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With Several Manufacturers Launching New 2003 TV Models Featuring SRS Labs' Patented Technologies, The Company Extends Its Market Penetration Encompassing Over 20 of the World's Top TV Makers

According to the Gobi International, in 2003, the global production of televisions is expected to reach over 228 million units. Will Strauss from Forward Concepts states, "With the advent of new high definition and plasma display models, there is an increasing importance placed on the audio quality of TVs. From 2002 to 2007, the market for HDTV alone is expected to grow at a compound annual growth rate (CAGR) of 58.7 percent. Demand for better audio will far exceed this growth rate."

SRS Labs' technology solutions for television manufacturers encompass a wide range of audio techniques that overcome many sound deficiencies associated with TVs, such as speakers that are too close together, limited speaker size, muffling of dialog and location of the speakers close to the floor. Additionally, SRS Labs' technologies for the TV market includes surround sound over two speakers, or a 5.1 surround decode technology that can be used by manufacturers of home theater-in-a-box systems that include a television.

For TV manufacturers, SRS Labs has the broadest chip platform coverage of its technology solutions with both analog and digital chip solutions available from leading semiconductor suppliers, such as: AKM, Analog Devices, LG Electronics, Micronas, NJRC, Philips, ST Microelectronics, Toshiba, ASP Microelectronics, and Renesas (formerly Mitsubishi Electric). SRS Labs' technologies address all types of television products, from standard analog color and black and white models to the latest advanced projection, LCD, plasma and HDTV (high definition television) sets.

SRS Labs offers a complete suite of technology solutions for improving the audio performance of TVs:

     -- SRS Labs' namesake technology, Sound Retrieval System(R) (SRS) is one
        of the world's leading 3D sound enhancement technologies.  Due to the
        width of some of the small television sets, the speakers may have very
        little separation.  SRS widens the sound field to appear as though the
        speakers are further apart.

     -- Speaker size is limited by the size of the TV casing.  Small TV
        speakers will have low frequency limitations resulting in poor bass.
        TruBass(R) restores the perception of fundamental low frequency tones
        by dynamically augmenting harmonics, resulting in a deep rich bass.
        The use of TruBass can also displace a subwoofer; thereby reducing
        component and labor cost.

     -- In order to increase the screen size but keep the overall footprint to
        a minimum, many TV models include the speakers under the screen close
        to the floor, which creates a less than optimal listening effect.
        FOCUS(R) allows manufacturers to electronically elevate the sound
        image from the actual placement of the speakers to the center of the
        screen, creating a more natural and realistic audio experience.

     -- Understanding the dialog is often difficult in action sequences and
        other types of programming that seem to mask the vocal or center
        channel information.  SRS Dialog Clarity(TM) applies a unique
        processing to the center channel information that addresses this
        problem and significantly improves dialog intelligibility form all
        source material using only the two internal speakers of a television.

     -- The company's WOW(TM) technology is a combination of SRS Labs' SRS,
        TruBass and Dialog Clarity technologies in one optimized solution for
        the ultimate enhancement of mono or stereo television models.  WOW
        compensates for the limitations inherent in the smaller speakers that
        are usually found in televisions by providing a panoramic audio image
        that extends the sound in both the vertical and horizontal planes and
        creates the perception of deep rich bass.

     -- The company's patented TruSurround(R) and TruSurround XT(TM)
        technologies provide a virtual surround sound experience over two
        speakers from any multichannel audio source.  With the increasing
        popularity of DVD players and the growing library of surround sound
        television programming, more and more content is delivered in surround
        sound, but the majority of households in the U.S. do not have a
        multi-speaker home theater playback system.  With TruSurround and its
        next generation TruSurround XT, television viewers have the ability to
        enjoy a powerful surround sound type experience from either the
        internal television speakers or a two-speaker stereo playback system.

     -- Circle Surround(R) is a powerful surround decoding technology that
        creates up to 6.1 channels of surround sound from mono or stereo
        content.  Circle Surround is the perfect solution for TV manufacturers
        who want to offer a 5.1 multi channel decoder within their set.  Using
        this technology, users with a full home theater system can enjoy a
        rich cinema-like experience through their televisions.

"SRS Labs offers TV manufacturers the most powerful and flexible audio technology portfolio that is available today," said Ted Franceschi, executive vice president licensing and general manager for SRS Labs. "We have partnered with the world's leading chip suppliers to make these technologies available in both analog and digital formats. The powerful combination of our technology offerings and our broad chip solutions has resulted in SRS Labs becoming the leader in audio enhancement technologies for TVs worldwide. We are very pleased with our progress in this high volume market and look forward to continuing to work with our TV licensees to bring the latest advancements in audio technology to buyers of televisions around the world."

    Name brand TVs featuring SRS Labs' technologies:

     -- Hitachi incorporates TruBass and TruSurround in various plasma,
        projection and direct view TV models

     -- Loewe implements SRS Circle Surround multichannel technology in its
        top of the line color TV for the European market

     -- Mitsubishi features SRS TruSurround in both its color TVs and plasma
        TVs

     -- Pioneer just announced the introduction of two new high definition
        plasma TV models featuring SRS WOW

     -- Sharp includes SRS 3D in its 27", 32" and 36" flat picture TVs, as
        well as SRS 3D and FOCUS in several models of their new LCD line

     -- Skyworth features TruBass and WOW in its 25", 29", 34", 38" color TVs
        and SRS 3D in its LCD TVs

     -- Sony recently launched seven new LCD television models, five direct
        view models and a plasma TV model featuring SRS Labs' WOW and/or
        TruSurround technologies.  SRS Labs' technologies can also be found in
        over 25 different models of direct view, projection and flat panel TVs
        from Sony

     -- RCA/Thomson includes TruSurround, SRS 3D, and FOCUS in its projection
        TVs and TruSurround XT in its digital TVs

     -- Toshiba recently launched two CTV, three LCD and eight new projection
        TVs that include SRS Labs' SRS 3D or WOW sound enhancement for
        creating a full, rich audio experience.  TruSurround, WOW, TruBass and
        SRS 3D features can also be found in various flat panel, project and
        color TVs from Toshiba

     -- Zenith/LG plans to launch several new digital TV models featuring
        TruSurround XT

     -- and many more ...

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 Labs' technologies can be heard through products ranging from televisions, DVD players, cell phones, 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 Labs' 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 by Mr. Franceschi in paragraph five 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 continued growth and technology advancements in the TV market, the ability of SRS Labs to continue developing new technologies for the TV market, 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