SRS Labs Announces Patent Protection of SRS WOW® Now Covers United States, Europe and China; With Newly Granted US and Chinese Patents, SRS Labs Customers Now Enjoy Broad Patent Protection for Popular 3D Audio Enhancement Technique

Business Wire, August 2, 2006

SANTA ANA, Calif. -- SRS Labs Inc. (NASDAQ:SRSL), a leading provider of surround sound, audio and voice technologies, was recently awarded U.S. Patent 7,031,474, entitled "Acoustic correction apparatus," to cover its award-winning SRS WOW(R) audio enhancement technology. Specifically, the patent covers methods of acoustic compensation for spatial and spectral distortion by way of an apparatus that processes left and right input signals as reproduced through sound system loudspeakers. The patents covering SRS WOW were issued in the U.S. on April 18, 2006 and in China on April 26, 2006.

"These patents have helped secure global recognition of the significant audio contributions that our SRS WOW technology provides to consumer electronics manufacturers around the world," said Alan Kraemer, chief technology officer of SRS Labs. "As an IP licensing business, it is critical that SRS Labs protect and enforce our technology rights. SRS WOW is currently used in millions of electronic devices and provides an unparalleled degree of audio clarity and realistic sound to consumers everywhere."

Since its introduction, SRS WOW has been widely licensed by manufacturers and shipped in millions of consumer electronics products around the world. SRS WOW has been a standard audio enhancement feature in every Windows(R) Media Player download since the release of version 7 in 2000, and has also won several prestigious awards and accolades, such as the Macworld Editors Choice and CES Innovations awards, as well as top ratings from such recognizable names as ZDNet and MP3.com.

About SRS WOW

SRS WOW improves the dynamic audio performance of compressed and uncompressed mono and stereo audio by expanding the size of the audio image and creating a deep, rich bass response. The patented techniques in SRS WOW widen the horizontal sound field and raise the vertical sound image, retrieving information lost in the mixing process to create a more natural audio experience. SRS WOW also shapes a maximized bass response using sculpted filters and driver physics to go beyond the low-frequency limitations of speakers and headphones. The combination enables manufacturers of consumer products with physical space restraints, such as televisions, mobile phones and digital audio players, to leverage cost-effective components for a high-quality consumer experience.

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. Kraemer 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.