Panasonic Launches First Mobile CD and DVD Receivers With SRS Circle Surround Automotive(TM) for U.S. Market

One of the World's Largest Providers of Automotive Aftermarket Products, Panasonic Selects SRS Circle Surround Automotive

LAS VEGAS, Jan. 5 -- Maintaining its position at the forefront of new and exciting technologies, Panasonic announces the launch of the first mobile CD and DVD receivers to include Circle Surround Automotive(TM) from SRS Labs, Inc. , a leading provider of innovative audio, voice and semiconductor technology solutions. These products are the first to launch in the United States under a new licensing agreement between SRS Labs and Panasonic. SRS Circle Surround Automotive, which was launched to the market last year at CES, is the only surround decoding solution that includes post processing techniques that enhance the surround experience in the automotive environment. Panasonic is one of the world's largest providers of aftermarket products for the automotive market. Demonstrations of Circle Surround Automotive will be held in Panasonic's booth #9447 and SRS Labs' booth #6516 from January 6-9, 2005 at CES, one of the consumer electronics industry's largest trade events.

The first models to ship with Circle Surround Automotive under this new agreement for the United States market include three CD Receivers: CQ-C9901U, CQ-C9801U and CQ-C9701U, and CQ-VD7001U, an In-Dash LCD DVDXM Receiver. Circle Surround Automotive as implemented by Panasonic is designed for a 5.1 audio experience over a 4-speaker system. The new products will be available at selected retailers beginning in February 2005.

"This new relationship further strengthens our product line and our commitment to providing consumers with the most advanced technologies for the car environment," said Rob Lopez, Group Manager for Panasonic Mobile Electronics Group.

Circle Surround Automotive creates a thrilling in-vehicle surround sound experience from any audio material over a four or more speaker system. With Circle Surround Automotive, great sound is not limited to a single sweet spot. And best of all it delivers surround sound from any audio source, including mono or stereo traditional radio broadcasts, satellite radio, digital broadcasts from HD Radio(TM), standard CD and compressed music from a portable media player. It is the only multi-channel decoding solution complete with enhancement techniques that can be customized to solve the unique audio challenges of the automotive environment, even creating the perception of a center speaker if one is not installed. It doesn't just bring surround sound to a vehicle -- it also improves the quality of the audio experience.

"We are excited to work with Panasonic on this launch of the first Circle Surround Automotive aftermarket products in the United States," said Todd Goulart, SRS sales executive for car audio products. "This gives consumers an exciting home theater experience in their car and reinforces our commitment to working with the world's leading manufacturers."

The most powerful benefit of Circle Surround Automotive is that it includes a variety of post processing techniques that can be activated by the consumer to tailor the audio experience in their automobile. This flexibility allows consumers to receive the best audio results for each car's configuration. The key user variable features included in the Panasonic products are:

   SRS FOCUS(R) Technology
   FOCUS elevates the perception of a sound image to compensate for
   non-optimally placed speakers from a lower location such as in a car door
   or under the dashboard.  It is not based on phase and time shifting of
   the original sound source, so the reproduced sound is very natural.  The
   Panasonic units include a user variable control from 0 to 10 that
   determines the amount of stereo image elevation that is applied to the
   audio signal, thereby determining the perceived height of the sound field
   relative to the listener and the placement of the speakers.  Since door
   speakers are usually located low in the doors, they will require more
   FOCUS processing than speakers in the dashboard.  FOCUS can be applied to
   the front and/or rear speakers and has the added benefit of providing
   definition and clarity to the high end.

   SRS TruBass(R) Technology
   TruBass is a patented psychoacoustic technology that produces the
   perception of improved low frequency performance up to an octave below
   the F0 of the actual speaker drivers.  The Panasonic units include two
   TruBass settings.  The first is a user variable processing control that
   determines the amount of additional bass signal that is mixed into the
   final output.  The second is a speaker size setting from small, medium to
   large that allows a consumer to indicate the size of the installed
   speakers.  TruBass can be applied to the front and/or rear speakers or
   subwoofer if one is present.

   Channel Mixing
   Our Mix To Rear function allows front and center channel contents to be
   mixed to the surround channels.  This control ranges from 0 to 10 enables
   passengers in large vehicles to also enjoy the vocals, which normally are
   heard through the front center speaker.

Circle Surround is also an encoding format that is used by radio, TV and music companies to deliver up to 6.1 channels of full bandwidth surround sound over a two-channel infrastructure or delivery method, such as a traditional CD, AM/FM airwaves and cable and broadcast television. It is also the only certified surround solution compatible for the HD Radio technology format from iBiquity, which enables digital radio signals to ride the same airwaves as existing analog AM/FM radio signals.

SRS Labs' automotive technology solutions suites are currently available for license by automakers and manufacturers of both factory installed equipment as well as aftermarket electronics. Companies currently featuring SRS technologies in their products include Honda, Toyota, Kenwood, Eclipse, Volkswagen, and Johnson Control. For more information on SRS technologies and to hear demonstrations online, visit www.srslabs.com. To license SRS technologies contact: toddg@srslabs.com.

About Circle Surround(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. In September 2004, SRS Labs formed a strategic alliance with Coming Home Studios ("CHS"), one of LA's hottest new full service television and DVD production companies, to create and distribute live concert DVDs in SRS Circle Surround. CHS has produced many of today's top DVDs including Dave Matthews Band -- The Central Park Concert, Gloria Estefan -- Live & Unwrapped, Rush -- Live in Rio, and many others. Recent DVDs encoded in Circle Surround from this exciting new partnership include: Matchbox Twenty's SHOW -- A Night In The Life Of Matchbox Twenty, Boz Scaggs' Greatest Hits Live and Godsmack -- Changes. Lava Records, EMI Hong Kong and Arbors Jazz have also distributed music CDs. One of the most powerful features of the technology for music CDs is that it is 100 percent compatible with all playback environments, from headphone to one-speaker mono to two-speaker stereo or multi-speaker surround sound. One mix now satisfies every playback system.

The CS format is the optimum surround solution for television and radio because it enables any TV or radio broadcaster currently delivering their content 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 for dozens of 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. For the U.S. market, it is the only surround format approved by iBiquity Digital for its HD Radio technology, which is the only FCC-approved system that provides digital broadcasting within the existing AM and FM spectrum and also supports analog broadcasts to legacy receivers. Abroad, both TOKYO FM in Japan and Guangdong Radio in China, which have audiences in the hundreds of millions, regularly broadcast material in Circle Surround.

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, which improves the intelligibility and clarity of center channel information such as dialog, and SRS TruBass, which uses patented psychoacoustic techniques to deliver deep, rich bass from any playback system, including those with or without a subwoofer.

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.