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Las Vegas Show Serves as Launching Ground for the Company's Circle Surround II And TruSurround XT Audio Technologies; Also Unveiling Proprietary Flat Panel Speakers to Industry

At CES, SRS Labs is showcasing its recently announced CSII technology in a home theater environment, as well as for streaming media applications and there will be an interactive demonstration for multi-channel gaming purposes. The company's new TruSurround XT technology is being presented in a home theater environment and also through headphones for DVD playback on laptops. Additionally, there are various SRS technologies available for demonstration at the booth including portable audio technologies for MP3 players and PDAs. The company is also demonstrating its WOW(TM) for small speakers, which enables enhanced audio performance from speakers such as those found in PCs, TVs and new portable audio devices.

SRS will be demonstrating new audio technologies to OEM customers and semiconductor manufacturers during the show as well. These technologies have been designed to solve audio performance issues for consumer electronics manufacturers and provide dialog clarity, improved low-to-mid range performance for small speakers, solve stereo to mono conversion issues and significantly improve audio performance of small speakers, ear buds and headphones. Targeted product markets for the new SRS technologies include LCD flat panel monitors, laptops, DVD players, PDAs, MP3 players, televisions and video-on-demand systems.

Home Theater Speakers

SRS Labs is demonstrating its proprietary flat panel speakers that are based on its patented design and technology to industry retail buyers and OEM candidates. Developed by the original inventor of the company's namesake SRS technology, Arnold Klayman, these speakers not only boast dynamic, immersive sound quality, but also feature a sleek 2`` deep flat panel design. The Klayman Signature Series and Prestige Series, address the burgeoning home theater market with modular solutions that allow for upgrading single speakers or complete 5.1 surround systems. SRS Labs is a CES Innovation 2002 Design and Engineering Showcase honoree for its SRS ''Klayman Signature Series`` 2-way floor speakers and the speakers will be displayed in Innovations booth #30733 in the Hilton Pavilion at the Las Vegas Hilton. For a live demonstration, visit the N247 Meeting Room in the Las Vegas Convention Center.

Circle Surround II

At the show, the company is presenting its new high-performance 6.1 channel matrix surround sound decoding system, CS II ( http://www.srslabs.com/techdemo.asp#cs ). Based on the company's original Circle Surround technology, CS II incorporates powerful new features including proprietary dialog clarity enhancement technology and patented cinema-like bass enrichment. Circle Surround II is an extremely powerful and versatile surround decoder able to deliver up to 6.1 channel of full-bandwidth audio with incredible rear surround separation from mono, stereo, Dolby Surround and Circle Surround encoded material. This backward compatibility allows consumers to take advantage of their home entertainment systems when playing CDs, watching a video or television. CS II addresses the home theater and surround sound market which has been fueled by phenomenal growth in DVD sales, digital cable and satellite broadcasting, the introduction of next generation video game consoles and the recent surge in product categories, such as ``home- theater-in-a-box'' systems.

CS II semiconductor solutions for A/V receiver manufacturers are available now through ADI on the 32-bit SHARC® DSP-based Melody(TM) decoder models ADSST-2106x and ADSST-21161x platforms and through Cirrus Logic on the Genesis CS 49300 DSP platform. SRS Labs' current CS 5.1 decoding technology is currently shipping in products from leading A/V receiver manufacturers such as Kenwood and Marantz. The company plans to license CS II technology to the home theater, pro-audio, Internet, computer, cinema and gaming product manufacturing markets worldwide. Other Circle Surround II semiconductor solutions will be available in early 2002.

TruSurround XT

SRS is also demonstrating its TruSurround XT ( http://www.srslabs.com/techdemo.asp#TSXT ), the latest version of its popular virtual surround sound technology TruSurround that features exciting new audio features for the ultimate enjoyment of Dolby Digital, Dolby Surround or DTS encoded programming through two-speaker audio systems and headphones. TruSurround XT builds upon the original TruSurround by adding three unique SRS audio enhancement techniques; dialog clarity, bass enrichment and the addition of the company's award-winning WOW stereo audio enhancement that produces an immersive sound experience from standard stereo material. SRS Labs is targeting the DVD, set top box and software DVD markets with this exciting new technology, which provides an immersive virtual surround sound listening experience for DVD movies played on computers over headphones or a two-speaker audio system.

For more information about SRS Labs' participation at CES or to arrange an appointment for a demonstration at the CES show, please call Jennifer Drescher at 949-442-1070, ext. 5110 or for more information about SRS Labs' technologies or products, please visit www.srslabs.com .

About CEA

The Consumer Electronics Association (CEA) represents more than 650 U.S. companies involved in the design, development, manufacturing and distribution of audio, video, mobile electronics, wireless and landline communications, information technology, multimedia and accessory products, as well as related services that are sold through consumer channels. Combined, CEA's members account for more than $70 billion in annual sales. CEA's resources are available online at www.CE.org , the definitive source for information about the consumer electronics industry. CEA also sponsors and manages the International CES -- Your Source for Workstyle and Lifestyle Technology. All profits from CES are reinvested into industry services, including technical training and education, industry promotion, engineering standards development, market research and legislative advocacy.

About SRS Labs

SRS Labs ( http://www.srslabs.com ) is a leading worldwide provider of advanced audio and voice technology solutions to today's leading consumer electronics, telecommunications equipment, game developers, wireless and cellular phone manufacturers and also markets products for semi-pro and professional audio signal processing. The company's Hong Kong-based ASIC design subsidiary, ValenceTech, Ltd. ( http://www.valencetech.com ) is a leader in the design, manufacturing and distribution of integrated circuit and sub-assembly solutions for leading consumer products. The Company's subsidiary, SRSWOWCast Technologies ( http://www.srstechnologies.com ), licenses audio and voice technologies for broadcasting and streaming media.

For further information, please contact: investors, Tami Yanito, ext. 3093, tami@srslabs.com, or media, Jennifer Drescher, ext. 5110, jenniferd@srslabs.com, both of SRS Labs, Inc., +1-949-442-1070.

SOURCE: SRS Labs, Inc.