Dolby Brings In-Game Surround Sound Voice to Nexon’s Dragon Nest Online Game

Dolby Laboratories, Inc. (NYSE:DLB) and Nexon Corp. today announced that Nexon Corp.’s new Dragon Nest game will be the first massively multiplayer online role-playing game (MMORPG) in South Korea to incorporate Dolby^® Axon, a surround sound voice technology designed specifically for games.

Dragon Nest delivers an action-filled MMORPG experience with a high level of graphics and action sequences previously found only in console games. The game’s unique Ultimate Combo Play feature allows players to attack foes and monsters using environmental objects, such as walls or rocks, and is integrated with sophisticated character movement, monster artificial intelligence, and precise interaction between the backgrounds and objects.

"A key aspect of MMORPGs and Dragon Nest, in particular, is the need to collaborate and communicate with your online teammates. With Dolby Axon, we’re offering our players an intuitive and natural way to communicate with each other because the technology emulates how we talk in the real world,” said Yi-Young Kim, Manager of the Publishing Department at Nexon Corp.

"Dolby Axon was designed to ultimately enable players to use voice communication as a competitive edge,” said Robin Selden, Senior Vice President of Marketing at Dolby Laboratories. "We incorporated many of the technologies that have come to be synonymous with Dolby, including surround sound and audio clarity, to set a new benchmark for online communication, and we’re excited to have worked closely with Nexon in realizing the potential of this technology.”

Dolby Axon’s key features include:

• Dolby surround sound, which delivers an immersing, realistic voice experience complete with surround panning and distance attenuation.
• An occlusion engine that dynamically responds to game geometry, enabling gamers to experience voice communication that matches the game environment.
• Voice fonts that add an element of fun to the game, and allow gamers to take on their voice of choice with attributes of game characters in supported games. These can range from a high-pitched elf voice to the dark and sinister tones of an ogre.
• Dolby voice pipeline, which delivers a clear voice experience free of unwanted noise, echo, clipping, and leveling problems.
• Flexible API offering creative integration and game play options to developers, including the ability to create new voice experiences in games.

About Nexon Corp.

Established in South Korea in 1994, Nexon Corporation is a pioneer of interactive entertainment software and the world's leader in massively multiplayer online games. Since its development of the world's first graphic MMORPG, The Kingdom of the Winds, in 1995, Nexon's innovative titles have continued to redefine online entertainment.

Nexon is credited with several other industry achievements. It developed the world's first Internet quiz game, QPlay, set a world record of 700,000 concurrent users in China in 2004 with Crazy Arcade BnB, and developed South Korea's most-played online game, KartRider (played by over 30 percent of the population). Through these titles, Nexon also pioneered the "item" (microtransactions) business model, where users access the full game for free and can later opt to pay for game enhancements (items) such as avatar customizations and pets. By developing titles that are more casual than hardcore MMORPGs, Nexon has redefined the notion of online games from a marginal sector propelled by intensive gamers to a progressive, mainstream form of entertainment enjoyed by everyone.

Nexon has offices in Europe, Japan, Korea, and the United States and has partnerships in Brazil, China, Malaysia, Singapore, Taiwan, Thailand, and Vietnam. Visit www.nexon.net for more information.

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.

Forward-Looking Statements

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 gamers may derive from Dolby Axon; the timing and availability of game titles incorporating Dolby Axon in general, and Dragon Nest in particular; expectations relating to Dolby surround sound as a significant element of game play; the anticipated market acceptance and demand for Dolby Axon by game publishers, developers, and gamers, 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.

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