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SRS Circle Surround(R) Selected for New Hit MTV Show 'Nokia Unwired at Hard Rock Live'

MTV and Fearless Entertainment, to Produce 20 Shows With SRS Circle Surround Logo Visible Throughout Show

SANTA ANA, Calif., Aug. 2 /PRNewswire-FirstCall/ -- SRS Labs, Inc. (NASDAQ:SRSL) , one of the world's leading providers of audio enhancement technology, today announced that Music Television, ("MTV"), and Fearless Entertainment, is producing the hot new music concert television show, "Nokia Unwired at Hard Rock Live," in SRS Circle Surround(R) 5.1 ("CS"). MTV is running 20 episodes throughout this summer. At the top of the program, the SRS CS logo is prominently displayed on screen, informing millions of viewers that they are enjoying the live concert footage in SRS Circle Surround. "Nokia Unwired at Hard Rock Live" gives viewers front row seats to the hottest artists in hip-hop, rock, punk and pop, including the Ying Yang Twins, My Chemical Romance, Weezer, Mike Jones, Good Charlotte and more.

Fearless Entertainment selected SRS CS because they were looking for a cutting-edge method of broadcasting surround sound. "My aim is to give my listeners the next best thing to being at a live concert," said Lance Vardis, audio producer of the "Nokia Unwired at Hard Rock Live." "With SRS Circle Surround, listeners can experience the creative intent that the artists desire, and I am able to deliver a full 5.1 surround experience using the existing two channel transmission infrastructure."

By using SRS CS, networks can transmit the audio sensation of the live event directly to the viewer by using industry-standard stereo broadcasting as a carrier for surround sound. The patented CS technology allows professional audio engineers to encode up to 6.1 channels of discrete audio for distribution or broadcast over existing two-channel carriers such as standard definition and high definition television, analog and digital radio, streaming media, CDs and VHS tapes.

"We are delighted that Fearless Entertainment has selected Circle Surround as their multichannel broadcast technology," said Mike Canevaro, SRS Labs' director of strategic development, surround technologies. "With more manufacturers than ever including Circle Surround decoders in their products, trend-setting networks understand the powerful benefits of offering surround sound programming to their audiences. We think the MTV listening audience will enjoy SRS Circle Surround as the powerful, immersive surround experience that it is, and we look forward to working on many more programs such as this."

SRS CS encoding is backward compatible with all playback systems, including mono and stereo formats. Listeners of the MTV' broadcasts who have a Circle Surround or other matrix surround decoder installed, will hear a stunning 5.1 surround sound experience, while those listening over regular two-speaker stereo systems will hear the broadcast in enhanced stereo. This program, and others like it, not only contributes to the growing demand by consumers for SRS CS content, but also for consumer electronic products with SRS CS decoders, as well as the SRS brand in general. For audio enthusiasts looking for Circle Surround II decoding technology, it is currently available from manufacturers such as Marantz, Accuphase, Pioneer, Theta Digital, Motorola and Yamaha.

To date, over 500 million television viewers have experienced Circle Surround, and over 300,000 DVDs and CDs have been distributed that include SRS CS. The technology continues to be a popular choice for broadcasters and professional audio mixers due to its flexibility, ease-of-use, and overall audio performance. Top television broadcasters in the United States and abroad, who have transmitted Circle Surround-encoded programs include ABC, CBS, NBC, ESPN, ESPN 2, ESPN HD, FOX, FX, TNT, PBS, and now MTV for dozens of TV programs.

For more information about SRS Circle Surround, or to hear a demonstration, go to: http://www.srslabs.com/ProAudio_CircleSurround.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, LCD and plasma monitors, cell phones, MP3 players, car audio systems, 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. Valence Technologies Limited, a Hong-Kong based subsidiary of SRS Labs, is a 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.

Except for historical information contained in this release, statements in this release including those by Mr. Canevaro in paragraph four are forward- looking statements and projections (which include statements concerning plans and objectives of management for future operations) that are based on management's belief, as well as assumptions made by, and information currently available to, management. While the Company believes that its expectations are based upon reasonable assumptions, there can be no assurances that the Company's goals and strategy will be realized. Numerous factors, including risks and uncertainties, may affect the Company's actual results and may cause results to differ materially from those expressed in forward-looking statements made by or on behalf of the Company. Some of these factors include the company's ability to work with MTV on future broadcasting projects, the acceptance of new SRS Labs' products and technologies, the impact of competitive products and pricing, the timely development and release of technologies by the Company, general business and economic conditions, especially in Asia, and other factors detailed in the Company's Form 10-K and other periodic reports filed with the SEC. SRS Labs specifically disclaims any obligation to update or revise any forward-looking statement whether as a result of new information, future developments or otherwise

SRS Labs Investor Contact: SRS Labs Media Contact:
Tami Stegmaier Chris Locke
(949) 442-1070 x 3093 (949) 442-1070 x 3206 Cell: (714) 403-1855
tami@srslabs.com chrisl@srslabs.com

Source: SRS Labs, Inc.

CONTACT: Investors, Tami Stegmaier, +1-949-442-1070, ext. 3093,
tami@srslabs.com, or Media, Chris Locke, +1-949-442-1070, ext. 3206, cell,
+1-714-403-1855, chrisl@srslabs.com, for SRS Labs, Inc.

Web site: http://www.srslabs.com/

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