Cinea Enables Forensic Watermarking of Encrypted Content for Enhanced Content Protection

Technology Allows On-Demand Content Providers to Keep Video Highly
Secure Along Entire Distribution Chain
RESTON, Va.--(Business Wire)--
Cinea, Inc., a subsidiary of Dolby Laboratories, Inc. (NYSE:DLB),
today announced that its Running Marks(TM) technology now enables
traceable, stream-specific forensic watermarking of encrypted content.
The new approach allows Running Marks to embed a unique serial number
into individual customer video streams, without requiring providers or
system operators to expose the high-value content in an unencrypted
format. The new functionality enables distributors of on-demand
content in the cable, telecommunications, satellite, and
video-download markets to provide a secure distribution chain that
minimizes cost, time, and exposure to theft and piracy.

Content protection has become a vital element of distribution for
today's content holders and system operators, especially as premium
Hollywood content is increasingly released simultaneously on DVD and
video-on-demand (VOD) systems. Until now, applying a unique forensic
watermark to already-encrypted (AKA pre-encrypted) content required
several operations, including decryption, watermarking, and
re-encryption, before being released to the VOD customer.

Cinea's Running Marks solution for pre-encrypted on-demand content
is both practical and efficient. Using a unique replacement-based
architecture extends Running Marks' watermark information to encrypted
compressed content for on-demand delivery. A watermark unique to each
VOD stream is embedded into the encrypted video content as it leaves
the VOD server environment. This watermark aids in pinpointing
vulnerable touch points in the distribution chain in the event that
the copyright-protected content is compromised.

"Our customers have inquired about watermark deployment within an
encrypted environment, since many motion picture studios and other
high-value content providers mandate encryption as a part of their
overall content protection requirements," said Rob Schumann, General
Manager of Cinea, Inc. "Running Marks allows system operators to meet
content providers' stringent security requirements in an efficient and
secure manner."

"With developments like this, Cinea makes it easier and less
costly for premium video content providers to adopt transactional
watermarking, which should reduce content misuse," said Bill
Rosenblatt, President of GiantSteps Media Technology Strategies and
Editor of DRM Watch (www.drmwatch.com). "Service providers and device
manufacturers who are concerned about the complexity of advanced
watermarking should look to Cinea for its leadership in lowering
barriers to adoption throughout the content value chain."

Cinea's Running Marks replacement-based architecture offers a
variety of compelling advantages, including extensive flexibility to
mark compressed content anywhere during the content distribution path
as well as on delivery to a home media gateway. Running Marks'
ultra-light message inserter consumes very few resources so that it
can be implemented in VOD systems with little impact on the streams
supported. Additionally, the watermark system can be renewed at the
content ingest points with no need to update the VOD or edge servers.

About Cinea

Cinea, Inc., a Dolby company, develops and commercializes a broad
variety of content-protection solutions for the motion picture and
television industries. Current customers include many of the major
film studios as well as leading service vendors in the entertainment
industry. The company's forensic watermarking technology, Running
Marks, allows content owners to track pirated content to specific
devices, from set-top boxes to PCs to portable video devices to mobile
phones. Cinea's executives are well-known authorities on content
protection and forensic watermarking. The company is also a founding
member of the Digital Watermarking Alliance. For more information
about Cinea, Inc. or Cinea(R) technologies, please visit
www.cinea.com.

Certain statements in this press release, including statements
regarding the performance, features, reliability, and capabilities of
Running Marks; the potential benefits that systems operators and other
users may derive from Running Marks; and the anticipated market
acceptance of Running Marks, 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 adoption of Running Marks may not occur as currently anticipated;
risks that Running Marks may not perform as anticipated; risks
associated with building market acceptance of and demand for Running
Marks; competition risks for watermarking technology; rapid changes in
technical requirements for antipiracy protection; 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.

Cinea is a registered trademark of Cinea, Inc. Running Marks is a
trademark of Cinea, Inc. S08/19492

mPRm Public Relations
Jessica Wolf, 323-933-3399 ext. 4202
jwolf@mprm.com

Copyright Business Wire 2008