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First Sports Properties Telecast in Circle Surround Include ESPN’s NFL and NBA Games;
SRS Labs’ Circle Surround Logo Displayed to Millions of Sports Fans

Circle Surround is an optimum surround encoding solution for television because it enables networks to encode up to 5.1 channels of discrete program material for transmission over existing stereo production/distribution infrastructure with no modifications. Circle Surround technology is also the only surround sound format that can encode 5.1 channels of surround sound for transmission using any two-channel medium.

"ESPN is happy to deliver the Circle Surround 5.1 technology to our viewers to further enhance the viewing experience for our fans," said Donald Colantonio, Jr., ESPN coordinating director, remote production.

"We are pleased ESPN will use our Circle Surround professional audio encoder on NFL and NBA telecasts and look forward to working closely with them on additional events," said Thomas C.K. Yuen, chairman and CEO of SRS Labs. "Circle Surround is a high quality, powerful technology that is universally compatible with current production/distribution infrastructure -- making immediate delivery of 5.1 channel content possible to audiences around the world."

Yuen continued, "This new relationship also provides tremendous brand exposure for SRS Labs through the display of our CS logo to millions of viewers. As a licensing company, our ultimate goal is to license our technologies to manufacturers of home theater products. Televising CS-encoded material is an important element in this strategy."

An important point for telecasters is the fact that CS encoding is backward compatible with other matrix surround decoders subject to the limitations of the specific decoder. This flexibility means that CS-encoded sports programming is compatible with any system viewers may own, from the use of a television's internal speakers to a full home theater installation. However, for the ultimate experience in surround sound playback, it is recommended that home theater enthusiasts use a surround sound receiver that includes either Circle Surround or our premium Circle Surround II decoding, available from manufacturers such as Kenwood and Marantz. CS II not only creates up to 6.1 channels of superior sound, but also includes SRS Labs patented techniques to provide dialog (center channel) enhancement and high quality bass enhancement.

About the CSE -07

The CSE (Model CSE-07) Circle Surround Pro Encoder enables audio professionals to encode up to 6.1 channels of discrete program material (Left, Center, Right, Left Surround, Center Surround, Right Surround, LFE) for transmission via any consumer stereo medium. It delivers a remarkable "home theater" audio experience at bandwidths as low as 44 kpbs. CS-encoded material is backwards compatible with the standard consumer audio formats (from mono to Dolby Pro Logic II(R)).

About SRSWOWcast Technologies

SRSWOWcast Technologies ( www.srstechnologies.com ) is the Internet and broadcast subsidiary of SRS Labs, Inc., ( www.srslabs.com ) one of the world's leading providers of advanced and patented audio and voice enhancement technologies. With exclusive Internet and broadcasting rights to SRS Labs' intellectual property portfolio, SRSWOWcast Technologies develops and licenses audio and voice technology solutions for Internet streaming, on-demand material, online radio, as well as for traditional television broadcasting and cable transmission.

Except for historical information contained in this release, statements in this release, including those of Mr. Yuen in paragraph four are forward- looking statements and projections (which include 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 the Company's goals and strategy will be realized. Numerous factors (including risks and uncertainties) 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. These factors include the general market acceptance of CS encoding on television telecasts, ESPN's desire to expand its portfolio of surround sound broadcasts, impact of competitive broadcast systems, general market conditions and the timely development and release of technologies by the Company. Other factors are detailed in the Company's Form 10-K and other periodic reports filed with the SEC. SRS Labs specifically disclaims any obligation to update or revise any forward-looking statement whether as a result of new information, future developments or otherwise.

(C) Copyright 2002, SRS Labs & SRSWOWcast, All Rights Reserved. SRS, Circle Surround and the SRS symbol are trademarks of SRS Labs, Inc. All other brand names mentioned are trademarks or registered trademarks of their respective holders. Other product or service names mentioned herein are the trademarks of their respective owners.

For further information, please contact Tami Yanito of SRS Labs, Inc., +1-949-442-1070, ext. 3093, tami@srslabs.com.