SRS Labs Demonstrates Latest Audio Technology Solutions at IFA 2003 in Europe

Company to Demonstrate Audio Technologies for Home Theater; Portable Audio; and Automotive Markets

SANTA ANA, Calif., Aug. 27 -- SRS Labs, Inc. , a leading provider of innovative audio, voice and semiconductor technology solutions, will be showcasing its wide range of technology solutions for the home theater, portable audio and automotive markets at this year's Internationale Funkausstellung (IFA) conference. IFA is Europe's largest consumer electronics exhibition and is being held from August 29 - Sept. 3, 2003 in Berlin, Germany. SRS Labs' booth (Hall 25 - Stand 177) will feature demonstrations of SRS Labs' key technology families, WOW(TM), Circle Surround(R) and TruSurround(R).

Celebrating a decade in audio technology innovation, SRS Labs has become a recognized leader in the advancement of audio and voice technology. Its portfolio of patented technologies includes various techniques for mono and stereo audio enhancement, psychoacoustic bass, voice processing, virtual surround sound, multichannel surround sound and speaker designs. SRS Labs holds over 75 issued patents with over 100 pending in countries around the world. To date, SRS technologies have been shipped or downloaded in over 300 million hardware and software products from over 200 of the world's leading brand names, including Aiwa, Denon, Hitachi, Hughes Network Systems, Kenwood, Marantz, Matsushita, Mitsubishi, Philips, Pioneer, RCA, Samsung, Sharp, Sony, Thomson, Toshiba, Yamaha and Zenith among others.

Members of the press who will be attending IFA should contact Jennifer Drescher at SRS Labs - jenniferd@srslabs.com to setup a private demonstration. Manufacturers who are interested in licensing one of SRS Labs' audio technologies and would like to meet with SRS representatives at IFA should contact Lenka Koloma at SRS Labs - lenka@srslabs.com.

  SRS Labs will be providing the following demonstrations at IFA:

    *  Circle Surround
       SRS Circle Surround ("CS") is a patented and highly versatile
       multichannel audio format that supports a wide range of surround
       sound creation and playback applications.  Circle Surround provides
       the capability to encode up to 6.1 channels of audio for transmission
       or storage over standard two-channel carriers such as CD and stereo
       broadcasts.  It is backward compatible with mono, stereo and most
       matrix surround decoders, with playback performance subject to the
       limitations of the specific decoder; however, optimal results are
       achieved with a Circle Surround decoder.

       Current broadcasters include ABC, CBS, NBC, ESPN, ESPN 2, ESPN HD,
       FOX, FX, TNT, PBS and over a dozen programs including the 2003 Tony
       Awards, 2003 ESPY Awards, X Games, NFL and NBA broadcasts.  The CS
       format is the optimum surround solution for television because it
       enables any network currently telecasting in stereo to now deliver up
       to 6.1 surround sound to its viewers with no change to the
       distribution or broadcast infrastructure.

       Circle Surround decoding is capable of delivering up to 5.1 channels
       of audio from stereo, matrix encoded or CS-encoded material, while
       its successor, Circle Surround II ("CS II") is an even more versatile
       multichannel decoder, capable of delivering a high performance, 6.1
       experience from mono material. CS II technology features patented
       post-processing techniques to enhance the surround sound experience.
       These enhancements include SRS Dialog Clarity(TM), which improves the
       intelligibility and clarity of center channel information, and SRS
       TruBass(R), which uses patented psychoacoustic techniques to increase
       bass performance from any playback system, including those with a
       subwoofer of any size.

       The Circle Surround format is capable of transforming CDs, VHS tapes,
       AM/FM radio or MP3s into incredibly life-like surround sound.  It
       dynamically separates instruments, vocals, and even crowd noises for
       a multichannel surround experience that rivals studio quality
       surround remastering.  To date, Circle Surround decoding has been
       incorporated by leading hardware and software manufacturers
       including: Kenwood, Marantz, Theta Digital, Accuphase, Jaton,
       M-Audio, Orion Studios and Smart Devices.

    *  TruSurround XT
       DVD players and big screen TVs have transformed the household into an
       entertainment center. While DVD owners can enjoy 5.1 or 6.1
       multichannel soundtracks over their home theater systems, most
       televisions and computer playback systems have only two speakers.
       TruSurround solves this problem by processing any audio input source
       (up to 6.1 channels) and transforming the material into a realistic
       effect of multichannel surround sound through a single pair of
       speakers or headphones.  It has been featured in over 15 million
       televisions, DVD players and computer software systems globally
       including products made by Funai Electric, Hughes Network Systems,
       Matsushita, Mitsubishi Electric Corporation, Philips, Pioneer, Sony,
       Thomson Consumer Electronics (RCA) and Toshiba Corporation.

       Based upon TruSurround, the next generation TruSurround XT also
       includes the unique features of SRS Dialog Clarity, which
       dramatically clarifies speech during passages that contain dynamic
       surround sound effects, and SRS TruBass, a psychoacoustic bass
       enhancement technology that provides deep, rich bass down to an
       octave lower than the physical limitations of the speakers.

    *  SRS WOW
       SRS WOW technology is a leading audio enhancement solution for a
       nearly all types of audio products. It provides stunning improvement
       to the fidelity of sound from any size speaker or headphone, ranging
       from ultra miniature size to ordinary sizes.  By the inclusion of
       several legendary SRS technologies, WOW significantly enhances audio
       playback with an immersive sound image and incredible, deep rich bass
       in any electronic piece of equipment, satisfying even the most
       discriminating listeners.

       WOW is an invaluable audio solution for manufacturers of mobile or
       portable devices that have tiny speakers, in addition to products in
       which speakers are located close together, such as televisions and
       desktop PCs.  Hardware and software products that feature WOW include
       mobile phones from Sharp, Microsoft's Windows(R) Media Player series
       of software products, car CD receivers from Kenwood, as well as
       televisions from Sony and Sharp.  WOW is also available in the latest
       Sony VAIO multimedia PC, and popular new portable digital audio
       players from Digitalway, Dioneer, eDigital, iBead, iRiver, and
       Samsung.

  About SRS Labs, Inc.

Celebrating a decade in audio technology innovation, SRS Labs has become 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, DVD players, cell phones, car audio systems and 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. SRS Labs' wholly owned subsidiary, ValenceTech, is a Hong Kong-based 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 above-referenced websites is not incorporated by reference into this press release.