January 8, 2001----Taipei, Taiwan and San Francisco, CA----CyberLink, a leading developer of digital video & streaming multimedia software applications, and Dolby Laboratories announce that Cyberlink's PowerDVD 3.0, the world acclaimed software DVD player, now offers users the latest breakthrough in audio entertainment with Dolby Headphone Technology.

Now users can receive virtual five-speaker surround sound playback with any standard pair of stereo headphones. This is great for those who have all the necessary components to enjoy Dolby Digital surround sound, but not all the speakers. It is also great for people with notebook computers, or those who wish to enjoy a more personalized entertainment experience.

"Dolby Headphone allows listeners the experience of home theater sound even though they don't yet own a whole six-speaker home theater system," said Dennis Staats, Director, Computer and Games Technology Marketing, Dolby Laboratories. "Dolby Headphone technology makes surround sound more accessible, private, and portable."

So, how does it work? On their own, a regular pair of stereo headphones will provide users with left and right sounds beside them, with a center sound being delivered in the middle of your head. This experience is called the "in-head" effect, and is not a natural experience. Those who listen to conventional stereo audio over headphones for long periods of time can experience ear fatigue, making the more natural and soothing Dolby Headphone the perfect choice for long listening periods.

Another amazing benefit with Dolby Headphone Technology on PowerDVD 3.0 is the "virtual room" effect. Headphone listeners are immersed in the sound as if they were listening to the audio over actual speakers in a real room. In a home theater system, sound comes out of several speakers and does not only travel along a direct path to the listener's ears. It is also dispersed from the speaker and then reflected off of walls and furniture in the room. Once the signals reach a listener's ears, their brain processes phase information in the signal and uses it to get a feel for the sound properties of the room. Dolby's "virtual room" provides this same effect over headphones.

PowerDVD 3.0 offers three of these "virtual room" environments for listening enjoyment with Dolby Headphone Technology. Room One, called DH1, is "a small, well-damped room appropriate for both movies and music-only recordings". DH2 is a room with enhanced acoustical qualities, and is more suitable for listening to music. DH3 is a big room that resembles an environment more like a movie theater or concert hall. DH1 is a standard on all Dolby Headphone products, but DH2 and DH3 are optional.

"The addition of Dolby Headphone Technology to PowerDVD will provide our customers with the latest and most advanced audio capabilities available today", says Alice H. Chang, CEO of CyberLink Corporation. "Now PowerDVD users don't need an expensive sound system to enjoy all the benefits of Dolby Digital surround sound. With PowerDVD 3.0, and the inclusion of Dolby Headphone Technology, our customers will have access to ultimate video and audio DVD experience.

Listeners can enjoy Dolby Headphone in stereo with program sources such as MiniDiscs and CDs to MP3 files, and in surround sound with most multichannel program sources, whether they are encoded in Dolby Surround, Dolby Digital, PCM, MLP Lossless encoded PCM, MPEG, or AAC. The award-winning technology has been licensed to many major electronics manufacturers including Dell (for the Inspiron 8000), Hitachi, NEC, MGI, Sony, and Analog Devices, and is currently available in in-flight entertainment systems for such airlines as Qantas, Singapore, and Lufthansa Airlines.

PowerDVD is the flagship of CyberLink's complete range of video and audio software products. It features unrivaled functions allowing users to view high quality video and media-rich DVD contents on the personal computer. Together with its robust hardware integration and compatibility, as well as low CPU consumption, PowerDVD offers high performance video playback that rivals any hardware MPEG solution. It's high quality video and audio playback has not only won the praise of its many users, but also from the industry experts. PowerDVD's latest version is 3.0, and has many new features and quality enhancements that will solidify its position as the world's number one choice for high quality DVD playback!

About CyberLink Corp.

Founded in 1995, CyberLink Corporation develops award winning software solutions utilizing digital video and audio kernel technology. The company believes digital video and audio technologies can be used creatively in building innovative software tools like digital video recording, multimedia slide shows, DVD playback, and video communication tools. Its multimedia and Web software solutions enable customers to fully utilize the PC's audio and video capabilities, while also supporting real-time Internet services and communication. As a result of the company's solid growth and profitability CyberLink went IPO in October of 2000 and is listed on the Taiwan OTC (Over The Counter) Exchange. For more information on CyberLink and its award winning software products, please visit: http://www.goCyberlink.com/

About Dolby Laboratories

Dolby Laboratories is the developer of signal processing systems used worldwide in applications that include motion picture sound, consumer entertainment products and media, broadcasting, and music recording. Based in San Francisco with European headquarters in England, the privately held company also has offices in New York, Los Angeles, Shanghai, Beijing, and Tokyo. For more information about Dolby Laboratories or Dolby technologies, please visit www.dolby.com.

CyberLink programs are available for press evaluation. Please send requests to: press@gocyberlink.com or contact us by phone at: +886-2-8667-1298.