SRS Labs and Pantech Enter into New Licensing Agreement for Handsets.

Pantech Ships First CDMA Phone to Feature New SRS WOW HD Audio Enhancement Technology

SANTA ANA, Calif. -- SRS Labs, Inc. (NASDAQ:SRSL), a leading provider of surround sound, audio and voice technologies, announced today that it has licensed its SRS WOW HD[TM] audio enhancement technology to Pantech Co., Ltd., the leading Korean handset manufacturer, for use in their handsets. With this initial handset, IM-U130 CDMA phone, Pantech has become the first customer to enable SRS Labs' next-generation 3D stereo enhancement technology for use in a handset. The phone is available immediately on the SK Telecom network in Korea.

The IM-U130 handset is designed as a music jukebox, specifically to emphasize MP3 music playback. SRS WOW HD presents the handset with 3D stereo, improved low frequency bass performance and enhanced high frequency sound clarity, especially on the micro speaker and earphones, ensuring a great music listening experience for users. Pantech enabled the SRS WOW HD feature on a Qualcomm-based CDMA phone through utilization of one of SRS Labs' many platform partners, Korean-based Telechips, who markets SRS WOW HD on their multimedia applications processor, the TTC772.

The new license with Pantech extends SRS Labs' success in the wireless market that includes CDMA and non-CDMA phones from NEC, Samsung, Sharp and others.

"We recognized the need for high quality audio in CDMA handsets," said Steven Kim, regional sales director, SRS Labs, Inc. "The rapid transition of mobile phones from being purely communication devices to mobile entertainment devices has motivated leading handset makers worldwide, such as Pantech, to license our SRS WOW HD technology to provide incredible audio performance for music and video applications on the handsets. This enables wireless subscribers to take full advantage of multimedia services and handset features including ring tones, digital music and streaming video."

SRS WOW HD improves stereo rendering to provide dynamic performance from mono and stereo sources, sculpts bass response for maximum thump, widens the audio field for more natural sound and restores audio clarity lost in the mixing process.

About Pantech Co., Ltd.

Pantech, through its affiliates - Pantech Co., Ltd., Pantech&Curitel Communications, Inc. and Pantech C&I Co. - is one of Korea's top three mobile handset makers and is the seventh largest handset manufacturer in the world. Pantech has been responsible for a number of breakthrough innovations in the mobile technology sector, including the introduction in 2004 of the world's first fingerprint recognition camera phone, as well as award winning camcorder, MP3 and DMB phones. In 2005, Pantech affiliate Pantech&Curitel Communications acquired SK Teletech Co., the handset manufacturing arm of SK Telecom, the number one mobile network operator in South Korea. The SKY brand, originally marketed by SK Teletech as the most popular premium handset brand in South Korea, has since become part of the Pantech brand portfolio. Pantech markets its products under the SKY and Curitel brands in the domestic Korean market and under the Pantech brand overseas. Pantech collectively has approximately 3,500 employees and 21 regional sales offices worldwide. For more information on Pantech, please visit www.pantech.com.

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, Taiwan, Europe and Korea.

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