SRS Labs' WOW Stereo Enhancement Technology Goes Mobile With New Kenwood Car CD Receivers

 Kenwood Markets SRS WOW as Key New Audio Feature in 2003 Line of In-Dash CD
                                  Receivers

    SANTA ANA, Calif., Feb. 4 -- SRS Labs, Inc. , a leading provider of innovative audio, voice
and ASIC technology solutions, today announced that Kenwood has included SRS
WOW(TM) as Kenwood's premier audio feature in its new 2003 line of in-dash CD
receivers.  Kenwood introduced its new 2003 models, including the three that
feature SRS WOW, at last month's Consumer Electronics Show in Las Vegas.
These products mark the first time that WOW audio processing has been
incorporated into car audio products on a worldwide basis.
    WOW provides three primary benefits to mobile audio listeners including
1) it elevates sound vertically, which is useful in vehicles where speakers
are often located in kick panels and other low areas, 2) it creates the
perception of a three-dimensional sound field, including a pronounced center
channel, using conventional two-channel stereo sources, and 3) it uses bass
harmonics to create the aural impression of very low frequencies, even from
small speakers.
    Brian Towne, director of product management for Kenwood USA said, "Kenwood
car products meet the need of mobile entertainment enthusiasts and it's the
inclusion of a superior audio technology, such as SRS WOW, that enables us to
continue to make products practical and affordable that offer cutting edge
technology.  We are pleased to be the first products for the mobile market
that include SRS WOW and feel we are in an excellent position to increase our
receiver market share for the fourth consecutive year."
    Kenwood's 2003 line of competition-grade Excelon(TM) mobile CD receivers
feature two models equipped with SRS WOW sound enhancement technology, the
Kenwood Excelon KDC-X969 and KDC-X869.  The company also introduced its 2003
line of Kenwood-branded in-dash CD receivers featuring the KDC-MP922 model,
which also includes SRS WOW and is one of four models that play MP3 files
using new high-speed file access technology.
    Thomas C.K. Yuen, chairman and CEO of SRS Labs said, "These new car audio
receivers from Kenwood featuring WOW are a prime example of our strategy to
expand our relationships with current OEM customers across different product
lines.  We intend to focus on similar opportunities to expand business with
other OEMs using this 'penetrate and expand' business strategy."

    About Kenwood
    Founded in 1961, Kenwood USA Corporation is a leading developer and
manufacturer of audio and video products for home, car, and personal use.
Offering more than 250 products, Kenwood is one of the three largest selling
brands of audio and video entertainment products in the United States and is
recognized by consumers and the consumer electronics industry for providing
superior quality, reliability and value.  Kenwood USA Corporation, based in
Long Beach, Calif., is the largest subsidiary of Kenwood Corporation (Japan).
Further information can be obtained by contacting Kenwood USA Corporation,
P.O. Box 22745, Long Beach, CA 90801, by calling 1-800-Kenwood, or by visiting
http://www.kenwoodusa.com .

    About SRS Labs Inc.
    SRS Labs, Inc. ( http://www.srslabs.com ) and its subsidiaries provide advanced
technology solutions for high volume and/or high growth consumer markets,
including home theater, PC/multimedia, automotive, portable audio, and
wireless devices.  SRS Labs, the parent company, develops the core audio
and voice technologies and licenses these patented technologies to over
200 well-known manufacturers and semiconductor companies, including Sony, RCA,
Panasonic, Philips, Kenwood, Mitsubishi, Hitachi, Microsoft, and Pioneer.
ValenceTech, Ltd., ( http://www.valencetech.com ) SRS Labs' Hong Kong-based
subsidiary, is a leading designer of custom application specific integrated
circuits (ASICs) and standard ICs for the world's leading manufacturers of
consumer electronics, game consoles, telecommunications and computer products.
Valence has an extensive library of analog, digital and mixed signal macro
cells and broad range of intellectual property for ICs.  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.  The
information on the above-referenced websites is not incorporated by reference
into this press release.

    For further information please contact:  Investor, Tami Yanito, ext. 3093,
tami@srslabs.com , or Media, Jennifer Drescher, ext. 5010,
jenniferd@srslabs.com , both of SRS Labs, Inc., +1-949-442-1070.