SRS Labís Circle Surround Technology Launched Into European Television Market With New Licensee, Loewe

SRS Labs, Inc. (Nasdaq: SRSL), the world's leading provider of innovative audio and voice technologies to over 170 of the world's leading manufacturers, today announced that it has successfully launched its surround sound technology, Circle Surround, into the European television market through a new licensing agreement with Loewe OPTA GmbH, one of the leading European manufacturers of large-size televisions.Renowned for its innovations and implementations of advanced technologies, Loewe has chosen SRS Labs' Circle Surround technology as the featured audio upgrade option for its top of the line television chassis models, Credo, Aconda and Xelos, which will begin shipping in the European marketplace during the fourth quarter of 1999.""We are very pleased with the performance of SRS Labs' Circle Surround technology,"" stated Timo Hoefer, Product Manager of Loewe OPTA GmbH. ""The technology has made a marketable improvement in the sound performance of our popular Aconda, Credo and Xelos sets, and we're looking forward to the positive response this will generate in the marketplace. Consumers continue to look to Loewe for product innovations and we have chosen SRS Labs as a technology partner confident their audio technologies, such as Circle Surround, meet the market's expectations for top advances from our company.""""We are very proud that Loewe has chosen SRS Labs as a technology partner and we welcome them enthusiastically to our customer base,"" stated Lenka Koloma-Schaeffer, European sales manager for SRS Labs, Inc. ""They are an ideal first partner for Circle Surround in the European television market as their name is well-known for high quality and leading-edge technology.""Ms. Schaeffer concluded, ""The European marketplace is also a natural fit for our Circle Surround technology as the standard broadcast audio format for the region is Nicam stereo, which is only two channels. Since Circle Surround takes two-channel broadcast material and creates 5.1 channels of surround sound, it is the ideal audio enhancement standard for Nicam. This new licensing agreement with Loewe follows the recent launch by Kenwood Europe of their new C-V751 Home Theater System with Circle Surround and we look forward to future endorsements of Circle Surround as we continue to position it as the audio format of choice in Europe, a key region for our licensing business.""Introduced by SRS Labs in January 1999, Circle Surround is a patented multichannel encoding/decoding technology that adds new realism and life to consumer electronic audio, whether it's a 5.1 home theatre system, car audio system, or professional sound system. Circle Surround encodes an audio program's five discrete channels into two channels (the same space required for stereo), and then decodes the two channels back into five for playback over a system equipped for multichannel playback. In addition to the five channels for surround sound playback, there is also a low frequency output for the operation of a subwoofer. The Circle Surround decoder is capable of presenting full bandwidth information to the front and rear surrounds, without requiring any compression of the signal. As a result, playback of music and movies is at a level of realism and quality unavailable from any other surround sound format.A unique aspect of the Circle Surround technology that makes it a compelling choice for manufacturers worldwide is that it takes traditional stereo input signals and produces 5 channels of surround sound. This is an important feature for the home theatre market in which a significant portion of program material is stereo or Dolby surround encoded, which is also two channel. With Circle Surround, listeners use all 5.1 speakers of their home theater set-up and can enjoy the powerful sound experience of cinema quality sound when playing their legacy media, such as CDs, cassette tapes, FM radio and television and VHS movies.About SRS Labs, Inc.SRS Labs is a leading provider of audio and voice enhancement technology solutions. SRS Labs' business consists of licensing audio and voice enhancement technologies to manufacturers of consumer electronics, computer, gaming and telecommunications equipment; and the design, manufacture and distribution of components, integrated circuits, sub-assemblies and finished products for the consumer electronics and home entertainment markets. For more information on SRS Labs' technologies, the company's worldwide licensing program or its design and manufacturing capabilities, visit the SRS Labs Web site at http://www.srslabs.com or contact SRS Labs at 949 442 1070.