Jonathan, yes, I believe it does do it. I believe Denon hadn't worked out the licensing issues yet to get the official DD-EX stamp on it so they had to leave it off - but the receiver itself will handle DD-EX Matrix and DTS-ES Matrix.
Even better. You can play back in 5.1 for those few DVD's that have strange EX encoding that makes some rcvrs go nuts. ES discrete is a better feature for now, until the manufacturers get all their ducks lined up.