SRSÆ Labs Subsidiary SRSWOWcast.com, Inc. Refines Business Direction To The Licensing Of Audio And Voice Enhancement Technology Solutions For Internet Streaming And Wireless Voice Applications

Company Ceases Production Of Original Internet Entertainment Content

27-Feb-01

SRSWOWcast.com, Inc., the wholly-owned subsidiary of SRSÆ Labs, Inc. (NASDAQ: SRSL), a leading provider of audio and voice technology solutions, announced that it has refined its primary business direction to the licensing of audio and voice enhancement technology solutions for Internet streaming, 3G wireless, voice over IP (VoIP) and telephony applications. SRSWOWcast.com, Inc. has halted production of original Internet programming, thus significantly reducing operating costs and will shortly unveil a new company name that reflects this concentrated focus on technology.SRSWOWcast.com is leveraging the patented audio enhancement technology offerings from SRS Labs to dramatically increase the sound quality of traditional stereo music and video and provide the Internet's first versatile, multichannel surround sound technology, Circle SurroundÆ. The company's voice technologies, VIPÆ and WOW Voiceô, improve communications and voice broadcasts by improving clarity and the quality of the voice signal. Some of the targeted applications for the technologies include encoded material on demand, live events transmitted over the Internet or wireless devices, continuous Web simulcasts such as 24/7 radio stations, streaming from online news and entertainment portals, and voice over IP.""SRSWOWcast.com, Inc. has returned to its roots,"" stated Tom Yuen, Chairman and CEO of parent company SRS Labs, Inc. ""Our strength and heritage is the design and license of audio and voice technologies and our goal is to become the supplier of these technology tools to the Internet and wireless markets. While the delivery of music and entertainment programs via the Internet and wireless devices has created new distribution channels for content providers, current bandwidth and compression formats result in poor audio and voice playback quality. Companies have come to us for solutions to this audio challenge and we have made great strides over the last few months in meeting their needs. We have completed development of customizable and scalable solutions for the audio enhancement of streaming media over the Internet in mono, stereo and surround sound formats. We have also effectively demonstrated server-based solutions of our voice technologies for the wireless 3G format. Our Web site will now be used to demonstrate these technology solutions, support the branding of SRS technology and promote our SRS technology partners.""Since late 1999 when SRSWOWcast.com was formed, its business direction included production of original entertainment content as well as the branding of the site as an entertainment portal. Rather than pursue a consumer-focused business model for developing original entertainment content, the company has now made a strategic decision to cease the costly content production side of its business and focus on more profitable business segments.Mr. Yuen continued, ""Our refined business direction has also resulted in greatly reduced operating expenses and a dramatically reduced the cash burn rate which should facilitate reaching profitability earlier than previously expected. We are now concentrating all of our resources on technology sales and development, which we believe is the area of their business with the highest possible return on investment.""SRSWOWcast.com, Inc. will continue to leverage the significant daily traffic that the srswowcast.com website receives through the relationship with Microsoft. SRS WOWô technology is featured on the Microsoft WindowsÆ Media Player 7 which also includes a hyperlink to the Web site. While the company has ceased to produce original programming for the Internet, the site will continue to feature a variety of readily available content that will be used to showcase the company's audio and voice enhancement technologies, such as movie trailers, music videos and Competitively Incorrectô with Jim Lampley, a radio talk program streamed from the Web site using the company's voice technology, VIP. Additionally, the site will promote and sell consumer electronics products, including televisions, DVD players, headphone products and home audio equipment from the family of SRS hardware licensees, such as Sony, Philips, Pioneer, Sennheiser and RCA.In addition, the company announced that SRSWOWcast.com, Inc. President Charles Cortright, resigned for personal reasons; however, he will continue to serve as a consultant.For more information about SRS Labs, Inc., visit www.srslabs.com.

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