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Award Winning Home Theater Speakers Designed to Target New Lifestyle Market

Developed by the original inventor of the company's namesake SRS technology, Arnold Klayman, these new speakers not only boast dynamic, immersive sound quality, but also feature a sleek, thin flat panel design. Targeted at the rapidly expanding home theater market, SRS Labs' new speaker offerings include floor-standing with polished wood or aluminum finishes; a wall mount design weighing less than two pounds and tailored for flat panel displays; and sleek compact bookshelf models.

SRS Labs' new Klayman Signature, Prestige and Eva speaker lines are based on new flat panel technology that delivers full, rich, clean sound from a design that is less than 3 inches in depth. The company's AcouStix line is based on innovative cone drivers, which are ultra-thin with lightweight aluminum enclosures that make it the perfect speaker companion to LCD or plasma video displays. To complete the home theater system, SRS Labs is offering center channel speakers and subwoofers. The SRS Center Speaker, also based on SRS Labs' new flat panel technology, reproduces crystal-clear dialog in an enclosure that is less than 3 inches in depth. The final component of the new speaker products is the SRS TruBass® Subwoofer that utilizes patented SRS TruBass audio technology that restores the low frequencies that exist in the original material to greatly improve the bass response and achieve thundering bass from any size speaker system. Speaker demonstrations will be held by appointment only in meeting room N215 at the Las Vegas Hilton from January 9-12.

Thomas C.K Yuen, chairman and CEO of SRS Labs said, "The introduction of these new speaker lines is the culmination of many months of development. We are extremely excited to enter this exciting product category with such unique designs and awesome audio capabilities, which SRS Labs has become synonymous with. This is a tremendous opportunity to demonstrate our technical prowess in the audio field through the introduction of these ergonomic home theater speakers designs, as well as strengthening our brand awareness in the consumer sector with these product offerings."

Klayman Signature

The Klayman Signature Series were created to be sleek, stylish and elegant while utilizing uniquely crafted flat panel drivers to immerse you in pure sound without invading your space. They are available in black ash or cherry wood veneer finishes. The speaker stands 41" high and 17" wide, with a speaker depth of 3" at its thickest point. With aluminum enclosure and frame, it weighs 32.5 lbs, has 2HDC driver panels, frequency response of 80Hz-20kHz +/-3dB, sensitivity of 91dB @ 1 watt/1 meter (both) and recommended amplifier power of up to 100 watts.

Prestige

The Prestige Series deliver clean lines with an even cleaner sound. These flat panel floor-standing speakers measure less than 3" deep and are available in two configurations to suite a variety of tastes -- single or dual panel. They are available in black or silver aluminum finishes. The speakers stand 41" high and 15" wide, with a speaker depth of 2" at its thickest point. With aluminum enclosure and frame, the solo weighs 18.4 lbs and the duet weighs 19.8 lbs, with one or 2 HDC driver panels, frequency response of 80Hz-20kHz +/-3dB (dual), 125Hz-20kHz +/- 3dB (solo), sensitivity of 91dB @ 1 watt/1 meter (both) and recommended amplifier power of up to 100 watts for the duet and up to 50 watts for the solo.

Eva

The remarkably thin Eva Series speakers are made with brushed aluminum trim and flat panel profile cabinets that give the Eva speakers a distinctive and stylish edge over traditional mid-size speakers, while delivering a spectacular sound. These versatile speakers can be placed on a bookshelf or hung on the wall. They are available in black or silver aluminum finishes. The speakers stand 8.6" high and 24.1" wide, with a speaker depth of 2.85" at its thickest point. With aluminum enclosure and frame, the speaker weighs 12 lbs, and has 1 HDC driver panel, frequency response of 100Hz to 20kHz, sensitivity of 85dB @ 1 watt/1 meter and recommended amplifier power of up to 100 watts.

AcouStix

Weighing in at less than 2 pounds, the AcouStix series speakers provide the ultimate surround sound experience. Available in multiple configurations, these ultra thin AcouStix are SRS Labs' most versatile speaker system. The floor, bookshelf and wall-mount speakers are tailored for flat panel displays, but are perfect for any home theater. They are available in black or silver aluminum finishes. The speakers stand 42.3" high (floor model), 16.5" (console), 16" (wall mount) and 2.11" wide, with a depth of 1.35". With aluminum ported enclosure, the speaker weighs 7 lbs (floor), 5.5 lbs (console), 1.5 lbs (wall mount) and has frequency response of 150Hz to 20kHz +/- 3dB, sensitivity of 87dB @ 1 watt/1 meter and recommended amplifier power of up to 50 watts.

Center Speaker

The SRS Center Speaker was engineered to faithfully reproduce crystal clear dialog and is the center speaker of choice for the Klayman Signature and Prestige speakers. Delivering clean and realistic center channel information, the SRS Center Speaker is the ideal addition to any home theater system. The speaker is available in black or black with silver finishes. The speaker stands 8.6" high, 24" wide (large model), 15" wide (small model) with a depth of 2.85". With aluminum enclosure and open frame, the speaker weighs 10 lbs (large), 8.5 lbs (small), and has 1 and 2 HDC driver panels, frequency response of 100Hz to 20kHz +/- 3dB, sensitivity of 97dB @ 1 watt/1 meter and recommended amplifier power of up to 50 watts.

TruBass® Subwoofer

The powered TruBass Subwoofers provide heart-pounding bass utilizing advanced designs and SRS Labs' patented TruBass technology. This unique technology restores the low frequencies that exist in the original source material and greatly improves the bass response, while ensuring natural and realistic bass that explodes into your living room. The subwoofer is available in 8 and 10 inch versions with black vinyl finish. The cabinet dimensions are W 12.25" x H 17" x D 19" (10 inch version) and W 14.57" x H 13.78" x D 15.35" (8 inch version). With bottom-firing enclosure, the speaker weighs 41 lbs (10 inch), 21 lbs (8 inch), and has frequency response of 20Hz to 300kHz (10 inch), 40Hz to 300Hz (8 inch), and recommended amplifier power of up to 115 watts @100Hz (10 inch), 80 watts peak power @ 100 Hz (8 inch).

Pricing and Availability

Estimated retail pricing for single SRS speakers are as follows: Klayman Signature, $499.99; Prestige, $299.99-$399.99; Center Speakers, $199.99-249.99; Eva $199.99 (single) to $999.00 (5.1 package); AcouStix, $199.99-$249.99; and TruBass Subwoofer, $199.99-$249.99. The Klayman Signature Series and 10 inch TruBass Subwoofer are expected to soon be available through selected retail stores and directly through the company. The Prestige and Center channel speakers are expected to become available by the end of Q1 and the Eva and AcouStix series are expected to be available in Q2.

For more information about SRS Labs' participation at CES or to arrange an appointment for a demonstration at the CES show, please call Jennifer Drescher at (714) 235-2239 or for more information about SRS Labs' speakers, please visit www.srsspeakers.com/speakers /.

About CEA

The Consumer Electronics Association (CEA) represents more than 1,000 corporate members involved in the design, development, manufacturing, distribution and integration of audio, video, mobile electronics, wireless and landline communications, information technology, home networking, multimedia and accessory products, as well as related services that are sold through consumer channels. Combined, CEA's members account for more than $80 billion in annual sales. CEA's resources are available online at www.CE.org , the definitive source for information about the consumer electronics industry. CEA also sponsors and manages the International CES - Defining Technology's Future. All profits from CES are reinvested into industry services, including technical training and education, industry promotion, engineering standards development, market research and legislative advocacy.

About SRS Labs Inc.

SRS Labs, Inc. ( www.srslabs.com ) and its subsidiaries provide advanced technology solutions for high growth consumer markets, including home theater, DVD, portable audio, wireless devices, game consoles, automotive, broadcast, Internet and personal computer software. SRS Labs, the parent company, develops the core audio and voice technologies and licenses these patented technologies to over 200 well-known manufacturers and semiconductor companies, including Sony, RCA, Panasonic, Philips, Kenwood, Mitsubishi, Hitachi, Microsoft, and Pioneer. ValenceTech, Ltd., ( www.valencetech.com ) SRS Labs' Hong Kong-based subsidiary, is a leading fabless application specific integrated circuit (ASIC) design and manufacturing company providing analog and digital ASIC solutions to the world's leading manufacturers of consumer electronics, gaming, telecommunications and computer products. SRS Labs' subsidiary, SRSWOWcast Technologies, ( www.srstechnologies.com ) focuses on the Internet and broadcast markets by developing and licensing customized hardware and software products incorporating SRS Labs' patented technologies. The information on the above-referenced websites is not incorporated by reference into this press release.

Statements in this release 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. Some of these factors include market acceptance of the company's speaker products, actual timing and availability of the speakers directly from the company and through select retailers, the impact of competitive products and pricing, the timely development and release of technologies by the Company, general business and economic conditions, especially in Asia, and other factors 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.

For further information, please contact investors, Tami Yanito, +1-949-442-1070, ext. 3093, tami@srslabs.com, or media, Jennifer Drescher, +1-714-235-2239, jenniferd@srslabs.com, both of SRS Labs, Inc.