Dolby Axon Selected As 2010 CES Innovations Award Honoree

Dolby Laboratories, Inc. (NYSE: DLB) today announced that it has been selected as a 2010 International CES^® Innovations Design and Engineering Awards honoree for its Dolby^® Axon desktop client software. The Innovations Design and Engineering Awards program recognizes the most innovative consumer electronics (CE) products in the industry’s hottest product categories. Products entered in this prestigious program are judged by a preeminent panel of independent industrial designers, engineers, and members of the media to honor outstanding design and engineering.

The Dolby Axon desktop client software brings improved voice clarity and surround sound to stand-alone voice chat applications designed for online gamers. Dolby’s innovations in audio processing mean that in-game conversations can be more natural, more efficient, and easier to understand. Both in game and out, the software will enable gamers to naturally discern who is talking by the direction of his or her voice, and moreover, selectively listen to one of many conversations by focusing attention in a particular direction. The new software is well-suited for chat room features in online multiplayer games, and has an easy-to-use graphical interface that allows users to create, join, and interact in visual chat rooms.

"We are extremely honored to be recognized for this award in innovation,” said Matt Tullis, Senior Marketing Manager, Games, Dolby Laboratories. "When you are in a game, Dolby Axon gives you the ability to differentiate between your teammates and easily recognize who is talking, producing a much more realistic and enjoyable experience—but more importantly, it means that you can react faster in the game and win.”

The prestigious Innovations Design and Engineering Awards program has been recognizing achievements in product design and engineering since 1976. It is sponsored by the Consumer Electronics Association (CEA), the producer of the International CES, the world’s largest consumer technology tradeshow, and endorsed by the Industrial Designers Society of America (IDSA), the voice of industrial design, which is committed to advancing the profession through education, information, community, and advocacy.

The Innovations Design and Engineering Showcase will feature honorees by product category in the Grand Lobby of the Las Vegas Convention Center and will also be featured at CES Unveiled, the official press event of the International CES on Tuesday, January 5.

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 creates innovations that 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 benefits, performance, features, and capabilities of Dolby Axon; the anticipated or potential benefits that game publishers, developers, and users may derive from Dolby Axon; the timing and availability of the Dolby Axon desktop client software, of game titles incorporating Dolby Axon in general; and the anticipated market acceptance and demand for Dolby Axon by game publishers, developers, and users, 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 Axon may not perform as anticipated; risks associated with building market acceptance for game audio technologies in general and Dolby Axon in particular; competition in the market for game audio technologies; rapid changes in technical requirements for game audio technologies; 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. All other trademarks remain the property of their respective owners. S09/22115 DLB-G