SRS Labs Reports Global Adoption Of Audio Technologies By Majority Of Top Flat Panel TV Makers

Patented SRS TruSurround XT and SRS WOW Technologies Continue to Dominate Flat Panel Television Market

June 13, 2007

SRS Labs Inc. (Nasdaq: SRSL), a leading provider of surround sound, audio and voice technologies, today announced its audio technologies were featured in 38 percent of the 58 million 2006 flat panel televisions (FPTVs) sold worldwide. SRS Labs is also pleased to announce that one or more SRS audio technologies are implemented by seven of the top nine FPTV manufacturers. While SRS Labs has multiple audio technologies for set-makers to consider, the two leading SRS audio technologies most often licensed for use in televisions are SRS TruSurround XT(R) virtual surround sound and SRS WOW(R) audio and bass enhancement solutions. The world's leading TV manufacturers identify SRS Labs as their audio partner of choice. Among the top nine FPTV manufacturers reported by DisplaySearch, seven: Samsung; Sony; Sharp; LG; Panasonic; Hitachi; and Pioneer, feature at least one SRS audio technology to provide improved multi-dimensional sound enhancement. Other global television manufacturers featuring SRS audio technologies include, but are not limited to, Polaroid, Prima, Sceptre, Skyworth, Toshiba, Vestel and VIZIO. Moreover, 2006 saw just over 58 million FPTV units ship worldwide (source: DisplaySearch) with over 22 million (38 percent) of those units featuring SRS audio technology, based on royalty revenue reports. According to two years of independent reports conducted by Consumer Reports (2006 and 2007) of nearly 200 LCD, PDP and rear projection TVs, SRS Labs technology implementations dominate the market. SRS technologies were consistently featured in 42 percent of all models tested at Consumer Reports over the past two years, compared to a combined 14 percent of the sets tested containing competitive audio technologies. When rating audio quality, the reports concluded that 44 percent of the models containing SRS IP were awarded the highest rating of "Excellent", compared to a combined total of 31 percent of the models containing competitive audio technologies. "With global FPTV units predicted to reach 110 million by 2010*, it is clear that this market provides terrific growth opportunity for SRS technologies," said Tom Yuen, CEO of SRS Labs, Inc. "The combination of leading edge designs from TV manufacturers and the ability to tune and customize SRS sound technologies enable us to partner with the TV makers to address the multiple audio challenges inherent in thin displays. The results are stylish TVs that deliver a high quality audio experience -- a truly fantastic product." In a research report conducted by MarketTools, consumers ranked "high quality sound" among the most important attributes of a television, just behind picture quality. This is consistent with the fact that the top selling consumer brands continue to feature SRS technologies, widely known for superior overall audio quality, flexibility, ease of integration, and cost savings benefits. SRS TruSurround XT, found to be the strongest SRS brand by MarketTools, is the most widely implemented virtual surround sound technology on the market. It processes multichannel audio content found in television shows and movies to create a virtual surround sound experience over the stereo speakers inside the TV. Consumers feel as if "phantom" speakers are placed around them, producing an amazing surround sound effect, without the clutter, wires, added expense or complexity of a multi-speaker configuration. SRS WOW creates a substantially larger "sweet spot" and retrieves the ambient information of audio that is typically lost during the recording and playback process so consumers experience an immersive sound field with restored clarity. Since its introduction, SRS WOW has shipped worldwide in tens of millions of consumer electronics products, such as flat panel TVs, portable media players, and PCs. Additionally, SRS WOW has been a standard audio enhancement feature in every Windows(R) Media Player since the release of version 7 in the year 2000. In addition to SRS TruSurround XT and SRS WOW, other SRS audio technologies are available for the television market including SRS(R) for 3D stereo enhancement of mono or stereo sources, SRS TruSurround HD(TM) and TruSurround HD4(TM), the next generations in the TruSurround family, for rendering surround sound from speaker output configurations ranging from 2.0 to 3.1 and 4.0 to 5.1, respectively, SRS TruBass(R) for psychoacoustic bass enhancement, and SRS FOCUS(TM) for vertical repositioning of the audio image. SRS Labs has the industry's broadest semiconductor platform coverage for televisions (audio, and video/audio chips), available from Analog Devices, AMD, Broadcom, D2Audio, Cirrus Logic, Genesis, MediaTek, Micronas, MIPS, NJRC, NXP, Sigmatel, ST Microelectronics, Texas Instruments, Toshiba, and many more. "We deliberately choose to work with SRS Labs because their segmented market positioning offers TV makers application-focused and fully immersive audio products," said Gabriel Guglielmi, Home Video Division Business Line Unit Director, ST Microelectronics. "Thanks to their market-proven solutions and their solid audio reputation, they have become de facto the standard for our mutual customers." SRS Labs' audio technologies are featured in flat panel televisions worldwide, including Europe, the Americas, Australia, China, Korea, and Japan.

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