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World Leading Software Developer Becomes First Licensee of SRS Labs' Advanced Virtual Surround Sound Technology for High Growth DVD Software Player Market

"We selected SRS Labs' TruSurround XT not only for the quality audio experience that it delivers, but also for the brand value and the fact that it is the leading surround virtualizer in the DVD hardware market, especially in Japan," according to Alice H. Chang, CEO of Cyberlink. "TruSurround XT is a perfect example of the performance enhancements and state-of-the-art features that establish PowerDVD as the reference standard in DVD entertainment on the PC. With the new PowerDVD XP 4.0, consumers can experience TruSurround XT's stereo output enhancements with home theater quality surround sound right at their desktops."

Affordable DVD-ROM drives have transformed the desktop into an entertainment platform. Users can now enjoy 5.1 multi-channel soundtracks for movies and music at their computer. Typical computer audio systems, however, have only two speakers. With TruSurround XT, Cyberlink's new PowerDVD XP 4.0 DVD debuts the most advanced virtual surround sound technology to the rapidly growing, software DVD player market. PC users no longer need to invest in a multi-channel sound card or additional speakers to thoroughly enjoy 5.1 multi- channel soundtracks for movies and music through any pair of headphones, stereo speakers, or even small PC speakers.

"We are very pleased that Cyberlink chose TruSurround XT as their standard virtual audio feature, and we welcome them as the first licensee of this new, advanced technology," stated Tom Yuen, Chairman and CEO of SRS Labs. "This partnership with Cyberlink signals our entry into the software DVD player market -- a new and rapidly growing segment. It also indicates how quickly SRS technologies can be brought to market for software products as TruSurround XT was just announced last November."

TruSurround XT Features:

-- TruSurround: TruSurround is a patented SRS technology that solves the problem of playing 5.1 multi-channel content over two speakers. TruSurround delivers a compelling, virtual surround sound experience through any two-speaker playback system, including internal television speakers and headphones. TruSurround is used in over 10 million products worldwide. It is fully compatible with all multi- channel formats up to 6.1 channels.

-- Dialog Clarity Enhancement: Playback of dialog often suffers due to competing signals from other speakers. In addition, feature film soundtracks are mixed specifically for cinema playback and are loaded with the latest advancements in special audio effects. When translated over home theatre or computers systems, dialog may become unintelligible. This patented SRS algorithm enhances signal clarity to address these problems, thus improving dialog intelligibility from all such source material.

-- TruBass: TruBass is a patented SRS technology that enhances bass performance utilizing proprietary psychoacoustic techniques. These techniques restore the perception of fundamental low frequency tones by dynamically augmenting harmonics, which are more easily reproduced by contemporary loudspeakers. Using TruBass, TruSurround XT takes the bass information contained within the original audio track and helps the speakers or headphones re-create it -- even if it is below the speaker's low frequency limitations.

-- WOW: WOW is an award winning stereo enhancement technology that significantly improves the performance of stereo (non-surround sound encoded material) signals through any two-speaker system, including headphones. It extends the sound image in both the horizontal and vertical planes well beyond the speakers themselves. In addition, WOW incorporates TruBass and Dialog Clarity Enhancement. When TruSurround XT accepts a stereo signal, WOW is enabled for a better listening experience. WOW is also used by Microsoft in the Windows XP Media Player and Windows Media Player 7.

About PowerDVD XP Deluxe
PowerDVD XP 4.0 Deluxe is the latest evolution of the world acclaimed DVD software program that offers maximum video and audio playback entertainment on the PC. It comes complete with numerous customizable video controls, such as screen capture, auto-resume playback, adjustable colorcast controls, and much more, to deliver the highest quality viewing experience. To provide you with a high level of audio enjoyment, PowerDVD XP 4.0 Deluxe now offers advanced new features, such as SRS TruSurround XT. As well, PowerDVD XP 4.0 Deluxe offers advanced navigation and interactive user controls, such as a customizable Toolbar Navigator, the ability to shuttle forward/backward at up to 32x the normal speed, changeable skin designs (with minimized versions), mouse scroll settings, import/export bookmark function, and much more. PowerDVD XP 4.0 Deluxe is guaranteed to deliver the highest quality and personalized DVD playback experience possible on the PC today.

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.

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

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.