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Company Benefits From Coverage of Technologies Across Extensive Range of Semiconductor Platforms

Thomas C.K. Yuen, chairman, CEO and president of SRS Labs, Inc. said, ``Our successful platform strategy was a contributing factor to the 70 percent increase in licensing revenue in 2001 over the prior year and provides the basis for the company's anticipated revenue increase of 20-25 percent for 2002, as announced earlier this year.''

SRS Labs' platform strategy is to achieve strategic coverage for its technology solutions within all of its targeted vertical product markets for expansion of sales and licensing opportunities. By developing strong relationships with the leading software and semiconductor companies, SRS audio technologies can be delivered to customers worldwide across high growth and high volume product applications.

The company appointed Roselynn Pajela to the role of Platform Development Manager to spearhead the expansion of the company's relationships with key solution providers and to manage the porting of the technologies to important digital semiconductor products. Ms. Pajela states, ``By porting our audio solutions to new digital platforms, we gain access to new customers, decrease our time to market by as much as 50 percent (from 6-18 months to now 3-9 months), and can now exploit opportunities in strong growth categories like digital audio players, digital TVs, cell phones, DVD players, and digital set-top boxes.''

Pajela continued, ``An excellent example of how our strategy has been effective is the rapid adoption of TruSurround. By working closely with our platform partners early in the development cycle, we have penetrated many of the leading DVD player manufacturers around the world. Through the broad implementation availability, superior quality of the technology and strong brand recognition of the logo, TruSurround has become the established standard for virtual surround sound.''

TruSurround's sophisticated processing technique has been adopted by the world's leading consumer electronics companies, including Sony, Thomson, Hughes Network Systems, Mitsubishi, Philips, Funai, Yamaha, Pioneer, Toshiba, Marantz, Hitachi, and Aiwa. It has already shipped in over 10 million home theater products, including DVD players, TVs, satellite receivers and set-top boxes. SRS Labs has been granted patents for TruSurround in the United States and Asia, with a recent notice of allowance from the European Patent Office.

The company plans to continue increasing the number of products and add new partners and product solutions each quarter, expanding its targeted vertical product markets such as home theater, wireless, portable audio, car audio, telecommunication and others. The company is committed to continue broadening its semiconductor coverage with select partners. Yuen stated, ``Looking ahead to the future, our platform strategy will continue to be a powerful tool in addressing emerging new markets in an efficient and timely manner.''

    Partial listing of SRS Labs' current platform partners and solutions:

    DIGITAL SIGNAL PROCESSORS with SRS Audio Solutions:

        *  AKM: SRS, TruSurround, TruBass, FOCUS, Circle Surround 5.1
        *  Analog Devices: Circle Surround II, TruSurround, WOW, VIP
        *  Broadcom: TruSurround
        *  Cirrus Logic: SRS, Circle Surround II, TruSurround
        *  Mitsubishi: TruSurround
        *  Motorola: TruSurround
        *  Samsung: VIP
        *  ST Microelectronics: SRS, WOW, TruSurround, TruBass
        *  Texas Instruments (TI): WOW, VIP
        *  Toshiba: SRS, TruSurround, WOW, VIP

    ANALOG CHIPS with SRS Audio Solutions:

        *  Analog Devices: Circle Surround 5.1
        *  ASP Microelectronics: WOW
        *  Mitsubishi: SRS, Focus, SRS Headphone, SRS Mono
        *  Motorola: TruSurround
        *  NJRC: SRS, Focus, TruSurround, SRS Headphone, TruBass, WOW
        *  Toshiba: SRS

About SRS Labs, Inc.

SRS Labs, Inc. ( www.srslabs.com ) and its subsidiaries provide advanced sound solutions for high growth consumer markets, including home theater, DVD, portable audio, wireless devices, game consoles, automotive, broadcast, Internet and personal computer software. SRS Labs, the parent company, develops the core technologies and licenses these patented technologies to over 200 well-known manufacturers and semiconductor companies, including Sony, RCA, Philips, Kenwood, Mitsubishi, Hitachi, Microsoft, and Pioneer. ValenceTech, Ltd., ( www.valencetech.com ) SRS Labs' Hong Kong-based subsidiary, is a leading fabless ASIC design and manufacturing company providing analog and digital ASIC solutions to the world's leading manufacturers of consumer electronics, gaming, telecommunications and computer products. SRS Labs' subsidiary, SRSWOWcast Technologies, ( www.srstechnologies.com ) focuses on the Internet and broadcast markets by developing and licensing customized hardware and software products incorporating SRS Labs' patented technologies.

SRS, and the SRS symbol are registered trademarks of SRS Labs, Inc.

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

SOURCE: SRS Labs, Inc.