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The Theater 2000 Provides Sensational Two Speaker Virtual Surround Sound From Any Home Theater or Stereo System

TruSurround is included in many of the world's leading home theater products, including DVD players from Philips and Pioneer, digital televisions from Sony and home theater receivers from Pioneer. The Theater 2000 from Spectrum Research is the first TruSurround 'add-on' product that in conjunction with SRS 3D Sound provides a truly awe-inspiring dimension to any pre-recorded or live audio/video performance, whether it is in stereo or a multi-channel surround.

``SRS Labs' TruSurround and 3D Sound technologies were the perfect choice for our Theater 2000 application,'' explained John Robinson, president and CEO of Spectrum Research. ``Our goal was to deliver a product that could vastly improve audio performance, and the Theater 2000 does just that. It is easy to connect and easy to use and can greatly enhance the sound of just about any system. We're excited to get these units into the hands of consumers worldwide and are certain they will give the general public a great appreciation of the benefits of superior audio.''

``TruSurround's market acceptance is growing exponentially as consumers demand greater performance from their home theater, stereo, and multimedia systems,'' states Thomas Yuen, chairman and CEO of SRS Labs. ``With 86% of US households owning stereo or home theater systems, after-market accessories like the Theater 2000 will address a market niche with considerable pent-up demand. The sound quality Spectrum Research has attained is truly impressive and consumers worldwide will appreciate this new level of sound realism. We welcome Spectrum Research to our esteemed family of customers and look forward to a long partnership.''

About TruSurround

TruSurround takes advantage of the many multi-channel audio sources for music and film soundtracks such as DVD's Dolby Digital (AC-3), Dolby Pro Logic, and Circle Surround. For applications where only two speakers are available, such as two speaker home theater systems, televisions and computers, TruSurround provides a means of enjoying an immersive and stunning surround sound experience from just these two speakers. TruSurround re-mixes up to six channels of surround sound information into a two-speaker output, while retaining all of the original spatial information and giving the listener the perception that they are surrounded by additional ``phantom'' speakers. As implemented in the Theater 2000, the user can change the listening mode to SRS 3D Sound, creating a panoramic 3D sound experience from any stereo input. The combination of these two technologies allows consumers to enjoy a cinema-style home theater experience from any audio/video source, including TV broadcast, CDs, VCR tapes or DVDs.

About Spectrum Research

Spectrum Research Inc., headquartered in Sarasota, Florida is a research, engineering and development firm specializing in advanced commercial and consumer electronics. Additional information on the Theater 2000 product can be found via the World Wide Web at http://www.theatersound.com.

About SRS Labs, Inc.

SRS Labs is a leading licensor and provider of audio and voice enhancement technologies. SRS Labs' business consists of licensing technologies to manufacturers of consumer electronics, computer, game, automotive and telecommunications equipment; and the design, manufacture and distribution of components, integrated circuits, sub-assemblies and finished products for these markets. For more information on SRS Labs' technologies, the Company's worldwide licensing program or its design and manufacturing capabilities, visit the SRS Labs web site 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. Theater 2000 is a trademark of Spectrum Research. 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 statements of Mr. Yuen in paragraph four and the Company's statement in paragraph one regarding Spectrum Research's intention to ship and include TruSurround in its Theater 2000 Processor, 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 Spectrum Research to introduce and successfully market the Theater 2000, the ability of the Company to obtain entry into the multi-channel product arena with TruSurround, 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 TruSurround, 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.