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``TCL produced this television specifically for the Chinese New Year buying season,'' stated Mr. Fu Zhong Yang, vice president of Design House, TCL King Electronics. ``We implemented SRS 3D Sound to add a distinct differentiator and make the set more competitive. The market response has been very good and we're now working towards implementing the 3D Sound, and other SRS technologies, in our future products.''

The 2911D stereo color television couples SRS 3D Sound with 5-audio effect modes. In addition, the set boasts a super flat CRT, pull down menu, digital comb filter, flesh tone correction, and an I2C bus control system.

``We're very pleased to welcome the prestigious TCL King Electronics to our licensee base,'' said Tom Yuen, chairman and CEO of SRS Labs. ``China is a huge consumer market with a large appetite for electronics goods, such as televisions and cellular phones. While the recent economic situation in Asia greatly hampered the progress of our initial sales expectations, we believe that as that economy recovers, our existing foundation in Asia, as well as relationships with licensees and leading reference accounts such as TCL, will help us to achieve our objective for this region. We look forward to working with TCL in the future as they continue to expand their usage of our technologies.``

About TCL King Electronics Co., Ltd.

Founded in June 1996, TCL King Electronics is the third largest producer of television sets in Mainland China. The company has doubled its television production every year since 1996 with an estimated 1999 volume in excess of 5 million units. In addition to televisions, TCL manufactures VCD and DVD players, home theater systems, and wall-mounted and digital televisions for the China, South East Asia, US and European markets.

About SRS 3D Sound

SRS 3D Sound is the world's leading 3D audio enhancement technology. With as few as two stereo speakers, SRS broadens the stereo sound image and creates a powerful 3D sound experience from any mono or stereo signal. Developed after years of research on the psychoacoustics of sound and the dynamics of the human hearing system, SRS 3D Sound restores the audio realism that is masked by traditional recording and playback techniques. With SRS, the speakers are no longer the point source for sound. Instead, the music and sound seem to fill the room, immersing the listener.

About SRS Labs, Inc.

SRS Labs is a leading provider of audio and voice enhancement technology solutions. SRS Labs' business consists of licensing audio and voice enhancement technologies to manufacturers of consumer electronics, computer, game and telecommunications equipment, and the design, manufacture and distribution of components, integrated circuits, sub-assemblies and finished products for the consumer electronics and home entertainment markets. For more information on SRS Labs' technologies, the company's worldwide licensing program or its design and manufacturing capabilities, visit the SRS Labs website at http://www.srslabs.com.

SRS and the SRS symbol are registered trademarks of SRS Labs, Inc. in the United States and selected foreign countries. All other brand names mentioned are trademarks or registered trademarks of their respective holders.

Except for historical information contained herein, the matters set forth in this press release, such as the Company's statement in paragraph one regarding TCL King Electronics Co., Ltd.'s intention to ship and include SRS in its 2911D, include forward-looking statements and projections (including statements concerning plans and objectives of management for future operations) that are based on management's belief, as well as assumptions made by, and information currently available to, management.

While the Company believes that its expectations are based upon reasonable assumptions, there can be no assurances that these forward-looking statements or the Company's financial goals will be realized. Numerous factors may affect the Company's actual results and may cause results to differ materially from those expressed in forward-looking statements made by or on behalf of the Company. For example, results may be significantly affected by the ability of TCL King Electronics Co., Ltd. to successfully market the 2911D, the ability of the Company to obtain entry into the China consumer electronics market with SRS and the Company's other audio and voice technologies, and the ability of the Company to finalize pending or expected technology licensing agreements. Additional factors which may affect results expressed in forward-looking statements include the acceptance of new products and technologies related to SRS or the Company's other audio and voice technologies, the impact of competitive products and pricing, the timely development and release of products by suppliers and licensees of the Company, general business and economic conditions, particularly in Asia, and other risks detailed in the Company's Form 10K and Form 10Q statements filed with the SEC.

SOURCE: SRS Labs, Inc.