In 1987, the Fraunhofer IIS started to work on perceptual audio coding in the framework of the EUREKA project EU147, Digital Audio Broadcasting (DAB). In a joint cooperation with the University of Erlangen (Prof. Dieter Seitzer), the Fraunhofer IIS finally devised a very powerful algorithm that is standardized as ISO-MPEG Audio Layer-3 (IS 11172-3 and IS 13818-3).