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Model SAT-A65 Provides DIRECTV Subscribers With The Reference-Standard for Virtual Surround Sound

The patented TruSurround technology, which is an established standard for virtual surround sound, delivers a 5.1 home theater experience through any two-speaker system including built-in television speakers. All users of Sony's SAT-A65 with at least stereo playback can enjoy a compelling surround sound experience from DIRECTV's multi-channel programming. The SAT-A65 DIRECTV receiver is the first set-top box product from Sony to use TruSurround.

``Sony has long been a supporter of SRS for several of its television products,'' said Jennifer Drescher, vice president of marketing, SRS Labs, Inc. ``We are thrilled that they have expanded their use of our technologies and embraced TruSurround for this rapidly growing product segment. Set-top boxes and digital satellite receivers are a natural product category for virtual surround. This announcement marks the second of the three largest DIRECTV satellite receiver manufacturers to recognize TruSurround's benefit. We will continue to support Sony and work with other digital entertainment manufacturers to bring the most exciting experience in audio technology to television viewers around the world.''

As market dynamics shift and 5.1 multi-channel audio proliferates from sources like DVD and digital satellite broadcasts, the majority of consumers are unable to enjoy the surround sound encoded audio. More than 75 percent of U.S. households still do not own home theater systems. TruSurround from SRS Labs solves this problem and bridges the gap between multi-channel audio and two-speaker playback systems, delivering a compelling 5.1 surround experience through two speakers.

``Our decision to license SRS Labs' TruSurround as the standard audio feature for our new DIRECTV digital satellite receiver was clear,'' said Greg DeSmith, marketing manager for Sony Electronics' Digital Media products. ``The outstanding performance of TruSurround, its brand recognition in the industry, and its easy-to-implement audio solution all contributed to our decision.''

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 Sony SAT-A65 DIRECTV digital satellite receiver began shipping this quarter and is already available in the United States from Sony and national electronics retailer, Circuit City. SRS Labs expects to begin receiving revenue from this contract beginning in the second quarter of this fiscal year.

About SRS Labs

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, Thomson, 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, TruSurround and the SRS symbol are registered trademarks of SRS Labs, Inc. in the United States and selected foreign countries.

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 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 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.

For further information, please contact 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.