DTS Audio Technologies for Blu-ray Disc and HD DVD to be Added to Tensilica's HiFi 2 Audio Engine

– Tensilica, Inc. and DTS, Inc. (NASDAQ: DTSI) today announced that the two companies have entered into an agreement for Tensilica to provide leading-edge DTS technologies for both Blu-ray Disc and HD DVD and other high end consumer audio applications with Tensilica’s HiFi 2 Audio Engine, the most popular commercial audio DSP core for system-on-chip (SOC) designs.

“By working with Tensilica, we can help our customers incorporate our advanced sound technologies very quickly and easily,” stated Brian Towne, Senior Vice President and General Manager, Consumer Division at DTS. “The market for high definition audio systems is beginning to materialize and the availability of DTS technologies on the HiFi 2 audio engine will help enable the accelerating growth.”

“DTS audio is essential for our consumer products customers who want to quickly bring new high-end audio products to market,” stated Steve Roddy, Vice President of Marketing of Tensilica. “We are pleased to be working with DTS to offer their best in class audio technologies in an optimized firmware implementation that can be quickly designed into new chips by our mutual customers.”

The agreement encompasses the complete range of DTS audio technologies for the consumer electronics market. These range from DTS Digital Surround all the way up to DTS-HD Master Audio, which provides up to 7.1 discrete channels of sound that are bit-for-bit identical to a master soundtrack.

Tensilica’s HiFi 2 Audio Engine is a fully programmable processor core that can easily be designed into a SOC to provide high-quality 24-bit audio at low power in a small area. It features over twenty audio codecs for multiple audio standards.

Availability

These DTS technologies are currently under development at Tensilica and will be available for HiFi 2 and Diamond Standard 330HiFi licensees in the first half of 2008.

About DTS

DTS, Inc. (NASDAQ: DTSI) 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 processor, and there are hundreds of millions of 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 DVD-Video, HD DVD, Blu-ray Disc and Surround Music software. DTS audio products are featured on more than 27,000 motion picture screens worldwide. Additionally, DTS provides imaging technology and services for the motion picture industry; DTS Digital Images, formerly Lowry Digital Images, is a wholly-owned subsidiary of DTS and an industry leader in image restoration and enhancement. Founded in 1993, DTS is headquartered in Agoura Hills, California and has offices in the United Kingdom, Ireland, France, Italy, Canada, Hong Kong, Japan and China. For further information, please visit www.dts.com

About Tensilica

Tensilica, Inc., is the recognized leader in configurable processor technology and has leveraged that technology to become the leading supplier of licensable controllers and DSP cores for mobile audio and video applications. Tensilica offers the broadest line of controller, CPU, network, and specialty DSP processors on the market today – including full software toolchain and modeling support - in both an off-the-shelf format via the Diamond Standard Series cores and with full designer configurability with the Xtensa processor family. The modern design behind all of Tensilica’s processor cores provide semiconductor companies and system OEMs with the lowest power, smallest area solutions for high-volume products including mobile phones and other consumer electronics, networking and telecommunications equipment, and computer peripherals. For more information on Tensilica’s patented, benchmark-proven processors, visit www.tensilica.com.