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Aiwa's New XD-DV10 DVD Player Incorporates SRS Labs' Flagship TruSurround Technology

DVD players are the fastest growing category of consumer electronics, with sales of DVD players eclipsing VCRs for the first time in October last year according to the Consumer Electronics Association. A key benefit of DVDs is the delivery of multichannel content. However, about 80 percent of households today still use two speaker systems and SRS Labs' TruSurround is a ``must-have'' feature for this majority to enjoy multichannel content without a home theater audio system. The increased availability of multichannel content, along with consumers' growing demand for an enhanced home theater experience provide a tremendous market opportunity for the TruSurround technology, which has also been applied in set top boxes, televisions and surround headphones.

``Aiwa is a recognized brand name that increases our exposure to their valuable consumer users and their adoption of TruSurround demonstrates the superiority of our virtual surround sound technology,'' said Thomas C.K. Yuen, chairman, CEO and president. ``We are very pleased that Aiwa has chosen TruSurround as its first implementation of SRS Labs' technology in their product line. We expect to continue working with them on future products as one of our premier consumer manufacturer partners.''

TruSurround is a patented, Dolby®-certified technology developed by SRS Labs, that creates a virtualized surround sound experience from a two-speaker playback system playing multichannel audio sources such as those found on DVDs and digital broadcasts, including Dolby Digital, Dolby Surround, Dolby Pro Logic or THX.

Shiro Kurano, General Manager, at Aiwa said, ``SRS TruSurround virtual surround system enables our users to enjoy impressive virtual surround sound with just the two front speakers. While we were impressed with the sound quality, we were equally moved by the added value that the SRS TruSurround brand name brings with it -- consumers recognize the name and desire the TruSurround feature.''

About TruSurround

TruSurround is a Dolby certified audio technology by SRS Labs that takes six-channel audio programming such as Dolby Digital and Dolby Surround and converts it into a virtualized surround sound experience over just two speakers, without the need for multiple speakers placed around the room or Dolby decoder hardware. TruSurround has been licensed by many of the world's leading consumer electronics manufacturers including: Hughes, Funai, Marantz, Mitsubishi, Philips, Sony, Thomson, Toshiba and is available through leading semiconductor company partners including AKM, Broadcom, Cirrus Logic, STMicroelectronics, Mitsubishi, Motorola, NJRC, and Toshiba.

About Aiwa Co., Ltd.

Based in Tokyo, Aiwa is one of the world's leading manufacturers and marketers of consumer and professional audio, visual, mobile and communications products. The company is also going to create a line of unique, high quality products for personal use which meet the needs of the era of AV/IT integration and broadband networks applying highly renowned miniature mechatronics technology as well as audio/visual and recording technology such as DVDs and Mini Discs.

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.

Except for historical information contained in this release, statements in this release, including the statement by Mr. Yuen in paragraph three 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 SRS Labs' continued relationship with Aiwa and its inclusion in future projects, 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 the economic impact of recent or future terrorist actions and other risks detailed in the Company's Form 10-K and other periodic reports filed with the SEC.

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

SOURCE: SRS Labs, Inc.