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NewQ Equalizers Use SRS 3D Sound and TruSurround to Deliver Rich
                and Emmersive Sound to Multimedia Applications

"The SRS technologies are the heart of these products," states Nelson Lee of NeoWave. "For the NewQ 1379, SRS 3D Sound retrieves the spatial information from recordings and restores them to their original 3D sound field. In the NewQ GOLD, TruSurround provides stunning virtual audio for PC Home Theater Systems in an after-market solution. In both instances, SRS Labs' technologies added the punch and realism we were seeking for these peripheral devices."

Thomas Yuen, Chairman and CEO of SRS Labs adds, "With PC manufacturers focusing on cutting cost, many of the value-added features, including audio enhancement, are falling by the wayside. This situation has resulted in new opportunities for after-market accessories like the NewQ products and we see a definite market shift from the traditional 'built-in' sound implementations to new 'add-on' peripherals. We anticipate this market building momentum as the Internet and other multimedia applications become strongholds in our daily lives."

The NewQ 1379 is a real-time 7-band equalizer that livens up the sound performance on PCs creating crisp, clear 3-dimensional sound. As a universal peripheral, the NewQ 1379 is 100% compatible with all sound cards and PC systems. NewQ 1379 is available for an MSRP of $59.99.

The NewQ GOLD is the next generation equalizer supporting digital audio with SRS Labs' TruSurround technology. NewQ Gold remixes the 5.1-channels of Dolby Digital (TM), which is the standard audio format of DVD, for playback on two traditional speakers -- without degradation of surround sound performance. Users can experience deep, rich surround sound from their multimedia applications including music, MPEG video, games, Internet audio and DVD movies through the two standard speakers installed on their PC. The NewQ GOLD will be available in June 1999.

Both NewQ products are available for delivery from NeoWave and NewQ System, Inc. http://www.newq.co.kr.com

About TruSurround
TruSurround takes advantage of the multi-channel standard audio format of DVD, Dolby Digital. While digital sound brings unparalleled quality, a consumer must have multiple speakers in order to take full advantage of the 5.1 separate audio channels of Dolby Digital. SRS Labs realizes that this is not always an option and that sometimes it is difficult to surround an individual with six separate speakers, especially in the computer environment. To overcome this challenge, SRS Labs developed TruSurround which processes the 5.1 discrete channels of digital audio into just two channels, retaining all of the original audio information and giving the listener the perception that they are surrounded by additional "phantom" speakers. With its heritage traced to the patented Head Related Transfer Function-based (HRTF) SRS technology, TruSurround envelopes the listener in the most sensational two speaker sound ever experienced.

About SRS Labs, Inc.
SRS Labs is a leading provider of audio and voice enhancement technology solutions. SRS Labs' business consists of licensing 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, the SRS symbol and TruSurround 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. SOURCE SRS Labs, Inc. Web site: http://www.srslabs.com CONTACT: Jennifer A. Drescher, Director of Marketing of SRS Labs, Inc., +1 949-442-1070, ext. 5110, jenniferd@srslabs.com IN: CPR