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Company Will Demonstrate Range of New Products, Including Circle Surround(R) Multichannel Audio Processors for Professional Audio and Broadcast Applications

The company will also provide demonstrations of its professional broadcast boxes, the Broadcast Sports Processor(TM) and the Broadcast Phase Protector(TM), which enhance the audio quality of all broadcasts, especially sports and live events. SRS will conduct a series of demos and tutorials on these professional audio products in suite #301B, located near the South Lobby Tower. The company will showcase its professional products in booth #2205 in the South Hall of the Los Angeles Convention Center.

SRS Labs is creating significant traction for its CS II multichannel audio format in the broadcast arena through its relationships with leading content providers as well as home theater receiver manufacturers such as Kenwood, Marantz and Accuphase. CS II is quickly becoming adopted as a superior format for encoding multichannel audio because it offers the broadcaster or content creator the ability to encode 6.1 channels of audio for storage on two-channel media, or for transmission via existing two-channel infrastructure. Circle Surround encoding is fully compatible with stereo or mono playback as well as playback using other matrix decoders, subject to the limitations of the individual decoders. When reproduced with a CS or CS II decoder, a full 5.1 or 6.1 channel experience is delivered to the end user.

On the decoding side Kenwood USA Corporation recently released the first- ever HTIB system featuring CS II. The new Kenwood DVT-605 is an "all-in-one" DVD home theater system that features an integrated DVD player-receiver equipped with progressive scan video output and is the first integrated product to offer CS II. With CS II, the system can deliver up to 6.1-channel surround sound playback from a variety of audio sources - mono, stereo or matrix-encoded. CS II also includes patented SRS Labs techniques to improve bass performance and dialog clarity. A number of other home theater equipment manufacturers have introduced A/V equipment that incorporates the CS II decoder including Marantz and Accuphase.

SRS products and technologies to be demonstrated at the AES show include:

Circle Surround Pro Encoder (CSE -07)

The CSE enables audio professionals to encode up to 6.1 channels of discrete program material (Left, Center, Right, Left Surround, Center Surround, Right Surround, LFE) for transmission via any stereo medium, such as two-channel broadcast (including DTV), Internet streams, CD, VHS, PC and console games. It delivers a remarkable "home theater" audio experience at bandwidths as low as 44 kpbs. CS-encoded material is backwards compatible with all standard consumer playback formats

Circle Surround Reference Decoder (CSD - 07)

The CSD is a high performance 6.1 multichannel decoder for use in professional studio production, mastering and broadcast environments. Primarily designed to monitor the Circle Surround encoded content, the CSD also delivers superior decoding of Dolby® Surround encoded material, and creates a compelling, multichannel experience from down mixed DTS or Dolby Digital sources as well. The CSD offers Circle Surround II decoding and features two proprietary SRS technologies, Dialog Clarity(TM) and TruBass® as post processing functions.

Broadcast Sports Processor (BSP-02)

The BSP contains two patented SRS technologies, a stereo synthesizer that simulates realistic stereo from mono source material, and a dialog clarity circuit that elevates an announcer's voice above ambient sounds. It enables sound engineers to enhance mixes by increasing ambient sound effects, such as crowd noise, while preserving voice intelligibility. This technology is suited for all types of events where ambient noise levels might mask the announcer's voice, such as parade and convention coverage or events where announcers are forced to speak softly so as to not interfere with the event.

Broadcast Phase Processor (BPP-02)

The BPP is a professional unit that immunizes a broadcast from dialog diffusion or drop out if there is a phase reversal at any point in the signal chain after installation. It allows for accurate reproduction of a stereo mix without any loss of center channel voice information and delivers a natural stereo or mono presentation between the left and right speakers. This new technology virtually ensures reproduction of the announcer's voice throughout the entire broadcast chain.

Circle Surround Repurposing Tool

The Circle Surround Repurposing Tool is a professional audio software product that extracts placement and steering cues present in all recordings (mono, stereo, Lt/Rt) in order to achieve a natural surround sound experience. The center channel information remains rock solid while the ambient information present in the recording wraps around the listener via the stereo rear channels. The resulting 6.1 (5.1 plus Center Surround) outputs are available for immediate multichannel remixing, remastering and/or delivery. It is no longer necessary to have the original stems or tracks in order to remix for surround sound. In addition, the software enables control of surround delay, low frequency cut-off and more, providing flexibility to achieve the desired mix.

For more information about SRS Labs' participation at AES or to arrange an appointment for a demonstration at the AES show, please call Jennifer Drescher at 949-442-1070 x5110 or email at jenniferd@srslabs.com, or simply drop by our booth #2205 for a schedule of the demonstrations taking place in suite #301B.

About SRS Labs, Inc.

SRS Labs, Inc. ( www.srslabs.com ) and its subsidiaries provide advanced technology 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 audio and voice technologies and licenses these patented technologies to over 200 well-known manufacturers and semiconductor companies, including Sony, RCA, Panasonic, Philips, Kenwood, Mitsubishi, Hitachi, Microsoft, and Pioneer. ValenceTech, Ltd., ( www.valencetech.com ) SRS Labs' Hong Kong-based subsidiary, is a leading fabless application specific integrated circuit (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. The information on the above-referenced websites is not incorporated by reference into this press release.

Except for historical information contained in this release, statements in this release 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 the general market conditions concerning semiconductor business, 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 other factors detailed in the Company's Form 10-K and other periodic reports filed with the SEC. SRS Labs specifically disclaims any obligation to update or revise any forward-looking statement whether as a result of new information, future developments or otherwise. (C) Copyright 2002, SRS Labs, All Rights Reserved. SRS, SRSWOWcast, Circle Surround, CS II, Broadcast Sports Processor, Broadcast Phase Protector, TruBass, Dialog Clarity and the SRS symbol are trademarks of SRS Labs, Inc. All other brand names mentioned are trademarks or registered trademarks of their respective holders. Other product or service names mentioned herein are the trademarks of their respective owners.

For further information please contact investor, 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