SRS Labs Expands Globally in 2007 Providing Innovative Audio Processing Technologies for an Extensive Range of Products

SRS Labs Expands Globally in 2007 Providing Innovative Audio Processing Technologies for an Extensive Range of Products

- SRS Labs partners with growing list of manufacturers to embed SRS technologies in a wider range of CE products than ever before

- SRS Labs continues to experience growth in target market segments

- SRS launched new technologies for the television and PC markets

SANTA ANA, Calif., Dec. 18 /PRNewswire-FirstCall/ -- SRS Labs, Inc. (NASDAQ:SRSL), a leading provider of surround sound, audio enhancement and voice processing technologies, revealed details today about their business in 2007. SRS Labs, already one of the leading providers of cutting edge audio signal processing solutions, developed several mutually beneficial worldwide business partners, expanded their penetration in key market segments, and launched a number of new technologies designed for the growing mobile media and home entertainment industries.

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Patented audio solutions from SRS Labs have been shipped in more than one billion products worldwide, including flat panel TVs, mobile phones, portable media devices, personal computers, Bluetooth accessories and automotive entertainment systems. SRS audio processing provides the best possible sound for every product form factor and every listening environment.

Flat Panel TV Market

In 2007, three of the top European TV manufacturers, Beko, VESTEL and Profilo, became SRS licensees. Beko is integrating TruSurround XT(R) virtual surround sound technology in all 37-inch and up LCD TVs throughout their new 2007 - 2008 lineup, which includes the Hydra, Piano, Excito and Impeto models. VESTEL is using SRS WOW(R) audio and bass enhancement technology and TruSurround XT on more than 70 models of LCD TVs for the European and South American markets. And Profilo is featuring TruSurround XT in nine LCD and Plasma models, in addition to two distinct Telefunken product lines (Invio and Visium), plus OEM brands like Tevion.

In Q4 2007, Sharp, one of the world's top five LCD brands, became a new licensee of SRS TruSurround XT. TruSurround XT is featured in Sharp's new 2007 - 2008 LCD TV lineup, with more than 50 models, 32-inch and up, targeted for the European and Asian markets. SRS also finalized a multi-year license agreement with LG Electronics for the unlimited use of WOW and TruSurround XT in their flat panel TVs through the year 2010.

SRS TruSurround XT, dominating SRS' 2007 licensing deals for the TV market, is the world's leading patented virtual surround sound technology. It processes up to 6 channels (5.1) of audio information to deliver an engaging virtual 5.1 surround sound experience over only two speakers. SRS TruSurround XT also utilizes additional proprietary audio enhancement techniques from SRS Labs to optimize bass performance using psychoacoustic principles and improve the intelligibility of dialog from video content.

The world's leading TV manufacturers continue to choose SRS Labs as their audio partner of choice because of the flexibility, ease of integration, better overall performance and cost savings benefits provided by SRS technologies. In 2006, SRS technologies were found in 38 percent of the 58 million flat panels that were shipped worldwide. For the first three quarters of 2007, SRS Labs experienced a 48.8 percent increase in units sold featuring SRS IP over the same period in 2006. With global FPTV units predicted to reach 110 million by 2008, according to DisplaySearch, it is clear that this market provides terrific growth opportunity for SRS licensing. Additionally, among the top nine FPTV manufacturers reported by DisplaySearch, seven: Samsung; Sony; Sharp; LG; Panasonic; Hitachi; and Pioneer, feature at least one SRS audio technology in their FPTVs to provide improved virtual surround sound and improved audio quality.

Portable Media Device and Accessory Market

An area where SRS Labs brought on several new licensing partners in 2007 was in the category of portable media devices and accessories. Popular third-party accessory manufacturers for Apple products -- Macally, Intellitouch and Griffin Technology -- licensed and shipped SRS WOW-enabled iPod speaker systems to improve the consumer audio sound quality for iPods. Accessories 4 Technology featured SRS TruSurround(R) virtual surround sound on their innovative and fashionable PSP docking station, which is branded under the Tannoy name. Also in 2007 The Sharper Image extended its marketing agreement with SRS Labs to feature SRS WOW in 2 new over-the-ear headphones, an outdoor wireless speaker system, and a 2.1 CD Stereo System. Additionally, SIRIUS Satellite Radio licensed both SRS FOCUS(TM) and SRS TruBass(R) for the new STILETTO 2, their exciting new portable satellite radio device which begin shipping in November.

From the Korean market, several MP3 manufacturers, including iRiver, choose SRS WOW HD to enhance the audio and bass performance of select models of their portable media players. Additionally, LG Electronics incorporated SRS Mobile HD(TM) surround headphone technology into the LG N1 PDA that includes GPS navigation. Samsung Techwin also became a licensee and is incorporating SRS WOW HD(TM) in several of their popular i series cameras including the new i85 -- the first product to receive a CES2008 Innovations award for the upcoming 2008 International Consumer Electronics Show.

2007 was also the year in which a relatively new market emerged, Bluetooth accessories. SRS enabled several new licensees and products for stereo Bluetooth-enabled headphones and speakers. Realizing the demonstrable improvement SRS WOW HD can provide in A2DP audio quality, key manufacturers turned to SRS Labs to enhance the audio quality of their products. SLAudio, IOGEAR, and Modelabs, became new licensees and marketing partners featuring SRS WOW HD in stereo-enabled Bluetooth Headsets aimed at the portable media market. Additionally, Altec Lansing is adding SRS TruBass bass enhancement technology to the inMotion SoundBlade Wireless Speaker System, which is used with stereo Bluetooth-enabled mobile phones.

Mobile Phone Market

In 2007, Arima Communications, an Original Design Manufacturer (ODM) based in Taiwan, licensed SRS WOW HD for a variety of their high-end Windows Mobile handsets including three, multimedia PDA phones [e.g. Xda Atom Life, Xda Flame and Xda Atom Life Limited Edition]. Both NEC and Motorola also continued to license and use SRS audio technologies in their mobiles phones to enrich the audio experience over headphones and the handset speaker(s). NEC licensed SRS WOW and SRS Dialog Clarity(TM) for use in select handsets, while Motorola featured SRS WOW XT in the MotoQ handsets.

Automotive Market

SRS Labs also saw the integration of the feature-rich SRS CS Auto(TM) technology featured as the optional Premium Package 6-disc, in-dash, CD changer for the 2008 Subaru Impreza. CS Auto creates a thrilling in-vehicle surround sound experience from all audio sources, including surround encoded content, mono or stereo radio broadcasts, satellite radio, HD Radio, standard CD and compressed MP3 music files.

Also in 2007, the Toyota FJ Cruiser featured SRS FOCUS technology which electronically raises the audio image from speakers mounted lower in the door panels up to an optimum listening height -- at ear level. Additionally, both SRS CS Auto and SRS WOW were implemented in numerous line-install and aftermarket automotive head units from JVC, Pioneer, Panasonic, Fujitsu Ten, which is branded under the Eclipse name, and others.

New Technologies and Products Unveiled in 2007

Providing virtual surround sound over only two speakers is a primary technology of SRS Labs and this year the company improved upon the already successful and popular SRS TruSurround technology family, making available SRS TruSurround HD(TM) and SRS TruSurround HD4(TM), which are specifically aimed at flat panel TVs and speaker bars. SRS TruSurround HD, ideal for FPTVs, accepts input from mono, stereo and up to a 7-channel (6.1) audio source and renders surround sound from output speaker configurations ranging from 2.0 to 3.1. On the other hand, SRS TruSurround HD4, which is perfect for speaker bars, process surround sound for playback over front oriented speaker configurations ranging from 4.0 to 5.1 channels. The proprietary algorithms also optimize bass performance, enable surround channel mix and center channel adjustments, provide better intelligibility of vocals, and deliver maximum high-frequency clarity.

SRS also saw a highly successful launch of the SRS iWOW 2.0 consumer plug-in for iTunes on the Mac. iWOW 2.0, based on its heavily adopted and award-winning predecessor, iWOW, includes advanced new features to offer Mac users preset options and a 5.1 movie headphone mode.

"SRS Labs is pleased with the progress we have experienced in 2007 and anticipate that 2008 will be even more prolific with new opportunities for growth in several key markets, especially flat panels TVs and all forms of portable media," said Tom Yuen, President of SRS Labs.

About SRS Labs, Inc. SRS Labs is a leader in audio signal processing for consumer electronics. Founded in 1993, SRS Labs holds 129 worldwide patents, with another 34 pending, for advanced audio, voice and surround sound technologies that optimize and improve the listening experience through techniques based on research into the human auditory system. Through partnerships with leading global manufacturers and semiconductor and software partners, over one billion products have shipped worldwide utilizing SRS audio technologies, primarily from one of three main technology families, SRS WOW(R), SRS TruSurround(R) and SRS Circle Surround(R). SRS Labs audio and voice processing provides the best possible sound from all content and in every environment including HDTVs, mobile phones, portable media devices, A/V components, PCs and automotive entertainment. And with 38 percent of the 58 million flat panel televisions shipped in 2006 featuring SRS audio processing, SRS Labs is the de-facto standard of HDTV audio processing. Additionally, SRS Labs surround sound solutions provide the professional broadcast and recording industries with high-performance production, back-haul, storage, and transmission capability. SRS Labs supports manufacturers worldwide with offices in the US, China, Europe, Japan, Korea and Taiwan. For more information, visit http://www.srslabs.com/

Except for historical information contained in this release, statements in this release, including those by Mr. Yuen, may constitute forward-looking statements regarding our assumptions, projections, expectations, targets, intentions or beliefs about future events 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 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.

SRS Labs, Inc. Contact: Press Contact:
Cyndee Pelino, Marketing Manager Jim Noyd, Noyd Communications Inc.
949-442-5518 310-374-8100
cyndeep@srslabs.comjim.noyd@noydcom.com

First Call Analyst:
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Source: SRS Labs, Inc.

CONTACT: Cyndee Pelino, Marketing Manager of SRS Labs, Inc.,
+1-949-442-5518, cyndeep@srslabs.com; or Jim Noyd of Noyd Communications Inc.,
+1-310-374-8100, jim.noyd@noydcom.com, for SRS Labs, Inc.

Web site:

http://www.srslabs.com/

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