Two important facts about applying dither to a signal prior to it entering the ADC (analogue to digital converter) were discovered recently.
Firstly, the signal to noise (or more accurately, signal to dither ratio) reduces by approximately 5dB, giving a dynamic range of 91dB for a 16 bit system.
Secondly, the perceived dynamic range can actually exceed the theoretical as stated aboved and can actually be more like 115dB for a 16 bit system. This is apparently because low level signal levels can actually be heard below the level of the noise applied? More info in Katz, R (2002) "Mastering Audio: The Art and the Science".
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