SRS Labs Partners with World's Leading Codec Vendors and PC OEMs to Optimize the Microsoft Windows Vista Entertainment Experience.

SRS Labs and Microsoft Also Extend License Agreement to Feature SRS WOW[R] in the Windows Media Player for Microsoft's Vista Operating System 

SANTA ANA, Calif. -- SRS Labs Inc. (NASDAQ:SRSL), a leading provider of surround sound, audio and voice technologies, today announced solution support availability for the Window's Vista operating system through partnerships with leading PC audio codec vendors and original equipment manufacturers (OEMs). SRS-enabled Vista PC audio codec solutions are now available through Analog Devices, Conexant, IDT (Integrated Device Technologies) and Realtek. The first PC OEMs to ship SRS-enabled Microsoft Vista OS PCs are Toshiba, LG and Samsung, each of whom will display these products at the 2007 Consumer Electronics Show, Jan. 8-11th in Central Hall: Toshiba (#12832), LG (#8214) and Samsung (#11003).

SRS Labs also announces that it has extended its license agreement with Microsoft to include its SRS WOW[R] audio enhancement technology for the Vista OS starting with the Windows Media Player version 11. The agreement, which was originally executed in 2000, has been extended through 2012. SRS WOW, also featured in tens of millions of televisions, MP3 players, and accessories worldwide, improves dynamic audio performance by creating an expansive three dimensional sound field with improved bass. The agreement between SRS Labs and Microsoft will further expose PC consumers to the SRS Labs premium audio experience and continue to build upon SRS Labs' brand recognition.

"The need for high quality audio and video is growing as more and more consumers use their PC as a main source of entertainment. Microsoft has worked with SRS Labs to further improve the consumer audio experience with Windows Vista," said Justin Hutchinson, product manager for Windows Client at Microsoft Corp. "With SRS audio technology incorporated in Windows Media Player, we are demonstrating our commitment to customers' digital home entertainment lifestyle."

Windows Vista brings a new level of personal computing to consumers. It's all about helping make people's lives easier, more entertaining and better connected, as well as safer and more reliable. Microsoft's vision of the digital home features the Vista PC as an entertainment hub that organizes media and controls playback on networked media devices.

In preparation for the biggest operating system release in years, SRS Labs has been working closely with the world's leading PC audio codec providers. These industry leaders comprise approximately 76% of the PC audio codec market worldwide. SRS Labs partnered with these vendors to develop, integrate and certify SRS audio IP for Microsoft's Vista Premium logo program for immediate availability to PC OEMs. "SRS Labs has a long term and strategic partnership with Realtek Semiconductor Corp and by working together, we have successfully delivered SRS-branded surround audio solutions to our Windows XP PC customers," said Robert Wang, planning manager, Realtek Semiconductor Corporation. "For upcoming Windows Vista, Realtek is committed to delivering a variety of SRS audio solutions to our customers." Sandra Perry, product line manager, PC audio codecs, Analog Devices adds, "With SRS solutions for Vista, we can now offer our customers audio quality tuning and customization features along with the ability to enable virtual surround sound, extending the home theater experience to the PC." Kevin Kilbane, senior product marketing manager, IDT, states, "Our relationship with SRS Labs, coupled with our innovative multiple APO structure for Vista, enable our customers to provide the best Vista audio experience possible."

LG will launch more than 10 notebook PC models featuring SRS WOW HD[TM] and SRS TruSurround XT[R]. "SRS delivers big sound to our new Microsoft Vista Premium notebook computers," said SK Yoo, Marketing Manager, LG. Likewise, Samsung's Q1 UMPC model will feature SRS WOW HD 3D stereo and bass enhancement technology along with SRS TruSurround XT surround sound virtualizer. And Toshiba, an SRS-licensee for notebook PCs, is launching new SRS-enabled Vista OS notebooks at CES as well. The new Vista OS SRS-enabled notebooks from each of SRS' licensees will begin shipping in January 2007.

"Windows Vista is designed to fit consumers' digital lifestyles and to deliver a high quality and entertaining experience to the PC," said Thomas C.K. Yuen, chairman and CEO, SRS Labs. "SRS Labs' audio technology is the perfect complement for Vista-based music and video because our audio technologies enrich and enhance the home entertainment experience on personal computers."

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, Europe, Japan, Korea and Taiwan.

Except for historical information contained in this release, statements in this release, including those by Mr. Yuen 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.