Circuit Research Labs Reports Second Quarter, Six Month Results.

TEMPE, Ariz.--(BUSINESS WIRE)--August 15, 1997--Circuit Research Labs, Inc. (The Nasdaq Stock Market:CRLI) today announced unaudited results for the second quarter and six months ended June 30, 1997. -0-

             Circuit Research Labs, Inc. and Subsidiaries
            Consolidated Condensed Statements of Operations
                              (Unaudited)


                     Three Months Ended        Six Months Ended
                          June 30,                 June 30,
                       1997         1996        1997       1996

Net Sales          $  506,287   $ 599,761   $1,017,139  $1,238,292
Net Income (Loss)  $ (51,218)   $  30,970   $  (50,405) $   52,202
Net Income (Loss)
 per Common Share  $    (.09)   $     .05   $     (.08) $      .09
Weighted Average
 Number of Common
  Shares Outstanding 597,682      597,682      597,682     597,682

According to Ronald J. Jones, Chairman, President and CEO of Circuit Research Labs, "Slower domestic and international sales in 1997 and a large, single international order in 1996 contributed to the drop in revenue in this year's second quarter and six month periods. The decrease in revenue, increase in percentage of cost of goods sold, and decrease in operating expenses resulted in a loss in 1997. However, we expect to increase the levels of our sales in future quarter through increased marketing efforts and an increased acceptance of CRL's new products."

Mr. Jones concluded, "The Company continues to maintain a strong financial position, with net working capital of $1,155,000 and a current ratio of 6.9 to 1." -0-

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Management's anticipation of future events is based upon assumptions regarding levels of competition, research and development results, raw material markets, the markets in which the Company operates, and stability of the regulatory environment. Any of these assumptions could prove inaccurate, and therefore there can be no assurance that the forward-looking information will prove to be accurate.

Circuit Research Labs, Inc. manufactures and markets high quality electronic audio processing, transmission encoding and noise reduction equipment for the worldwide radio, television and professional audio markets. The Company's DP-100 FM digital processor utilizes state-of-the-art digital technology to produce superior audio quality. CRL's SC-100 RDS/RBDS (Radio Data Systems/Radio Broadcast Data Systems) allows FM radio stations to transmit text messages to "smart radios" for station call letter and slogan recognition, traffic and weather reports, and display advertising, among other uses.

CONTACT: Circuit Research Labs, Inc.

Ronald R. Jones

Chairman, President & CEO

[phone]

or

INVESTOR RELATIONS COUNSEL:

The Equity Group Inc.

Caroline Royall [phone]

Linda Latman [phone]