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Circle Surround is an encode/decode surround sound system. It is the optimum 5.1 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. Because CS is compatible with all listening formats, a CS-encoded signal will enable the viewer who has a 5.1 home theater system to enjoy surround sound, and also provide a backward compatible listening experience with mono or stereo systems. Brands of home theater and convergence products that feature Circle Surround decoding for the ultimate enjoyment of surround sound telecasts include Accuphase, Kenwood, Marantz, Orion Studios, SRS Labs, and Theta Digital.

"ESPN has a reputation as a technology leader in sports and we are thrilled that they are continuing to use our Circle Surround technology," said Thomas C.K. Yuen, chairman and CEO of SRS Labs. "With increasing availability of CS-encoded content and continued growth of CS-decoders, we are maximizing recognition of Circle Surround as a superior 5.1 multichannel technology."

Home theater systems with surround sound are significantly enhancing the experience for sports watchers. According to a recent survey from global trade organization, CEDIA, 75 percent of those who expected to tune into the Super Bowl last Sunday said their viewing experience would be significantly enhanced if viewed on a home theater system. A home theater includes a wide- screen television with movie-picture quality, surround sound, lighting and oftentimes, theater-style seating. According to Parks Associates, a market research firm devoted to emerging residential technologies, 22 percent of Americans have home theaters in their homes.

More information on Circle Surround technology and the products available with CS can be found at http://www.srslabs.com/CSBroadcast.asp . Content producers and audio professionals interested in purchasing professional Circle Surround encoder and decoder hardware, can visit http://www.srstechnologies.com/srstech_Multichannel.asp or contact Mike Canevaro, mike@srstechnologies.com or phone 949-442-1070.

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.

For further information, please contact: Investors, Tami Yanito, ext. 3093, tami@srslabs.com, or Media, Jennifer Drescher, ext. 5110, jenniferd@srslabs.com, both of SRS Labs, Inc., +1-949-442-1070.