Dolby Laboratories and MIPS Technologies Poised to Deliver Next-Generation Audio Technology for Set-Top Box, HD DVD, and Blu-ray Disc Markets

MOUNTAIN VIEW and SAN FRANCISCO, Calif., August 14, 2006– MIPS Technologies, Inc. (NASDAQ: MIPS) and Dolby Laboratories, Inc. (NYSE: DLB) today announced that the companies will deliver next-generation audio technology across all segments of home entertainment, including the set-top box, HD DVD, and Blu-ray Disc™ markets. MIPS Technologies is the first processor IP company to support the new Dolby ® Digital Plus technology. The newly optimized codec from Dolby Laboratories has been approved for use with all MIPS32 ® processor cores.

Dolby Digital Plus is Dolby’s next-generation home entertainment audio technology designed for high-definition programming and media. Providing the same high quality available today with Dolby Digital, Dolby Digital Plus requires less bandwidth and maintains compatibility with millions of existing Dolby Digital receivers. Additionally, Dolby Digital Plus has the power and flexibility to maximize the full audio potential of the newest HD DVD and Blu-ray Disc formats—so listeners get even higher-quality audio, more channels, and superior multichannel audio performance.

The MIPS ® -optimized Dolby Digital Plus audio codec provides system-on-a-chip (SoC) designers a more rapid and low-risk methodology for deploying the latest audio technology. The codec is an essential component of SoCs designed for HD DVD and Blu-ray Disc players as well as set-top box applications—markets where MIPS Technologies has significant market dominance.

“With the increased levels of sophistication in the Dolby Digital Plus format, chip design is more intricate and requires a considerable amount of time to implement, optimize, and approve for consumer SoCs,” said Page Haun, worldwide director, broadcast segment, Dolby Laboratories. “We’re pleased that our joint efforts with MIPS Technologies will result in a process that will reduce months of engineering time, decrease risk, and dramatically accelerate time-to-market for silicon designers using industry-standard MIPS cores.”

"We’re delighted to continue working with one of the long-time industry leaders in advanced audio technology," said Jack Browne, vice president of marketing for MIPS Technologies. “The availability of Dolby Digital Plus for our MIPS cores helps our customers gain an essential time-to-market advantage and provides both companies with market opportunities in home entertainment applications where MIPS Technologies already enjoys a dominant presence.”

Availability
Dolby Digital Plus technology optimized for all MIPS32 processor cores is available immediately as part of MIPS Technologies’ comprehensive Soft Audio Suite. SoC designers with a Dolby license for Dolby Digital Plus can now replace their Dolby software with a pre-tested MIPS-optimized version that has been approved by Dolby. For more information, contact MIPS Technologies at 650-567-5000, or visit www.mips.com/content/Products/SystemIP/SoftAudio/DDPlus.

About Dolby Laboratories
Dolby Laboratories (NYSE: DLB) develops and delivers products and technologies that make the entertainment experience more realistic and immersive. For four decades Dolby has been at the forefront of defining high-quality audio and surround sound in cinema, broadcast, home audio systems, cars, DVDs, headphones, games, televisions, and personal computers. Based in San Francisco with European headquarters in England , the company has entertainment industry liaison offices in New York and Los Angeles , and licensing liaison offices in London , Shanghai , Beijing , Hong Kong, and Tokyo . For more information about Dolby Laboratories or Dolby technologies, please visit www.dolby.com.

About MIPS Technologies
MIPS Technologies, Inc. (NASDAQ: MIPS) is a leading provider of industry-standard processor architectures and cores for digital consumer and business applications. The company drives the broadest architectural alliance that is delivering 32- and 64-bit embedded RISC solutions. The company licenses its intellectual property to semiconductor companies, ASIC developers, and system OEMs. MIPS Technologies and its licensees offer the widest range of robust, scalable processors in standard, custom, semi-custom, and application-specific products. The company is based in Mountain View , Calif. , and can be reached at 650-567-5000 or www.mips.com.