SanDisk Licenses SRS WOW(R) Technology for Global MP3 Player Market

SanDisk Licenses SRS WOW(R) Technology for Global MP3 Player Market

Patented WOW Audio Technology Continues to Dominate Digital Music Player Market

SANTA ANA, Calif., May 11 /PRNewswire-FirstCall/ -- SRS Labs, Inc. (NASDAQ:SRSL), one of the world's leading providers of audio enhancement technology, today announced that SanDisk(R), the world's largest supplier of flash memory data storage card products, has licensed SRS WOW(R) 3D audio and bass enhancement technology for a variety of new SanDisk Sansa(TM) flash-based MP3 music players. The first two models to include the patented SRS technology are the e130 and e140 MP3 players, which are available this month through major retail stores nationwide. SRS WOW, the world's leading 3D audio enhancement technology solution for portable audio device manufacturers, significantly improves the audio quality of any file played in a portable media device product.

SanDisk is the world's largest supplier of flash memory data storage card products, and they just recently jumped into the flash-based MP3 market. SanDisk selected SRS WOW to bring advanced features to its product line and to leverage the WOW brand name through its distribution channel.

"Licensing SRS WOW allows us to significantly enhance the sound quality of our Sansa music players and deliver a product with the audio performance that our customers expect from SanDisk," said Eric Bone, director of retail product marketing at SanDisk. "The combination of our winning MP3 designs and the SRS WOW audio features provide consumers around the world with the best quality digital audio experience possible."

"This partnership with a market leader like SanDisk is further testament to the fact that our SRS WOW technology has made tremendous inroads in the digital MP3 market," said Joanna Skrdlant, director of emerging markets and platform development for SRS Labs. "SanDisk's adoption of SRS WOW is an important high-profile design win for SRS Labs, which will elevate the SRS WOW brand in the 57 million unit-a-year global MP3 player market. We look forward to broadening our relationship with SanDisk through joint marketing efforts and innovative product advancements."

SRS WOW is a complete and scaleable suite of 3D audio, bass enhancement, mono and stereo speaker technologies that can be customized by portable audio manufacturers to improve the quality of any audio played on any digital audio player. WOW is a "must have" feature for portable audio players as it solves several of the player's most serious challenges, including the delivery of 3D stereo audio separation and the creation of deep, powerful bass for music played over headphones or earbuds. These challenges are solved through two of the key components of WOW; SRS(R) 3D audio technology and TruBass(R) technology. SRS 3D restores spatial information masked by recording and compression techniques and delivers an incredibly detailed and immersive 3D audio experience. TruBass provides a deep, rich bass, up to an octave below the physical capabilities of the speaker or headphone driver.

To date, over 600 million hardware and software products that include WOW have shipped or been downloaded. The technology continues to be the first choice for manufacturers due to its flexibility, ease of integration, and better overall audio performance. Among the products that currently feature WOW are digital audio players from eDigital, Hyunwon, iBead, iRiver, LG Electronics, Olympus, RIO Japan, Samsung and now Sandisk; personal computers from Sony and Toshiba; mobile phones from NEC, the number one handset maker in Japan, and Samsung, the number one handset maker in Korea; as well as LCD, plasma and traditional television sets from LG, Metz, Onida, Samsung, Sony and Toshiba; and Microsoft's Windows Media Player Series of software products.

About SRS Labs Inc.

SRS Labs is a recognized leader in the advancement of audio and voice technology. The company works with the world's top manufacturers to provide a richer entertainment experience through patented sound techniques. SRS Labs' technologies can be heard through products ranging from televisions, LCD and plasma monitors, DVD players, cell phones, car audio systems, headphones and notebook and desktop computers. The company also offers hardware and software tools to professionals and consumers for the creation, production and broadcast of content featuring SRS Labs' technologies. Valence Technologies Limited, a Hong-Kong based subsidiary of SRS Labs, is a semiconductor company that designs and sells custom ASICs and standard ICs to leading manufacturers worldwide. Based in Santa Ana, Calif., the company also has licensing representation in Hong Kong, Japan, Europe, and Korea. For more information about SRS Labs, Inc. please visit www.srslabs.com. The information on the aforementioned website 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 SRS Labs and SanDisk's failure to work together on future marketing efforts and new products, 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

(C) 2005 SRS Labs. All rights reserved. SRS, SRS 3D Audio, WOW, TruBass and the SRS logo are all trademarks of SRS Labs, Inc. All other brand names mentioned are trademarks of their respective holders.

Investor Contact: Media Contact:
Tami Yanito Stegmaier Chris Locke
(949) 442-1070 x 3093 (949) 442-1070 x 3206
tami@srslabs.comchrisl@srslabs.com

Source: SRS Labs, Inc.

CONTACT: Investors, Tami Yanito Stegmaier, ext. 3093, tami@srslabs.com,
or Media, Chris Locke, ext. 3206, chrisl@srslabs.com, both of SRS Labs, Inc.,
+1-949-442-1070

Web site: http://www.srslabs.com/

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