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Leading DVD Software Company to Integrate SRS Technology in Software Products

TruSurround XT from SRS Labs is the most advanced technology for delivering a 5.1 surround sound experience over standard, two-speaker playback systems or headphones. It is based upon its namesake, the patented TruSurround® technology, which is the established standard for virtual surround sound. TruSurround XT includes unique SRS technologies including SRS Dialog Clarity(TM), WOW(TM) and TruBass®. InterVideo intends to release software with integrated SRS technology later this year.

``The powerful combination of our digital audio enhancement technologies and InterVideo's DVD video software brings a stunning home theater experience to the computer desktop,'' said Thomas C.K. Yuen, chairman, CEO and president of SRS Labs, Inc. ``We look forward to continuing to work with InterVideo as they introduce SRS technology-featured products to consumers around the world.''

``InterVideo's WinDVD has established itself as a leading DVD player partially because of its outstanding picture quality,'' said Steve Ro, CEO and co-founder of InterVideo. ``By integrating SRS audio technology, InterVideo will be able to offer consumers a broad range of rich audio possibilities that will add to the enjoyment of watching movies.''

About SRS Labs

SRS Labs, Inc. (http://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. (http://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, (http://www.srstechnologies.com) focuses on the Internet and broadcast markets by developing and licensing customized hardware and software products incorporating SRS Labs' patented technologies.

About InterVideo, Inc.

InterVideo is a leading provider of DVD software and offers a broad suite of advanced digital video and audio multimedia software products that allow users to record, edit, author, distribute and play digital multimedia content on PCs and consumer electronics devices. InterVideo's software is bundled with products sold by eight of the top ten PC manufacturers, ranked in terms of sales by IDC, including Compaq Computer Corporation, Dell Products L.P., Fujitsu Limited, Fujitsu Siemens Computers GmbH, Hewlett Packard Company, Medion AG, Sony Corporation and Toshiba Corporation. The company is headquartered in Fremont, CA and with regional offices in Europe, Taiwan and Japan. For more information contact InterVideo at 510/651-0888 or visit the Web site at www.intervideo.com.

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 the management of SRS Labs for future operations) that are based on management's belief, as well as assumptions made by, and information currently available to, management. While SRS Labs believes that its expectations are based upon reasonable assumptions, there can be no assurances that SRS Labs' goals and strategy will be realized. Numerous factors (including risks and uncertainties) may affect SRS Labs' actual results and may cause results to differ materially from those expressed in forward-looking statements made by or on behalf of SRS Labs. Some of these factors include SRS Labs' continued work with InterVideo 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 SRS Labs, general business and economic conditions, especially in Asia, and the economic impact of recent or future terrorist actions and other risks detailed in SRS Labs' Form 10-K and other periodic reports filed with the SEC.

SOURCE: InterVideo, Inc.