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Latest MSP Chip Family Member Migrates SRS Solution into LCD and Digital TV designs 

 The TruSurround XT feature is available now in these chips, and is currently marketed by the global sales force of both SRS Labs and Micronas.  Similar to the companies' previous licensing agreement for the SRS WOW® technology, SRS Labs will receive a per-unit licensing fee for each television shipped with TruSurround XT.

 TruSurround XT is a powerful and patented audio technology that creates an immersive and spacious surround sound experience over a single pair of stereo speakers.  With the inclusion of SRS TruBass® and SRS Dialog Clarity(tm), which provide deep, rich bass tones and clarify speech during passages that contain dynamic surround sound effects, TruSurround XT is the industry's most feature-rich virtual surround sound technology available.  Any multichannel 5.1 audio input can be processed by TruSurround XT to be played back as virtual surround sound by two loudspeakers only. TruSurround XT is also compatible with standard stereo, making it one of the most versatile audio enhancement technologies currently available.

"The addition of TruSurround XT to the audio feature set in our MSP family of TV Audio processors is another example of our commitment to delivering the most demanded audio technologies to the TV market," said Stefan Hepp, director marketing consumer audio for Micronas.  "We are very pleased to continue and expand our relationship with SRS Labs.  Our mutual customers now have immediate access to a complete TV Audio solution with TruSurround XT without altering their current product designs."

Micronas is a leader in TV Audio ICs with a market share of 60 percent in stereo TV applications.  The MSP 44/46xyK product family manages the complete analog and digital audio signal processing in a TV.  It can be used for the latest advanced television products, including flat panel, LCD and PDP as well as digital TV.  TruSurround XT provides the virtualizer technology to allow digital 5.1 audio formats like DTS or Dolby

Digital to be played back via two TV loudspeakers, following the trend that especially modern flat panel TVs support these state-of-the-art audio formats.  The increasing amount of surround sound-encoded television programming as well as the explosion of DVD player sales, which have the capability to deliver 5.1 channels of audio, has fueled consumer demand for a home theater surround sound entertainment experience.

Although Micronas TV Audio products also support multichannel 5.1 audio using left, right, center, surround and subwoofer loudspeakers, the majority of TV designs is limited to two loudspeakers only.  For this market segment, Micronas was the first company to implement virtualizer technologies in TV Audio chips.  Ever since, the company's solutions for virtual surround sound TV have been a driving factor for the growth of this market segment.

"We are excited to continue developing our powerful partnership with Micronas by aggressively promoting this unique solution to the TV market," said Lenka Koloma, European sales and marketing director for SRS Labs.  "The availability of our next generation TruSurround XT technology on this new chip enables us to leverage Micronas' deep penetration in the TV market and offer the latest advancements in surround sound to TV users worldwide."

About TruSurround/TruSurround XT

The TruSurround family of technologies delivers an immersive home-theater surround sound experience from multi-channel audio material, including MPEG 1 and 2, over standard stereo speakers or headphones. The original TruSurround technology has become the established standard for the virtualization of 5.1 surround sound over two-speaker systems and has been featured in over 20 million products globally from such household names as Hughes Network Systems, Matsushita, Mitsubishi Electric Corporation, Philips, Pioneer, Sony, Thomson Consumer Electronics, and Toshiba Corporation. The next generation version, TruSurround XT, includes SRS TruBass bass enhancement and SRS Dialog Clarity, two powerful and patented technologies that make it an invaluable solution for home theater manufacturers.  TruSurround and TruSurround XT are applicable to DVD players, televisions, set top boxes, video game consoles and A/V surround sound receivers. For more information on licensing SRS technology, contact sales@srslabs.com.  To hear an online demonstration of TruSurround, visit http://www.srslabs.com/LicensingTechMultichannel.asp#TS.

About the Multistandard Sound Processor Families MSP 44/46xyK

The Multistandard Sound Processor families MSP 44/46xyK represent the fifth generation of Micronas' single-chip TV sound demodulator, decoder, and processors.  Demodulation and stereo decoding of all analog TV standards worldwide, as well as the digital NICAM sound standard and FM stereo radio, is performed on the chips.  Baseband audio is processed in the DSP section after on-chip A/D conversion or input via I2S.  Built-in high-quality multibit sigma-delta D/A converters feed the TV's power amplifiers.  Alternatively, digital PWM outputs allow connection of state-of-the art "class D" digital amplifiers.  Micronas' "Hi-Resolution PWM" technology enables natural sound with digital power amplifier ICs provided by several manufacturers.

About Micronas

Micronas (SWX Swiss Exchange: MASN, Prime Standard Segment, TecDAX, Frankfurt: MNSN), a semiconductor company group with worldwide operations, is a leading supplier of cutting-edge IC and sensor system solutions for consumer electronics and automotive electronics.  The holding is headquartered in Zurich (Switzerland).  Currently, the Micronas group employs about 1700 people.  In 2002, it generated over CHF 707 Million in sales.  For more information on Micronas and its products, please visit www.micronas.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 Mr. Hepp in paragraph four and Ms. Koloma in paragraph seven, 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 relevant 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 general market conditions concerning semiconductor business, the acceptance of SRS Labs' technologies by Micronas' customer base, Micronas' ability to maintain and grow its TV DSP market share, the impact of competitive products and pricing, the timely development and release of technologies by the Company, general business and economic conditions, especially in Europe, and other factors detailed in the SRS Labs' Form 10-K and other periodic reports filed with the SEC. SRS Labs and Micronas specifically disclaim any obligation to update or revise any forward-looking statement whether as a result of new information, future developments or otherwise.

Source: SRS Labs