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Next Generation WOW(TM) XT Mobile Suite for Smart Phones and Other Wireless Applications Unveiled at SRS Labs' Booth # 1033-R

WOW XT for Mobile incorporates the most advanced, patented audio enhancement technologies available including exceptional 3D audio, psychoacoustic bass and ring tone enhancement. SRS Labs' voice technologies provide noise reduction, voice clarity and intelligibility. Each of these solutions are optimized for the specific audio playback challenges that handset manufacturers face, such as tiny speaker driver issues, single speaker stereo challenges and difficulty in achieving deeper bass tones without significant usage of device memory and power resources.

Whether the device has one speaker, two closely spaced speakers or relies on headphone or earbud playback, WOW XT for Mobile can be customized for any handset maker or OEM's specific requirements and handset design. The WOW XT libraries are available on ARM®, Intel XScale(TM), and TI OMAP(TM) processors and are compatible with Symbian(TM) OS, Microsoft Windows Mobile(TM) 2003, Linux and other operating systems. The key benefit of adding SRS software technologies is that hardware design changes aren't needed to quickly achieve incredibly fuller, more dynamic audio. In addition, wireless service providers who incorporate WOW XT for Mobile into their product lineup can dramatically improve a subscriber's first impression when trying a mobilemedia application for the first time.

"As mobile phone and smart phone popularity accelerates, consumers are now comparing the video and audio qualities with what they are used to experiencing from common consumer electronic devices such as MP3 players," says Joanna Skrdlant, director of product marketing at SRS Labs, Inc. "They are starting to look for the best voice and sound quality in handsets from voice communication to ring tones to gaming and are making purchasing decisions based on every aspect of that device's user experience. In delivering a dramatically improved audio and voice experience for these devices, we help support service providers as they roll out new wireless entertainment and voice services in addition to providing manufacturers a substantial competitive advantage in this rapidly growing global market."

SRS Labs has developed a fast, streamlined system of licensing approval and delivery of technologies for any manufacturer's desired platform or application. Interested parties should contact the following people:

For technology licensing: Joanna Skrdlant, joannas@srslabs.com at 949.442.1070 ext. 5138

For a technology demonstration at CTIA: Jennifer Drescher, jenniferd@srslabs.com at 949.442.1070 ext. 5010

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 Ms. Skrdlant, 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: 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.