances arising after the date on which it was made.