The company is aleading provider of financial services for institutions, corporations andhigh-net-worth individuals, providing superior asset management and wealthmanagement, asset servicing, issuer services, clearing services and treasuryservices through a worldwide client-focused team. To access the conference call, dial 800-219-6110 or303-262-2175 (outside the U.S and Canada). This press release contains a reconciliation of the non-GAAP measures tothe most directly comparable GAAP measures as required under SEC rules. The non-GAAP financial information presented in this press release andduring our conference call should be considered in addition to, not as asubstitute for, or superior to, financial measures calculated in accordance withGAAP. In addition, we cannot reasonably estimate the financial implications ofour legal proceedings with Zoran Corporation on the remainder of 2009 at thistime.

Webelieve that, while these non-GAAP measures are not a substitute for GAAPresults, they provide useful information for comparing the Company`s results ofoperations in 2009 to those reported in 2008 and historically by excluding itemsthat may be non-recurring or may occur at unpredictable levels from period toperiod. Generally, a non-GAAP financial measure is a numericalmeasure of a company`s performance, financial position, or cash flows thateither excludes or includes amounts that are not normally excluded or includedin the most directly comparable measure calculated and presented in accordancewith generally accepted accounting principles in the United States, or GAAP. In addition, the non-GAAP earnings guidancefor 2009 presented in this press release excludes expenses that may be incurredor any settlement payments that may result from our ongoing legal proceedingswith Zoran Corporation. We computed non-GAAPoperating income and margin by excluding expenses related to our ongoinglitigation with Zoran Corporation. As such, weare planning on our non-GAAP earnings to be in the range of $0.55 to $0.60 perdiluted share.” Non-GAAP Financial MeasuresIn this earnings release and during our earnings conference call and webcast asdescribed below, we use or plan to discuss certain non-GAAP financial measures.We computed non-GAAP net income per share from continuing operations byexcluding expenses related to our ongoing litigation with Zoran Corporation andtax adjustments related to ongoing prior year tax audits. Due tointensifying activity levels, the sensitive nature of disclosure, and thevariability of potential financial outcomes, our guidance for the remainder ofthe year will exclude costs related to the Zoran legal proceedings.

Looking forward, we continue to expect 2009 fiscal year revenue of $65to $69 million, including approximately $4 million in royalty recoveries. We are encouraged by recent developments in Blu-ray across all marketsegments. “From a core operations perspective, we had good financial results in the firstquarter, reporting solid revenue and operating margins excluding the litigationcharges. Notably during thequarter, our Blu-ray-related PC revenue grew 5x over the prior`s year firstquarter. Excluding expensesrelated to the Company`s ongoing litigation with Zoran Corporation, firstquarter 2009 operating income would have been $4.4 million, or 26% of revenue(non-GAAP).

DTS closed the first quarter with cash, cash equivalents and short-terminvestments of $75.7 million up $8 million during the quarter. “Despite continued uncertainty in the overall economy, certain segments of theentertainment and consumer electronics markets are performing reasonably well,”commented Jon Kirchner, president and CEO of DTS, Inc. “The market for Blu-rayproducts continues to accelerate with declining price points, greater hardwareand content availability, and increasing retail presence. First quarter 2009 operating income was $1.8 million, or 11% of revenue,compared to $4.4 million in the first quarter of 2008.