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Custom Labels in a Managed Package- Namespace?

I've been using Custom Labels in an application I'm building that will be a managed package and I'm wondering if the namespace for the package applies to the labels as well.  I would assume so, but confirmation would appreciated.  I want to make sure I don't have to worry about duplicate Custom Labels once the application is deployed to other organizations.  Thanks in advance to anyone who knows.
Yes, custom labels are namespaced.