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Company Also Announces Strategy to Deliver Full Complement of Software Tools for Circle Surround Encoding

Mike Canevaro, director of sales, professional audio for SRS Labs, Inc. states: "Circle Surround has been very well received in professional broadcasting and post-production. Broadcasters have been thrilled with the superior performance that CS brings to the table. We have been listening to what the industry needs and I believe our upcoming encoding tools are going to significantly improve the way 5.1 or 6.1 audio is produced and delivered."

Since many of today's professional audio engineers are using PCs and digital workstations in the production and post-production of audio/video material, SRS Labs recognizes the need for software tools to make Circle Surround encoding more broadly available to content producers and engineers. Over the coming months, SRS Labs expects to unveil software products and plug- in tools that support the leading production software standards, such as TDM/ProTools, VST and Windows Media Encoder.

The patented Circle Surround technology is a highly versatile, multichannel audio encode and decode system capable of supporting a wide range of surround sound creation and playback applications. CS hardware and software encoders can encode up to 6.1 channels of discrete audio for distribution over existing two-channel carriers such as broadcast television, cable, streaming media over the Internet, CDs and VHS tapes. Over the past year, SRS Labs has cultivated relationships with major broadcasters and content providers, such as ESPN Productions, Paramount and ABC Sports, to telecast their sporting events and television programs in Circle Surround.

Circle Surround II decoding is capable of delivering up to 6.1 channels of audio from mono, stereo, matrix encoded or CS encoded source material. CS II features patented post-processing techniques to enhance the surround sound experience, including SRS Dialog Clarity(TM), which improves the intelligibility and clarity of center channel information such as dialog, and SRS TruBass®, which uses patented psychoacoustic techniques to increase bass performance from any playback system, including a subwoofer. CS has been adopted by many of the leading electronics companies as a surround decoding option, including Kenwood, Marantz, Theta Digital, Accuphase, M-Audio, Jaton, and Smart Devices. It is the most powerful, flexible and feature-rich surround decoding format available today.

The CSE-07 is a professional reference-standard hardware platform for premium encoding of 5.1 or 6.1 channel content that is delivered over any two- channel medium, such as broadcasting, Compact Disc, and Internet streaming. The CSD-07 is the first professional 6.1 channel matrix decoder designed for monitoring audio, video, and multimedia programs encoded with Circle Surround and other matrix encoding systems. Both the CSE-07 and CSD-07 are available now through selected dealers.

    Seminars in SRS Labs' Booth SU4857 - South Hall at the LVCC include:
    *  Post Production for Television -- Tom Huth, 11 time Emmy winning audio
       mixer for NBC's "Frasier" and CBS' "Cheers", delivers his shows in
       Circle Surround each week and will be holding two seminars on
       optimizing your mix for Circle Surround in a post production facility
       on Monday April 7th -- 11AM and 3PM.

    *  Live Entertainment -- Ed Greene, 16-time Emmy winning mixer for the
       Grammy and Academy Award broadcasts. Stop by at 11AM on Tuesday
       April 8th to hear a live demonstration and speak to Ed in person.

    *  Music CDs -- Gary Baldassari, engineer for over 60 jazz albums, will be
       releasing 10-12 CDs in the next year that have been encoded in
       SRS Circle Surround.  Watch as he demonstrates the flexibility and
       power of the Circle Surround system for Compact Discs at 3PM on Tuesday
       April 8th.

    *  Sports Broadcasting -- Ron Scalise, ESPN audio consultant and 12 time
       Emmy winning mixer for NASCAR, X-Games, NBA and NFL telecasts on ESPN
       and ABC, uses Circle Surround to deliver the most realistic home
       theater experience possible for his sports mixes. Hear why he has
       standardized with Circle Surround on Wednesday April 9th at 3PM.

NAB2003 takes place April 5-10 in Las Vegas (exhibits open April 7). It is the world's largest electronic media show covering the development, delivery and management of professional video and audio content across all media. Complete NAB2003 details are available at www.nab.org/conventions/nab2003.

About SRS Labs Inc.

Celebrating a decade in audio technology innovation, SRS Labs has become a recognized leader in the advancement of audio and voice technology. The company works with the world's top manufacturers to provide a richer entertainment experience through patented sound techniques. SRS technologies can be heard through products ranging from televisions, DVD players, and cell phones to car audio systems and computers. Through its SRSWOWcast subsidiary, the company offers hardware and software tools to professionals and consumers for the production of content featuring SRS technologies. SRS Labs' wholly owned subsidiary, ValenceTech, is located in Hong Kong and provides custom ASICs and standard ICs to top manufacturers worldwide. Based in Santa Ana, Calif., the company also has licensing representation in Hong Kong, Japan, Europe, and Korea. For more information about SRS Labs, Inc. or SRS technologies, please visit www.srslabs.com. The information on the above- referenced websites is not incorporated by reference into this press release. Other product or service names mentioned herein are the trademarks of their respective owners.

Except for historical information contained in this release, statements in this release, including the statements in paragraphs two and three and the statements regarding the expected release of CDs encoded in Circle Surround 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 the acceptance of new SRS Labs' products and technologies, the actual timing and release of CS-encoding software products and plug-in tools, the timing and quantity of CS-encoded CDs to be released in the next year, 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 risks detailed in the Company's Form 10-K and other periodic reports filed with the SEC.

For further information, please contact: Jennifer Drescher of SRS Labs, Inc., +1-949-442-1070 x 5010, jenniferd@srslabs.com