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PacketVideo Integrates SRS WOW(TM) 3D Audio Enhancement Technology for Embedded Devices

WOW is an invaluable technology solution for audio-enabled mobile phones because it provides a dramatically wide, three-dimensional sound image with deep, rich bass over small speakers and headphones. WOW utilizes patented psychoacoustic audio techniques to significantly improve the sound of polyphonic ring tones, gaming sound effects, multimedia, video and digital audio on mobile phones.

By enabling the WOW technology on their handsets, mobile phone OEMs can now deliver a spacious, natural and immersive 3D audio listening experience. To compensate for the poor bass performance inherent in small speakers and headphone drivers, WOW also includes a patented bass enhancement technology that overcomes the physical limitations of the small speakers or headphones and creates a deep, rich low-frequency performance. For the newer stereo speaker-enabled mobile phones, WOW provides the industry's most extreme stereo width from polyphonic ring tones and digitally compressed music such as MP3, WMA and AAC formats.

"SRS Labs' audio enhancement technologies enable the listener to perceive a three dimensional sound field from two closely-spaced small speakers or headphones, making the audio listening experience sound much more realistic and natural," said Alan Kraemer, SRS Labs' executive vice president of technology. "We've spent the past 10 years working with consumer electronics and home theater manufacturers to ensure product designs deliver the best possible audio experience. Now, working with leading mobile handset makers and partners such as PacketVideo, we are applying these techniques to mobile devices. The improvement that our audio technologies provide to these products is very dramatic and provides significant value to wireless service providers and handset manufacturers as they roll out new multimedia services to the market."

"Mobile handsets have to compete with many other forms of multimedia entertainment devices, so audio quality is more important than ever," said Joel Espelien, PacketVideo vice president for strategic relationships. "Every handset has a unique combination of hardware, software and network parameters, and with SRS Labs' world class audio technology and PacketVideo's unsurpassed mobilemedia expertise, we can offer OEMs outsourced custom software solutions to deliver never-seen-before audio-visual quality."

PacketVideo Device Solutions offer OEMs a suite of innovative embedded products, including pvAuthor(TM), pvCamcorder(TM), pvPlayer(TM), Recorder(TM) and pv2way(TM) along with outsourced embedded engineering expertise that allows handset manufacturers to quickly and cost-effectively bring products to market with customized encoding, decoding, and 2-way video conferencing capabilities.

PacketVideo Device Solutions are embedded in handsets from Sony Ericsson, Motorola, Fujitsu, Siemens, NEC, Sagem, Nokia and others. Notably, Sony Ericsson engaged PacketVideo to deliver the multimedia functionality in their P800 smartphone, including video streaming, digital camera image capture and viewing, and digital audio playback that supports leading formats.

"PacketVideo's mission is to deliver the highest quality outsourced multimedia solutions to our OEM customers," said Dr. James Brailean, Ph.D., chief executive officer of PacketVideo. "We are delighted to work with SRS Labs because they have an unsurpassed approach to delivering high-quality audio. Our partnership combines the best in PacketVideo mobilemedia software solutions with the best in SRS audio technologies to deliver superior quality multimedia solutions to mobile handset manufacturers."

"PacketVideo's knowledge of handset firmware, their success as a key outsourced solution provider for leading handset OEMs, and commitment to delivering the best video and audio experience on mobile devices made it clear to us that together we can deliver important audio/video solutions to mobile phone manufacturers worldwide," said Ted Franceschi, executive vice president of licensing and general manager for SRS Labs. "As more mobile phones and wireless service providers roll out multimedia services and features such as music playback, video streaming and even digital broadcast reception, we see a growing opportunity for our solutions to deliver the best possible audio experience to wireless subscribers."

Demonstrations of PacketVideo Device Solutions fully integrated with SRS WOW will be shown at the CTIA Wireless IT and Mobile Entertainment show in Las Vegas on Oct. 21-23 in SRS Labs' booth 1033-R within the M-tertainment pavilion. Commercial solutions will be available for licensing directly from PacketVideo in the first quarter of 2004.

About PacketVideo Device Solutions

PacketVideo Device Solutions are highly optimized, custom embedded products, based on a modular architecture for rapid design, implementation, and integration of mobilemedia features into leading hardware platforms and operating systems. PacketVideo Device Solutions improve performance while reducing processor, memory, and battery consumption, and have passed rigorous interoperability and functional testing procedures worldwide. These standards-compliant multimedia solutions are proven in the marketplace, having achieved widespread commercial adoption by leading software, handset and silicon vendors. PacketVideo technology is air-interface independent and operating system agnostic, which means it runs on all wireless systems including CDMA One, CDMA 2000, WCDMA, GSM, UMTS, TDMA, GPRS, CDPD, PHS and others.

About SRS WOW

More than 300 million WOW-equipped hardware or software products have been shipped or downloaded, including mobile phones from Sharp, digital audio players from Samsung, Olympus, eDigital, I-River and I-Bead, Microsoft's Windows(R) Media Player series software products, car CD receivers from Kenwood, as well as televisions from Sony, Hitachi, Toshiba and Sharp. For a demonstration of the stunning difference WOW makes to stereo audio, visit the SRS Labs website at c .

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 creation, production and broadcast of content featuring SRS Labs' technologies. SRS Labs' wholly owned subsidiary, ValenceTech, is a Hong Kong-based semiconductor company that designs and sells 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 aforementioned website is not incorporated by reference into this press release.

About PacketVideo

PacketVideo was founded in 1998 and is now recognized as the world's premiere independent provider of mobilemedia software. PacketVideo's standards-based Network Solutions enable the distribution of high-quality video and audio over challenging wireless networks. PacketVideo's Device Solutions provide embedded multimedia capability including audio and one & two-way video for mobile phones and other converged devices. PacketVideo is a privately held company headquartered in San Diego, California. More information can be found at www.pv.com .

SRS, WOW and the SRS symbol are trademarks of SRS Labs, Inc. in the United States and selected foreign countries. PacketVideo, PV, Recorder, pvAuthor, pvPlayer, pvCamcorder, pvServer, and pv2way are trademarks or registered trademarks of PacketVideo Corporation. All other trademarks are the property of their respective owners. The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

Except for historical information contained in this release, statements in this release, including those by Mr.Franceschi in paragraph nine, 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 actual growth of cellular phones which feature multimedia functions and the company's ability to capitalize on this potential opportunity with its WOW technology, 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, +1-949-442-1070 ext. 3093, tami@srslabs.com, or Media, Jennifer Drescher, +1-949-442-1070 ext. 5010, jenniferd@srslabs.com, both of SRS Labs, Inc.; or Dann Wilkens of PacketVideo, +1-858-731-5454, wilkens@pv.com .

Source: SRS Labs, Inc.