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New Software Product Enabling VST Users To Encode up to 6.1 Channels of Dynamic Surround Sound Audio Launched at AES Show

SANTA ANA, Calif., Oct. 9, 2003 – SRS Labs, Inc. (NASDAQ: SRSL), a leading provider of innovative audio, voice and semiconductor technology solutions, today announced the first professional encoding software plug-in product for its Circle Surround (CS) sound format. The new product, SRS Circle Surround® VST Pro, is a plug-in for the popular VST (Virtual Studio Technology) format developed by Steinberg. It features a Circle Surround encoder and decoder for delivering and monitoring surround mixes. The software will be priced at $499 MSRP and is expected to begin shipping in November.  SRS Labs is demonstrating this new software product, as well as its full line of professional audio hardware, at the 115th AES Conference in New York City from Oct. 10-13 in demonstration suite 2D04. 

In a separate release issued today, the company announced that the distribution of its software products will be handled exclusively by Wave Distribution, a distributor of professional audio products operating in 42 locations across 23 states. The software will also be available through SRS Labs’ web site at www.srslabs.com. 

SRS Circle Surround VST Pro enables anyone, from amateur musicians to broadcasters, audio professionals and other VST users to easily encode up to 6.1 channels of surround sound into stereo delivery formats for television, cable programming, music applications, and other media.  This software represents a substantial breakthrough over previous matrix encoding plug-ins in that it is the only encoder capable of encoding up to 6.1 channels while providing accurately steered, full-bandwidth stereo surround channels with superior center channel dialog isolation.  In addition to broadcasting and post production, this new surround encoding tool is well suited for production of 5.1 or 6.1 music content with delivery via industry standard compact discs.

“Until now, options for surround encoding on the VST platform were limited,” explained Kurt Heiden, product marketing manager for SRS Labs, Inc.  “This marks the first time that VST-powered content creators can get a professional 6.1 surround solution at a fraction of what it would cost for outboard hardware.  Full-bandwidth, 96 kHz, 6.1 channel surround encoding, combined with the most powerful matrix surround steering in the world, make this an incredible tool for audio content creators.  Best of all, Circle Surround mixes are fully compatible with millions of A/V surround receivers, as well as mono or stereo playback, so nobody misses out on the fun.” 

SRS Circle Surround VST Pro works with any surround-capable, VST-compliant application for Mac OSX® and Windows® XP supported computers, with a 500Mhz minimum processor speed for Mac OS X and 1Ghz minimum for Windows XP users.  In addition to the encoding software, the product also includes both a decoding plug-in, which is used for monitoring playback during production, ensuring audio professionals that they are listening to exactly what their intended end-users will hear.

Product specifications

SRS Circle Surround Encoder Plug-in:

• Up to 7-channel input, 2-channel output

• 44.1kHz, 48 kHz, and 96 kHz sampling rates supported

• Full bandwidth playback of 3 distinct rear channels (Ls, Cs, Rs)

• Accepts project stems in LCR, LCRS, 5.0, 5.1, 6.0 and 6.1 surround formats

• Identical in performance to the SRS CSE-07 Circle Surround hardware encoder

• Selectable high pass filter on main channels (L,C.R,Ls,Cs, Rs) for full control over low frequency content

• Compatible with compression codecs with stereo bit rates as low as 64 kbps and delivers premium audio performance at 192 kbps and above

SRS Circle Surround Decoder Plug-in:

• 2-channel input, up to 7-channel output

• 44.1 kHz, 48 kHz and 96 kHz sample rates supported

• Monitor modes for Circle Surround, LCRS, stereo and mono content

• SRS TruBass® patented bass enhancement post-processing

• SRS Dialog Clarity® enhancement post-processing

• Identical in performance to the SRS CSD-07 Circle Surround hardware decoder

• Superior performance for decoding of any Lt/Rt Surround Sound content

• Proprietary multiband steering logic for >30db front/rear channel separation

 Circle Surround encoding has made inroads to many of Hollywood’s most influential creative talent and professional broadcasters. The Circle Surround format is the optimum surround solution for television because it enables any network currently telecasting in stereo to now deliver up to 6.1 surround sound to its viewers with no change to the distribution or broadcast infrastructure.  Current broadcasters include ABC, CBS, NBC, ESPN, ESPN 2, ESPN HD, FOX, FX, TNT, PBS and over two dozen programs including the 2003 Latin Grammy Awards, 55th Annual Prime Time Emmy Awards, X Games, NFL and NBA broadcasts. Some of the new fall television shows launching with Circle Surround include

“It’s all Relative” on ABC,  “A Minute with Stan Hooper,”  “Run of the House,” and “Luis” on FOX.  For information on hardware and software products to deliver Circle Surround, contact Mike Canevaro at 949-442-1070 x3216 or mikec@srslabs.com.  For more information on SRS Labs, Inc. broadcast and professional audio line, please visit: www.srslabs.com/MainProAudio.asp

About Circle Surround and Circle Surround II

In addition to a versatile encoding format for professionals, Circle Surround is also a powerful surround sound decoder that is licensed to manufacturers of electronics equipment, including A/V receivers, televisions, computer software, sound cards and automotive systems. Circle Surround II, which includes all the benefits of Circle Surround with two additional SRS technologies, TruBass® and Dialog Clarity™, is the most feature-rich version currently available. It delivers up to 6.1 channels of audio from any mono, stereo, matrix encoded or Circle Surround encoded material. With Circle Surround II, home theater listeners can now enjoy their 5.1 or 6.1 surround sound systems with material that is not encoded in surround sound including classic old mono movies, standard music CDs, current stereo television shows, cable broadcasts and movies on VHS. It also decodes any matrix encoded material, providing better performance than older systems such as Dolby Pro Logic® and Dolby Pro Logic II. Optimal results can be achieved with playback of Circle Surround encoded source material. TruBass is a patented bass enhancement technology that processes information present in the original source material to create the perception of bass that is lower than the normal capabilities of a given speaker driver, resulting in bass tones that are amazingly full and alive. Dialog Clarity is a patented SRS algorithm that significantly improves dialog intelligibility from all source material.

 Circle Surround and Circle Surround II are featured by leading OEMs and consumer electronics companies worldwide, including Kenwood, Marantz, Theta Digital, Loewe, Onida, Accuphase, Jaton, M-Audio, Orion Studios and Smart Devices. A wide range of analog and digital implementation options for Circle Surround are available from the SRS Labs’ family of platform partners including AKM, Analog Devices, ASP Microelectronics, Cirrus Logic, Motorola, NJRC and STMicroelectronics, and Texas Instruments. For more information on licensing Circle Surround, contact sales@srslabs.com or visit http://www.srslabs.com/LicensingTechMultichannel.asp.

Except for historical information contained in this release, statements in this release 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 timely launch of the new SRS Circle Surround VST software in November, 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.

Source: SRS Labs