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Seven New Models of Marantz' 2003 Line Feature SRS Circle Surround II to Create up to 6.1 Channels of Surround Sound From Mono, Stereo and Circle Surround Encoded Audio Material

Kevin Zarow, director of marketing for Marantz said, "Our latest receivers with CS II showcase our longstanding tradition to feature the most advanced technology features in our products. We are proud to continue to work with SRS Labs to bring their versatile, next generation surround sound technology to our customers."

"We are pleased to see our CS II technology being adopted by superior brand names such as Marantz for their high performance receivers," said Ted Franceschi, general manager and executive vice president for SRS Labs. "Circle Surround's unique ability to provide 5.1 or 6.1 channel playback of mono or stereo content has made it popular with content providers and broadcasters. We expect Circle Surround will continue to gain momentum as the next 'must-have' technology feature for the home theater."

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 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 technology 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.

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 the impact of competitive encode/decode formats for home theater and the acceptance of Circle Surround as a standard in the marketplace, 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: investors, 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.