The mean estimate of analysts surveyed by Thomson Reuters was for earnings of 42 cents a share.

Revenue rose 34% to $172.6 million from last year's $129.1 million, topping analyst forecasts of $159.1 million, amid 40% growth in licensing revenue, a 1% increase in product sales and a 6% rise in services revenue.

The San Francisco entertainment products and technologies company said it expects fiscal 2008 earnings of $1.47 to $1.57 a share, with stock-based compensation expenses expected to be $22 million and charges related to the amortization of intangibles projected to be $13 million.

Revenue for the fiscal year are expected to be $585 million to $615 million.

Analysts, on average, are expecting earnings of $1.46 and revenue of $607.4 million.

The stock closed Thursday's regular session at $41.75. Tomi Kilgore tk1

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Dolby stated the results of a research study conducted by the Consumer Electronics Association (CEA) showed that good TV sound actually improves perceived picture quality (CEA, Audio Purchasing Study, 2006).

Dolby said to enable HD surround sound, you'll need a set of speakers, a subwoofer, and a receiver. You can opt to purchase these separately or choose a home-theater-in-a-box system.

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"As excitement grows for digital 3D, we wanted to make it easy for exhibitors around the world to adopt Dolby 3D and offer their patrons an enhanced cinema going experience," said John Carey, Vice President Marketing, Cinema, Dolby Laboratories. "We are committed to providing interoperability in our digital cinema products to give exhibitors a choice in suppliers."

The Dolby 3D playback compatibility licensing program delivers solutions designed to ease interoperability among digital cinema manufacturers. Since Dolby 3D uses dual-channel, real-time color correction technology within the playback server, studios are not required to perform any 3D vendor-specific preprocessing. To ensure optimal Dolby 3D quality, Dolby strictly defines the technical requirements and evaluates the playback systems.

"This licensing deal for Dolby 3D is a major step for the digital cinema industry. Indeed, our current exhibitor clients already equipped with the XDC CineStore(R) Solo G3, and all the other exhibitors deploying digital screens and selecting our server because of its assets, will now be able to install Dolby 3D Digital Cinema technology," said Thierry Van der Kaa, General Product Manager at XDC. "Exhibitors will then have the opportunity to project 2D and 3D shows using their regular white screen and without any 'ghost-busting' effect."

The Dolby 3D Digital Cinema playback compatibility licensing program is open to digital cinema server manufacturers capable of meeting Dolby's performance requirements and approval processes. Approvals are granted upon rigorous testing of the integration and accuracy of Dolby 3D color correction algorithms. Exhibitors looking to implement 3D with a Dolby 3D licensed playback server will also need a Dolby 3D compatible projector or a retrofit kit for existing projectors that includes an easily installed full-spectrum color filter wheel.

About Dolby 3D Digital Cinema

Dolby 3D Digital Cinema technology, in conjunction with digital cinema projectors featuring Texas Instruments Digital Light Processing(TM) (DLP) technology, provides exhibitors with an efficient and flexible solution designed to deliver a superior 3D experience. Dolby 3D utilizes standard white screens, so exhibitors don't have the added cost or the quality compromise associated with the use of silver screens, delivering a great 3D experience from every seat in the house. Additionally, Dolby Laboratories provides cost-effective and environmentally friendly passive reusable 3D glasses. Dolby's 3D solution uses a unique full-spectrum color-filter technology licensed from Infitec that provides realistic color reproduction and extremely sharp images.

About Dolby Laboratories

Dolby Laboratories (NYSE:DLB) is the global leader in technologies that are essential elements in the best entertainment experiences. Founded in 1965 and best known for high-quality audio and surround sound, Dolby innovations enrich entertainment at the movies, at home, or on the go. Visit www.dolby.com for more information.

Certain statements in this press release, including statements regarding the performance, features, reliability, and capabilities of Dolby 3D Digital Cinema; the potential benefits and cost savings that studios, exhibitors, and audiences may derive from Dolby 3D Digital Cinema systems; the anticipated availability of the Dolby 3D Digital Cinema licensing program to digital cinema server manufacturers; and the anticipated market acceptance of Dolby 3D Digital Cinema systems, are "forward-looking statements" that are subject to risks and uncertainties. These forward-looking statements are based on management's current expectations. The following important factors, without limitation, could cause actual results to differ materially from those in the forward-looking statements: risks that Dolby 3D Digital Cinema systems, including those that have licensed Dolby 3D Digital Cinema technology, may not perform as anticipated; risks that the adoption and installation of Dolby 3D Digital Cinema systems, including those that have licensed Dolby 3D Digital Cinema technology, as well as the timing of such adoption and installation, by exhibitors may not occur as expected; risks that server manufacturers may not license the Dolby 3D Digital Cinema technology or may not meet the performance requirements or approval processes in order to receive a license; risks associated with building market acceptance of and demand for digital cinema and 3D digital cinema in general, and for Dolby 3D Digital Cinema systems in particular, by filmmakers, studios, cinema operators, and audiences; competition risks for digital and 3D theatre technologies; rapid changes in technical requirements for movie theatrical playback technologies specifically and entertainment technologies for movies in general; risks associated with developing proprietary technologies and products based on open standards; risks associated with the health of the motion picture industry in general; risks associated with developing, maintaining, and strengthening relationships with industry participants; and other risks detailed in Dolby's Securities and Exchange Commission filings and reports, including the risks identified under the section captioned "Risk Factors" in its most recent Periodic Report on Form 10-Q or 10-K. Dolby disclaims any obligation to update information contained in these forward-looking statements, whether as a result of new information, future events, or otherwise.

Dolby and the double-D symbol are registered trademarks of Dolby Laboratories. S08/19930 DLB-G

SOURCE: Dolby Laboratories, Inc.

Dolby Laboratories UK
Mark Price, 44-1793-842195
mark.price@dolby.com
or
Dolby Laboratories US
Joshua Gershman, 415-645-5611
joshua.gershman@dolby.com