Exhibit 99.1

           Dolby Laboratories Updates Fiscal 2005 Financial Guidance;
             IPO Lockup Agreements Extended Until September 1, 2005

    SAN FRANCISCO--(BUSINESS WIRE)--Aug. 15, 2005--Dolby Laboratories
(NYSE:DLB) announced today that it is updating its previously
announced revenue guidance for its fiscal year ending September 30,
2005, to a range of $315 to $330 million based on royalty reports it
has received from its licensing customers since the beginning of
August 2005.
    Dolby generally books licensing revenue upon its receipt of
licensees' royalty statements, which are typically delivered within 30
to 60 days following the end of the quarter in which such licensees
ship products. To date, Dolby has received approximately half of the
royalty reports it expects to receive during its current fiscal
quarter, although several of the Company's significant licensees have
yet to deliver royalty reports this quarter. Nonetheless, the royalty
reports Dolby has received since the beginning of August indicate that
those customers are shipping fewer products incorporating Dolby(R)
technologies than had been previously forecasted. This may be
attributable in part to a slowdown in the growth of sales of
traditional consumer DVD players by licensees and to slower than
anticipated adoption by consumers of recordable and next-generation
DVD players. In addition, some of Dolby's consumer electronics product
manufacturer licensees are reducing the complexity of their low-end
DVD players, and are incorporating fewer Dolby technologies into these
products as a result. Moreover, the consumer electronics product
industry has also seen a movement by discount retailers toward
lower-end, Chinese-manufactured DVD players. The Company has
experienced challenges with Chinese consumer electronics product
manufacturers underreporting shipments of their products that
incorporate Dolby technologies. These are trends that Dolby has
previously discussed in its periodic reports and earnings conference
calls. As the Company also announced previously, Dolby plans to
introduce a pilot program during its current fiscal quarter to audit
selected licensees as part of the Company's continuing efforts to help
ensure that it is receiving proper royalty payments.
    Dolby decided to revise its guidance for fiscal 2005 at this time
primarily due to the scheduled expiration at the end of business
today, Monday, August 15, 2005, of the lock-up agreements that Dolby's
security holders entered into in connection with Dolby's initial
public offering in February of this year. As a result of this
announcement, the lock-up period will be extended through Thursday,
September 1, 2005.
    Dolby continues to strive to develop and advance technologies for
the entertainment industries that provide long-term benefits for
industry professionals, audiences, and consumers, and, accordingly,
focuses primarily on the long-term growth of its business. As
indicated in its SEC filings and reports and news releases, Dolby has
experienced and expects to continue to experience fluctuations in its
quarterly operating results.

    About Dolby Laboratories

    Dolby Laboratories (NYSE:DLB) develops and delivers products and
technologies that make the entertainment experience more realistic and
immersive. For four decades, Dolby has been at the forefront of
defining high-quality audio and surround sound in cinema, broadcast,
home audio systems, cars, DVDs, headphones, games, televisions, and
personal computers. Based in San Francisco with European headquarters
in England, the company has entertainment industry liaison offices in
New York and Los Angeles, and licensing liaison offices in London,
Shanghai, Beijing, Hong Kong, and Tokyo. For more information about
Dolby Laboratories or Dolby technologies, please visit www.dolby.com.
    Dolby and the double-D symbol are registered trademarks of Dolby
Laboratories. S05/16637 DLB-F

    Certain statements in this press release, including statements
relating to Dolby's expectations regarding revenue for its fiscal year
ending September 30, 2005, are "forward-looking statements" that are
subject to risks and uncertainties. These forward-looking statements
are based on management's current expectations, and as a result of
certain risks and uncertainties actual results may differ materially
from those projected. These risks and uncertainties include, without
limitation, the following: uncertainties associated with trends in
sales by manufacturers of consumer electronics products that
incorporate Dolby's technologies; the timing of Dolby's receipt of
royalty reports and/or payments from its licensees; Dolby's ability to
maintain and strengthen the Dolby brand; Dolby's ability to develop
and deliver innovative technologies in response to changes in the
entertainment industry; risks associated with Dolby's ability to have
its products and technologies adopted as industry standards; Dolby's
ability to enforce its intellectual property rights; Dolby's ability
to develop, maintain, and strengthen relationships with industry
participants; Dolby's ability to have semiconductor manufacturers
incorporate Dolby's technologies into their ICs; the growth of markets
for surround sound technologies; competition risks; pricing pressures;
risks associated with conducting business in China and other countries
that have historically limited recognition and enforcement of
intellectual property and contractual rights; risks associated with
operating Dolby's business internationally; risks associated with
licensing certain of Dolby's technologies in patent pools; Dolby's
ability to develop proprietary technology in markets in which open
standards are adopted; risks associated with the health of the motion
picture industry generally; the growth of the market for digital
cinema; Dolby's ability to expand its business into non-sound
technologies; and other risks detailed in Dolby's Securities and
Exchange Commission filings and reports, including its quarterly
report on Form 10-Q filed with the SEC for the quarter ended July 1,
2005. Dolby disclaims any obligation to update information contained
in these forward-looking statements whether as a result of new
information, future events, or otherwise.

    CONTACT: Dolby Laboratories
             Paula Dunn, 415-645-4100
             investor@dolby.com