Johnson Controls Licenses SRS Labs' TruSurround(R) XT Headphone Technology for North American Automotive Market

Industry Leaders Join Forces to Offer TruSurround XT for AutoVision(R) DVD System Rear-Seat Entertainment Systems

SANTA ANA, Calif., Oct. 18 -- SRS Labs, Inc. , a leading provider of innovative audio, voice and semiconductor technology solutions, today announced that the Automotive Group of Johnson Controls, Inc. has licensed SRS TruSurround and TruSurround XT(R) Headphone technologies for their AutoVision(R) rear-seat entertainment systems. Johnson Controls, a leading supplier of automotive interior products, is offering the SRS technologies as an optional feature to their customers worldwide. SRS' TruSurround XT Headphone is a customized headphone version of the company's TruSurround virtual surround sound technology, which is the established standard for creating a two-speaker surround sound experience from any surround-encoded source, such as a DVD movie or game.

SRS Labs worked closely with Johnson Controls to develop an optimized headphone solution for the AutoVision DVD system, which is typically equipped with wireless headphones and a remote control unit. The headphones provide a convenient, "wire-free" environment, while allowing the passengers to have complete control over their entertainment experience.

"We are excited to be working with a leader for family entertainment systems in the United States," said Todd Goulart, account executive for SRS Labs. "Our technologies address the inherent challenges in car audio configurations without adding substantial cost to the manufacturer. These benefits offer automakers a competitive advantage by including our state-of- the-art audio technologies in their products, which reinforces our strategy for growth in the automotive marketplace."

TruSurround XT delivers a premium virtual surround sound experience from any multichannel source, transforming the material into breathtaking virtual surround sound over two speakers or headphones. It is ideal for music, gaming and rear seat entertainment headphone systems. For surround-encoded DVD movies or games, this solution delivers the best available virtualized surround sound experience. Two powerful audio techniques are included in TruSurround XT that further increase the quality of the headphone experience. SRS Dialog Clarity(TM) improves dialog intelligibility during passages of movies where soundtracks have been mixed for cinema sound systems and loaded with the latest special audio effects. This patented SRS algorithm enhances signal clarity, thus dramatically improving dialog intelligibility. SRS TruBass(R), a patented bass enhancement technology, delivers deep, rich bass over small speakers and headphones for improved low frequency performance up to an octave below the limitations of the speaker drivers.

SRS Labs' automotive entertainment solutions suites are currently available for license by analog or DSP platform providers and consumer electronics manufacturers worldwide. For more information on SRS technologies and to hear demonstrations online, visit www.srslabs.com. To license SRS automotive technologies, contact Todd Goulart at 949-442-1070 ext. 5036 or toddg@srslabs.com

About TruSurround/TruSurround XT

The TruSurround family of technologies delivers an immersive home-theater surround sound experience from multi-channel audio material, including MPEG 1 and 2, over standard stereo speakers or headphones. The original TruSurround technology has become the established standard for the virtualization of 5.1 surround sound over two-speaker systems and has been featured in over 20 million products globally from such household names as Hughes Network Systems, Matsushita, Mitsubishi Electric Corporation, Philips, Pioneer, Sony, Thomson Consumer Electronics, and Toshiba Corporation. The next generation version, TruSurround XT, includes SRS TruBass bass enhancement and SRS Dialog Clarity for improved dialog intelligibility, two powerful and patented technologies that make it an invaluable solution for manufacturers. TruSurround and TruSurround XT are applicable to DVD players, televisions, set-top boxes, video game consoles, family automotive entertainment systems and A/V surround sound receivers.

For more information on licensing SRS technology, contact sales@srslabs.com. To hear an online demonstration of TruSurround, visit www.srslabs.com/LicensingTechMultichannel.asp.

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.