SRS Circle Surround II A/V Systems Offered By Honda As Dealer Option in Japan

Honda's Entertainment and Navigation Control Systems Containing Circle Surround II for Automotive Multichannel Technology Offered as a Dealer Option in Japan

SANTA ANA, Calif., Aug. 11 -- SRS Labs, Inc. , a leading provider of innovative audio, voice and semiconductor technology solutions, today announced that Honda is offering their new multichannel car surround A/V system with SRS Labs' Circle Surround II ("CS II") for Automotive as a dealer option for all new model cars sold in Japan. The Honda entertainment and navigation control system, manufactured by leading automotive entertainment OEM Fujitsu Ten, features SRS Circle Surround II multichannel technology and is unique because it can deliver powerful and immersive multichannel surround sound in any multi-speaker car environment from stereo and up to four channels of surround sound. The dealer option sound system is also now available to consumers in Japan who own older model Honda cars and wish to upgrade their entertainment systems.

Most cars are equipped with four or more speakers and yet are unable to experience surround sound. Circle Surround II solves this problem and delivers a surround sound experience over those speakers by creating a "phantom" center channel for cars with no center speaker. CS II for Automotive includes SRS FOCUS(R), which raises the sound image from door mounted speakers up to ear level where it should be, and SRS TruBass(R), which delivers psychoacoustic bass enhancement that eliminates the need for a subwoofer. Of course, Circle Surround II also delivers surround sound over more than four speakers, if the car is so equipped. When playing a 5.1-channel surround sound DVD, CS-encoded compact disc, or listening to stereo or surround broadcasting content, Circle Surround II provides a home theater experience in any automobile. The addition of SRS FOCUS elevates the sound image from non-optimally located speakers, making the speakers sound as if they are positioned at ear level.

Honda's new dealer option premium entertainment and navigation control systems include a 20GB hard disk drive for storage of thousands of digital music files, DVD and CD entertainment as well as radio, speaker selection and other master controls that turn the car audio environment into a mobile home theater. Consumers in Japan who order the dealer option system with CS II for Automotive can immediately enjoy a thrilling surround sound experience from their installed four-speaker system without incurring the extra expense or time required to install a center speaker or subwoofer.

"The popularity of Circle Surround is exploding in Japan as many new automobile manufacturers are realizing the immense market value a premium surround sound-capable entertainment system provides to customers," said Hank Kato, sales manager for SRS Labs in Japan. "With the adoption of Circle Surround encoding technology by broadcasting giant TOKYO FM and others, the demand for Circle Surround-capable receivers is growing very quickly because one of its most powerful features is that it creates incredible surround sound from any stereo or multichannel source."

About Circle Surround(R) and Circle Surround II(R)

Circle Surround ("CS") is a patented and highly versatile multichannel audio encoding and decoding technology capable of supporting a wide range of surround sound creation and playback applications. CS hardware and software encoders can encode up to 6.1 channels of discrete audio for distribution over existing two-channel carriers such as broadcast television, cable and satellite transmission, streaming media over the Internet, CDs and VHS tapes. The next generation of Circle Surround is Circle Surround II ("CS II"), a powerful and versatile multichannel decoder capable of delivering up to 6.1 channels of audio from any mono, stereo, matrix-encoded, or Circle Surround-encoded material.

Circle Surround encoding has made inroads to many of Hollywood's most influential creative talent and professional broadcasters. 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 to its listeners or viewers with no change to the distribution or broadcast infrastructure. Top television broadcasters in the U.S. and abroad, who have adopted Circle Surround technology include ABC, CBS, NBC, ESPN, ESPN 2, ESPN HD, FOX, FX, TNT, PBS and over two dozen programs including the 55th Annual Prime Time Emmy Awards, X Games, NFL and NBA broadcasts. Circle Surround is also quickly being adopted as the surround encoding technology of choice for radio broadcasting in the U.S. and abroad by companies such as HD Radio, which is the standard for digital radio broadcasting in the U.S., TOKYO FM in Japan and Guangdong Radio in China, which have audiences in the hundreds of millions. CS is also widely used by music and video entertainment companies, including Lava records, a prestigious music label, and Coming Home Studios, one of the hottest independent full service television and music DVD companies that creates and distributes live concert DVDs. Concert DVDs mixed in Circle Surround include Matchbox Twenty's SHOW -- A Night In The Life Of Matchbox Twenty, Boz Scaggs' Greatest Hits Live, and Rush in Rio.

To date, Circle Surround decoding has been incorporated by leading hardware and software manufacturers including: Kenwood, Marantz, Motorola, Theta Digital, Accuphase, M-Audio, Orion Studios and Smart Devices. A wide range of analog and digital implementation options for CS and CS II are available from the SRS Labs' family of platform partners including AKM, Analog Devices, ASP Microelectronics, Cirrus Logic, Philips Semiconductor, STMicroelectronics and Texas Instruments. CS II features patented post-processing techniques to enhance the surround sound experience, including SRS Dialog Clarity(TM), which improves the intelligibility and clarity of center channel information such as dialog, and SRS TruBass(R), which uses patented psychoacoustic techniques to deliver deep, rich bass from any playback system, including those with or without a subwoofer.

For information on hardware and software products to deliver Circle Surround, contact sales@srslabs.com. For more information on SRS Labs, Inc. broadcast and professional audio line, please visit: www.srslabs.com/MainProAudio.asp.

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, flat panel displays, DVD players, mobile 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. 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 aforementioned website is not incorporated by reference into this press release.