CHICAGO, March 29 /PRNewswire/ -- William Blair & Company today announced that it initiated research coverage of Dolby Laboratories, Inc. ($23.15), a leader in premier audio technology for more than 40 years, with an Outperform rating and company profile of Core Growth.

Analyst Ralph Schackart estimated that the company, whose technology is incorporated in more than 250 million electronic devices worldwide each year, would earn $0.73 per share in fiscal 2005 and $0.86 per share in fiscal 2006.

"An investment in Dolby is a great way to play the growth in sales of home theaters, HDTV, video games, and other consumer electronics devices, which continue to flourish due to a consumer upgrade cycle to digital technology," Schackart said. "Nearly all consumer electronics products with premium sound incorporate Dolby's technology. The company receives a royalty for each consumer electronics device, PC, and automobile, among others, that embeds Dolby audio technology. As consumers continue to build home-theater systems with HDTVs, purchase PCs with DVD capabilities, and as each video game cycle gets larger than the previous, Dolby's business should continue to prosper."

"The Dolby brand is associated with high-quality sound, and its worldwide brand recognition rivals many blue-chip companies," he added. "We believe this is a powerful part of its ability to forge strong licensing deals for new markets. This strong brand awareness ensures consumers want to own consumer electronics devices with Dolby technology. Moreover, the Dolby brand helps movie theaters draw bigger crowds with the Dolby Digital logo."

William Blair & Company, L.L.C. ( http://www.williamblair.com/ ) is a Chicago- based investment firm, founded in 1935.

William Blair & Company, L.L.C. has received compensation for investment banking services from the company within the past 12 months, or expects to receive or intends to seek compensation for investment banking services in the next 3 months.

William Blair & Company, L.L.C. was a manager or co-manager of a public offering of equity securities within the prior 12 months.

For important disclosures and information regarding the firm's rating system, valuation methods and potential conflicts of interest, please visit: http://www.williamblair.com/pages/eqresearch_home.asp?uid=813

Additional information is available upon request.

William Blair & Company, L.L.C. is a member of the National Association of Securities Dealers, CRD number 1252.

CONTACT: Tony Zimmer of William Blair & Company, L.L.C.,
+1-312-364-8611, or tzimmer@williamblair.com

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