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SRS Labs' Technologies Continue to Be Selected by Worldwide Leaders in LCD and Plasma Displays

SRS Labs' patented technologies were developed after years of research on the psychoacoustics of sound and the dynamics of the human hearing system. Both SRS and WOW restore audio realism that is masked by traditional recording and playback techniques and create a full and rich listening experience from smaller speakers or speakers close together, such as those typically found in televisions, home and portable audio products and automotive entertainment systems. SRS and WOW deliver audio that explodes beyond the internal speakers in both the vertical and horizontal planes and fills the room with a panoramic 3D soundstage. WOW, comprised of several patented SRS technologies including the core SRS 3D Sound, also compensates for the bass limitations inherent in the smaller speakers that are usually found in televisions with the inclusion of TruBass, a patented psychoacoustic technology that creates the perception of deep rich bass in systems otherwise incapable of producing lower frequency information.

"We are very excited that BenQ has chosen SRS and WOW as their audio enhancement technologies, as they are the ideal solutions for the unique challenges that TV and monitor speakers present," said Lupita Ho, marketing manager for SRS Labs. "As our technologies continue to gain ground in expanding markets such as China and Japan, manufacturers are becoming increasingly aware of the substantial market value our audio innovations add to their products."

"With SRS Labs' audio enhancement technology, the sound from the built-in speakers of BenQ's LCD monitors and LCD TVs is expanding out to create a 3D sound experience," said Thomas Han, vice president of Display at BenQ America. "SRS technologies allow BenQ products to be an ideal multimedia solution. Naturally, consumers will get amazing picture quality with our monitors and LCD TVs, but by incorporating SRS Labs' technologies, you will get the whole audio and visual experience from various audio applications, such as streaming audio webcasts, standard television broadcasts, video games and DVD video."

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. 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. In addition to stereo enhancement technologies, SRS technologies for the TV market also include 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. Market leaders shipping products with SRS technologies include Hitachi, Loewe, Metz, Mitsubishi, Pioneer, Sharp, Skyworth, Sony, RCA/Thomson, Toshiba, Samsung, Zenith/LG, Changhong, TCL and Konka.

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 Renasas (formerly Mitsubishi Electric).

For information on licensing SRS technologies, contact sales@srslabs.com. Additional information is also available from the company's website at www.srslabs.com .

About BenQ

BenQ is the second largest LCD monitor manufacturer worldwide and an industry leader in networking lifestyle devices with an expertise that encompasses display, storage, imaging, wireless and broadband areas. BenQ has manufacturing plants in Malaysia, Mexico, China and Taiwan. The company has 13,000 employees worldwide, supporting a strong global sales marketing and service network spanning Asia-Pacific, Europe and the Americas. BenQ has research and development facilities in Taiwan, China and the U.S., and has more than 2,000 research and development employees. BenQ has amassed 1,026 global patents. For more information, visit www.BenQ.com .

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.

Except for historical information contained in this release, statements in this release, including those by Ms. Ho, 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 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.