DTS Completes Sale of Digital Cinema Business to Datasat Communications

May 12, 2008 – The sale of the Digital Cinema business closed on May 9 for approximately $3.3 million in cash and the assumption of certain liabilities. Under the terms of this transaction, in certain circumstances DTS could receive up to $11.7 million in additional consideration over the next few years.

DTS Digital Cinema has delivered soundtracks for over 9,000 releases in over 100 countries and its digital

cinema products (FilmStore® Content Management System and DTS Digital Cinema Theatre Management System) are now proven and in service. These products have undergone substantial design and development and are ideal as the basis for the latest-generation D-Cinema networks. Our focus is on our customers and leveraging the strength of our products and services to meet their needs in the changing marketplace. We will continue to use the DTS brand for the foreseeable future under our agreement with DTS.”

Jon Kirchner, President and CEO of DTS, Inc. added, “We have now completed the sale of the Digital Cinema business which allows DTS to focus entirely on building a high growth consumer business. I truly appreciate the dedication of the management team and employees who continued to build the digital cinema business throughout the sale process, ultimately positioning it for future success under Beaufort’s ownership.”

Beaufort International Group Plc is majority-owned by Datasat Communications Ltd., a UK-based satellite services provider. Datasat’s Managing Director Phil Emmel stated, “We decided to invest in the DTS Digital Cinema business because the company is one of the few golden brands that is established within the production and distribution and exhibition marketplaces. It is our vision that we can build a significant presence as a provider of products and services to the digital cinema industry. We want to work with all of the stakeholders to make their lives easier in the transition to D-Cinema and also to provide unparalleled levels of service to everyone working with media content. It is a natural extension of our existing managed service business in which we routinely deliver data and media content over secure networks.”


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