DTS Establishes DTS Canada ULC

AGOURA HILLS, Calif. -Nov. 2, 2004 - DTS (Digital Theater Systems, Inc.) has completed the acquisition of QDesign Corporation, a Canadian audio delivery technology company, which is now formally DTS Canada ULC. Based in Vancouver BC and already integrated into DTS' ongoing activities, the DTS Canada ULC team will focus exclusively on product development, IP creation and Research & Development.

Focused on developments in audio, video and security technologies, QDesign brings DTS experience and intellectual property relating to entertainment delivery in lower-bit rate, bandwidth-constrained environments such as wireless audio, portable devices and the Internet.

"The acquisition of QDesign -- now DTS Canada ULC -- gives DTS access to a very talented group of engineers with the expertise and experience that will supplement and bolster our consumer licensing offerings in 2005 and beyond," said Jon Kirchner, President and CEO of DTS. "We look forward to continuing to expand our product development efforts, and believe DTS Canada will be a key part of that growth."

DTS is headquartered in Agoura Hills, CA. and also maintains offices in Guangzhou, China, Hong Kong, China, Twyford, England, Bangor, Northern Ireland and Tokyo, Japan.

About DTS
DTS (Digital Theater Systems, Inc.) (NASDAQ: DTSI - News ) 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 processors, and there are over 280 million 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 5.1 Music Discs, DVD-Video, DVD-Audio and DVD-ROM software. Additionally, DTS is featured on more than 23,000 motion picture screens worldwide. Founded in 1993, DTS is headquartered in Agoura Hills, California and has offices in the United Kingdom, Japan and China. For further information, please visit www.dtsonline.com .

DTS is a trademark of Digital Theater Systems, Inc.