Agere Systems, Coding Technologies, Fraunhofer Institute for Integrated Ciruits IIS and Philips, the inventors behind the groundbreaking MPEG Surround technique, jointly demonstrate the full potential of the new Surround Sound system at AES (Audio Engineering Society) Pro Audio Expo in Paris. Combined with an underlying audio codec such as MPEG-1 Layer-2, MPEG-4 AAC or MPEG-4 HE-AAC (aka aacPlus), MPEG Surround fundamentally reduces bit rate requirements for high quality multi-channel audio compression and maintains backwards compatibility to existing stereo equipment at the same time.
This is clearly a press release style post but it points to an interesting development. Must find out more.