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Top Indian Manufacturer Expands SRS Presence in Rapidly Growing Home Theater Market Through Launch of 29KY Theater System

Mr. Chandramouli, vice president of marketing, sales and service at Onida said, ``We are proud to be the first to introduce SRS Labs' unique Circle Surround technology to the Indian home theater market. Onida is known for superior sound in the television industry, and I know our customers will benefit greatly from the versatility Circle Surround offers in delivering 5.1 playback from any audio source.''

Standard Circle Surround decoding is an extremely powerful, patented technology that delivers up to 5.1 channels of full-bandwidth audio with incredible rear surround separation from stereo, Dolby Surround® and Circle Surround encoded material. Onida's customized implementation also includes the patented SRS technique to process a mono source. This backward compatibility allows consumers to take advantage of their 5.1 home entertainment systems when playing CDs, watching a video or television that is not multichannel-encoded.

``As a significant manufacturer in the Indian consumer electronics marketplace, we are pleased to be associated with Onida and hope to continue working with them to bring new levels of audio quality to the Indian marketplace,'' said Sanjay Gajjar, regional director of India operations. ``The growth of television sets in this market has been staggering, and is expected to increase 246 percent by 2008. With four of the top five TV manufacturers in India featuring SRS Labs' technologies, we are well positioned to capitalize on this trend.''

About Onida

Onida is the brand of MIRC Electronics Ltd, one of India's premium television manufacturers headquartered in Mumbai, India. MIRC is principally engaged in the designing, branding, assembly and marketing of color televisions. A small proportion of the company's revenue also comes from the manufacture and sale of black and white televisions, as well as the marketing of professional grade studio equipment and washing machines. The Onida brand, apart from being a premium brand in the country today, is also being exported to the Gulf market, and countries such as Africa, Bangladesh, Sri Lanka, and Nepal.

About SRS Labs

SRS Labs 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., 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, focuses on the Internet and broadcast markets by developing and licensing customized hardware and software products incorporating SRS Labs' patented technologies.

Except for historical information contained in this release, statements in this release, including the statement by Mr. Gajjar in paragraph four 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 penetration into the Indian market and its work on 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, 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.