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World's Largest Audio Chip Supplier Offers Unparalleled Virtual Surround Sound to All Consumer Product Manufacturers

Cirrus Logic's unique firmware support -- now available with all of its Crystal® programmable audio DSPs -- eliminates the need for the costly and complex dedicated analog circuitry typically found in today's system designs. Integrators can download production-ready algorithms, like SRS Labs' TruSurround code, from Cirrus Logic to take advantage of firmware enhancements quickly and easily. This process enables TruSurround implementation simply by loading the appropriate algorithms in the firmware. No complex circuitry or design changes are required. Rather, TruSurround can be added to product design quickly and easily without additional system or hardware costs.

``Cirrus Logic is perfectly positioned with its Crystal entertainment class DSPs,'' stated Terry Richie, vice president, DSP strategic marketing for Cirrus. ``Because in the same entertainment DSP chip, we're able to provide bonus features like SRS Labs' TruSurround at no extra hardware costs, in the end making it easier and less expensive for our customers to clearly distinguish their products with key new algorithms. SRS Labs' TruSurround is already ported to our firmwares that support DVD Players, AV Receivers and Set-Top Boxes. Overall, programmable DSPs enable Cirrus Logic to increase market share as the consumer AV market blazes, post DVD player.''

``TruSurround is a phenomenal technology, enabling consumers to enjoy a superior surround sound effect without the expense of a 6 speaker system,'' stated Tom Yuen, chairman of SRS Labs. ``Now the world's best virtual surround technology, TruSurround, has become easily available through the innovative design of Cirrus Logic's latest chipset. We've enjoyed a strong relationship with Cirrus and are pleased with their success in the wide scale distribution of our surround sound technologies.''

About TruSurround

With its heritage traced to the patented SRS Labs' technology, TruSurround is a Dolby-certified virtual audio technology that creates an immersive surround sound experience from just two standard speakers. It was originally designed to take advantage of the 5.1 channel audio for DVD, without requiring the use of six speakers. TruSurround processes the six discrete channels of digital audio into just two channels, retaining all of the original audio information and giving the listener the perception that additional ``phantom'' speakers surround them.

About SRS Labs, Inc.

SRS Labs is a leading provider of audio and voice enhancement technology solutions. SRS Labs' business consists of licensing audio and voice enhancement technologies to manufacturers of consumer electronics, computer, gaming and telecommunications equipment; and the design, manufacture and distribution of components, integrated circuits, sub-assemblies and finished products for the consumer electronics and home entertainment markets. For more information on SRS Labs' technologies, the company's worldwide licensing program or its design and manufacturing capabilities, visit the SRS Labs website at http://www.srslabs.com.

TruSurround, SRS and the SRS symbol are registered trademarks of SRS Labs, Inc. in the United States and selected foreign countries. Circle Surround is a trademark of SRS Labs, Inc. in the United States and selected foreign countries. All other brand names mentioned are trademarks or registered trademarks of their respective holders.

Except for historical information contained herein, Company statements and each of the statements of Mr. Yuen in paragraph four of this release include forward-looking statements and projections (including 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 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 acceptance of the Company's Internet strategy, the acceptance of new SRS Labs' products and technologies, the impact of competitive products and pricing, the timely development and release of media content by the Company, general business and economic conditions, especially in Asia, and other risks detailed in the Company's Form 10-K and Form 10-Q statements filed with the SEC.

SOURCE: SRS Labs, Inc.