SEC FORM 3

SEC Form 3

FORM 3

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person^*

NEE ADREA

(Last)

(First)

(Middle)

(Street)

(City)

(State)

(Zip)

2. Date of Event Requiring Statement (Month/Day/Year)
07/09/2003

3. Issuer Name and Ticker or Trading Symbol
DIGITAL THEATER SYSTEMS INC [ DTSI ]

4. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

	Director	10% Owner
X	Officer (give title below)	Other (specify below)
	VP of Operations

5. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Beneficially Owned
1. Title of Security (Instr. 4)	2. Amount of Securities Beneficially Owned (Instr. 4)	3. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	4. Nature of Indirect Beneficial Ownership (Instr. 5)
Common Stock	16,263	D
Series A Nonconvertible Preferred Stock⁽¹⁾	2,500	D

Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 4)	2. Date Exercisable and Expiration Date (Month/Day/Year)		3. Title and Amount of Securities Underlying Derivative Security (Instr. 4)		4. Conversion or Exercise Price of Derivative Security	5. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	6. Nature of Indirect Beneficial Ownership (Instr. 5)
1. Title of Derivative Security (Instr. 4)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares	4. Conversion or Exercise Price of Derivative Security	5. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	6. Nature of Indirect Beneficial Ownership (Instr. 5)
Warrant (Right to Buy Common Stock)⁽³⁾	10/24/1997	12/31/2007	Common Stock	1,250	0.02	D
Warrant (Right to Buy Common Stock)	10/24/1997	12/31/2007	Common Stock	7,018	12.11	D
Stock Option (Right to Buy)	10/24/2001	09/29/2012	Common Stock	47,500	1.02	D
Stock Option (Right to Buy)	12/01/2002	09/29/2012	Common Stock	25,000	1.02	D
Stock Option (Right to Buy)	02/15/2001⁽²⁾	09/29/2012	Common Stock	15,000	1.02	D

Explanation of Responses:

1. Immediately following the closing of the inital public offering of the Issuer's Common Stock, all outstanding shares of preferred stock will be redemeed by the Issuer.

2. 25% of the option shares vest and become exercisable on such date with the remaining shares vesting and becoming exercisable in 3 equal annual installments thereafter.

3. This warrant will be automatically exercised for shares of common stock upon the closing of the initial public offering of the Issuer's Common Stock pursuant to the cashless exercise provision contained therein, based on the price to the public in such offering.

	/s/ Andrea Nee	07/08/2003
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 5 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
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