SRS Labs Debuts SRS Mobile HD Audio Technology for Mobile Video Services.

LAS VEGAS -- Available First on the Microsoft Windows Mobile Operating System, SRS Mobile HD Renders Discrete Surround Sound on Headphones for Video Downloads and DVB-H Applications

SRS Labs, (NASDAQ:SRSL), a leading supplier of audio technology solutions, today unveiled the new SRS Mobile HD(TM) audio technology for mobile video services. Designed for mobile broadcast services like Digital Video Broadcast - Handheld ("DVB-H") and for digital video downloads, SRS Mobile HD enables true 5.1 surround sound on headphones for mobile phones and portable media centers. Available first on the Microsoft Windows Mobile Operating System, SRS Labs is working to make this new technology available for license to existing and new Windows Mobile customers.

Mobile handset, headphone, and portable media center makers can use SRS Mobile HD to take advantage of the growing amount of composite surround content becoming available on digital services. Popular shows with surround sound such as ESPN's Winter X-Games are already available for digital purchase or over-the-air download. Laptops, ultra mobile personal computers, and portable DVD players can also use SRS Mobile HD to render multichannel surround audio from DVDs and digital media files to enable a home theater experience over headphones.

"Windows Mobile helps people access critical business information and high-quality entertainment on-the-go," said Peter Bernard, group marketing manager, Mobile and Embedded Devices Division at Microsoft Corp. "SRS Mobile HD's home theater audio offers a new level of high quality audio on Windows Mobile devices and illustrates the innovation being delivered by our partners around media on Windows Mobile."

"The explosion of HDTV means that consumers now expect surround sound audio. The rapid ramp of portable digital video and broadcast is now carrying that surround sound expectation to new devices," said David Frerichs, executive vice president of strategic marketing and corporate development at SRS Labs. "We aim to fulfill those expectations with SRS Mobile HD."

SRS Mobile HD audio renders multichannel, composite surround, and stereo content on a 5.1 virtual speaker system over headphones. Designed specifically for mobile applications, SRS Mobile HD has very low resource requirements and works with broadcast, over-the-air, and side-loaded content. SRS Mobile HD also includes a music mode that optimizes music playback using the functionality of SRS WOW HD. This allows devices with SRS Mobile HD to have the best possible audio playback for both video and music content.

SRS Mobile HD is available immediately on the Microsoft Windows Mobile Operating System as an object code package for ARM9-based processors including TI's OMAP(TM) platform and Intel XScale. Subsequent platforms will be available shortly. Commercial licensing for SRS Mobile HD is available directly from SRS Labs. SRS Mobile HD is compatible with all stereo and surround audio formats including SRS Circle Surround, Windows Media, Dolby Digital, Dolby Pro Logic, MP3 Surround, and HE AAC.

Sling Media Quote -

"Sling Media is all about delivering the living room TV experience on PCs and mobile phones anywhere our users happen to be anywhere in the world," said Bhupen Shah, COO and vice president of engineering at Sling Media, Inc. "The combination of SlingPlayer Mobile, now available for Windows Mobile handhelds and smartphones, with SRS Mobile HD will make the true mobile TV experience even better."

TI Quote -

"The promise of mobile TV standards, such as DVB-H, is to deliver a living room TV experience in the palm of your hand," said Avner Goren, Marketing Director of Texas Instruments Cellular Systems Business. "While expected video quality has become a reality, the overall experience can only be fully realized with the preservation and rendering of the program's surround sound track. SRS Mobile HD delivers an easy-to-implement, efficient and great-sounding personal surround sound solution."

About SRS Labs, Inc.

SRS Labs develops advanced audio and communications technology that optimizes and improves the listening experience through techniques based on the latest research into the human auditory system. With over 600 million products shipped worldwide, SRS Labs is a leader in audio. Incorporated in products ranging from HDTVs and mobile phones to PCs and automotive entertainment, SRS Labs audio and speech signal processing provides the best possible sound on every form factor and in every environment. SRS Labs surround sound solutions enable the professional broadcast and recording industries with high-performance production, back-haul, storage, and transmission capability. SRS Labs supports manufacturers worldwide with offices in the US, China, Japan, and Korea.

Except for historical information contained in this release, statements in this release, including those by Mr. Frerichs, may constitute forward-looking statements regarding our assumptions, projections, expectations, targets, intentions or beliefs about future events 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 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.