SRS Technologies Ship as Standard Features in the Base Audio for the 2005 Toyota Avalon in United States

Toyota is First Car Maker to Ship SRS Technologies in USA

SANTA ANA, Calif., March 23 -- SRS Labs, Inc. , one of the world's leading providers of audio enhancement technology, today announced that Toyota is shipping SRS technologies as standard features in the base sound system of their flagship sedan line, the all-new 2005 Avalon, which is now shipping across the USA. Included are TruBass(R) a psychoacoustic bass enhancement for speakers and headphones, and FOCUS(R) which electronically repositions the audio image for non-optimally located speakers. Toyota is the world's first automotive manufacturer to offer SRS audio technologies as a standard feature in their base audio systems.

Last year, SRS Labs announced that Toyota Japan was offering SRS technologies in dealer option products manufactured by Fujitsu Ten. Fujitsu Ten is a leading original equipment manufacturer (OEM) of automotive entertainment and navigation control systems that often include radio, DVD entertainment, speaker selection and other master controls for the car audio environment. The company is also the original design manufacturer of these new U.S.-based Toyota products, which are offered as the base audio for the Toyota Avalon line. Toyota is the second largest automaker in the world, and the fourth largest in America.

"Toyota's use of our technologies in the base audio systems of select vehicles is a powerful testament to the value of our technologies," said Thomas C.K. Yuen, SRS Labs' chairman and CEO. "The automotive market is key to our long-term growth opportunity, and is part of our diversification strategy for our licensing business. We are pleased to work with an industry leading company such as Toyota, and we are looking forward to many more design wins."

SRS Labs offers a complete suite of audio enhancement and processing technologies for the automotive environment. Included within this suite of audio enhancements are SRS FOCUS and SRS TruBass, both of which solve unique audio challenges for automakers. SRS FOCUS electronically elevates the sound image without physically moving the speakers and also creates a phantom center channel. SRS TruBass is a patented psychoacoustic bass enhancement technology that creates the perception of improved low frequency performance up to an octave below the frequency of the speaker drivers, and improves the bass sound of each speaker reducing the need for a subwoofer, offering further cost savings to automakers.

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.

About Toyota

Established in 1957, Toyota Motor Sales, U.S.A. Inc., is the U.S. sales and marketing arm of Toyota Motor Corporation, with responsibility for the distribution and sale of Toyota and Lexus vehicles in the United States. With more than two million vehicles sold in 2004 and more than 60 percent of those built in North America, Toyota is the fourth-largest car company in the U.S.