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SRS Labs' patented Circle Surround (CS) 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 encoding provides 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.

"We are pleased to continue working with the broadcast industry's most talented and respected engineers such as Rick Larson and Tom Huth to introduce the powerful Circle Surround encoding format," said Mike Canevaro, director of sales, professional audio for SRS Labs, Inc. "Circle Surround's unique ability to provide 5.1 or 6.1 channel playback of mono or stereo content has made it extremely popular with content providers, broadcasters and engineers. We expect Circle Surround will continue to gain momentum as an 'in-demand' technology feature for broadcasting in surround sound."

The company's Circle Surround and CS II decoding technology is rapidly becoming adopted by the world's leading consumer electronics manufacturers and there is a growing number of content providers, such as Paramount/Larson Studios and ESPN who are using CS encoding to bring 5.1 home theater quality sound to audiences worldwide. This encoding format is the optimum surround 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. CS has also 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 Circle Surround technology integrated perfectly into our new stages," said Larson. "The separation in monitoring is exceptional and both Frasier and Becker sound great. Paramount is very pleased and we plan to do their upcoming pilots in Circle Surround. We're very pleased to be standardizing on SRS Circle Surround."

Larson Studios offers the film, television and multimedia industries creative new tools to work with, such as the ability to provide remote collaboration over broadband, including playback of mixes directly from their stages. These systems enable the real time, reliable transmission of high quality video and SRS Circle Surround 5.1 audio between sites a block away, on opposite coasts or on another continent. The facility has paid as much attention to the critical aspect of audio monitoring as it has to new technologies.

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. The company also offers hardware and software tools to professionals and consumers for the production and broadcast of content featuring SRS technologies. SRS Labs' wholly owned subsidiary, ValenceTech, is located in Hong Kong and provides custom ASICs and standard ICs to leading 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. please visit www.srslabs.com . The information on the above-referenced websites is not incorporated by reference into this press release.

Except for historical information contained in this release, statements in this release, including those in paragraphs three 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 economic impact from the current conflict in Iraq and potential related activities, the general market conditions concerning the semiconductor business, the acceptance of new SRS Labs' products and technologies, 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: investor, Tami Yanito, ext. 3093, tami@srslabs.com; or media, Jennifer Drescher, ext. 5010, jenniferd@srslabs.com, both of SRS Labs Inc., +1-949-442-1070.