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SRS Labs Joins the ARM Connected Community to Market WOW(TM), One of the World's Leading Audio Enhancement Technologies, for the Most Widely Used 16/32-bit Embedded RISC Solution in the World

SRS Labs targeted the ARM processor platform to deliver a solution for its audio and voice technologies to mobile device manufacturers and joined the ARM Connected Community in order to work closely with ARM to market the SRS solution to leading embedded device manufacturers. SRS Labs has already provided its licensees with WOW libraries optimized for the ARM processor including newly developed audio features customized for embedded devices. ARM technology-based SRS WOW libraries optimized for embedded device operating systems such as Symbian OS(TM) and Microsoft's Mobile 2003 OS are also available for license from SRS.

"We welcome SRS to the ARM Connected Community offering developers with branded audio and voice post processing libraries for ARM cores tailored for mobile phones, PDAs and other embedded convergence devices," said Mary Inglis, director of OS & Alliance Marketing, ARM. "As a leader in audio solutions for consumer electronics, SRS is positioned to become a valuable asset to developers for new solutions and ideas for advanced audio functionality on embedded devices as the convergence of handsets and multimedia functionality continues to grow."

WOW is an invaluable technology solution for audio-enabled mobile phones or handset devices because it provides a dramatically wide, 3D 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. 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.

"The ARM RISC processors provide us with an excellent platform to deliver our WOW technology to mobile phone manufacturers worldwide," said Joanna Skrdlant, director of product marketing at SRS Labs. "As more mobile phones become available with features such as music and video playback, we see a growing opportunity for our WOW audio solution, which is flexible enough to accommodate any type of audio playback, including one speaker, two speaker or headphones. By working more closely with ARM and their Connected Community, we will explore advanced audio solutions for mobile handsets and embedded devices of the future." SRS Labs continues to develop and release new versions of its audio and voice technologies on ARM core-based processors, including advanced WOW features for mobile phones and Smartphones.

Over 300 million hardware or software products have been shipped or downloaded that include the powerful WOW audio feature. It provides stunning improvement to the fidelity of sound from any size speaker or headphone, ranging from ultra-miniature size to ordinary sizes. Hardware and software products that feature WOW include mobile phones from Sharp, digital audio players from Samsung, Olympus, eDigital, I-River and I-Bead, Microsoft's Windows® 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 http://www.srslabs.com/Demonstrations.asp . For more information about SRS technologies available for ARM RISC processors and how to license, contact Joanna Skrdlant at semiconductorsupport@srslabs.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 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 Mrs. Skrdlant 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 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.

ARM is a registered trademark of ARM Limited. ARM7 and ARM9 are trademarks of ARM Limited. All other brands or product names are the property of their respective holders. "ARM" is used to represent ARM Holdings plc (LSE: ARM and Nasdaq: ARMHY); its operating company ARM Limited; and the regional subsidiaries ARM INC.; ARM KK; ARM Korea Ltd.; ARM Taiwan; ARM France SAS; ARM Consulting (Shanghai) Co. Ltd.; and ARM Belgium N.V.

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.