October 28, 2008

SRS Premium Sound Delivers Remarkable Entertainment Experience on New HP Notebooks

SANTA ANA, Calif., Oct. 28 /PRNewswire-FirstCall/ -- SRS Labs , the industry leader in surround sound, audio, and voice technologies, announced today that they have entered into a strategic partnership with HP, the industry's number one PC supplier, to incorporate the SRS Premium Sound(TM) suite of advanced audio solutions into HP notebook PCs. SRS Premium Sound delivers a superior audio experience for music and video content on PCs.

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Using advanced patented technologies, SRS Premium Sound creates an immersive, high-quality audio experience for all PC applications related to music, movies and games. This state-of-the-art solution provides a remarkable surround sound experience with deep, rich bass, and crystal clear dialog. It also delivers high-frequency definition for crisp detail in any listening environment, ensuring users a premium and natural entertainment experience across any speaker configuration - laptop speakers, desktop speakers or headphones.

Based on a recent industry research*, the growing PC market worldwide has been shifting noticeably towards notebooks with an expected growth rate of 20% in 2009 and a compound annual growth rate of 15% (from 2008 to 2012). The inherent limitations in notebook form factor and design requirements in relation to smaller speaker drivers and space constraints continue to pose significant challenges that need to be overcome to deliver a compelling entertainment experience. Working closely to optimize the audio performance of HP's new, entertainment-focused Pavilion notebooks, SRS has been able to leverage its extensive audio expertise and know-how to allow HP to focus on the design and development of stylish, high-performance notebooks that deliver a remarkable, premium audio experience to their customers.

SRS Premium Sound features an intuitive user-friendly interface with multiple presets. These presets are precisely modeled to correspond to the principles of psychoacoustics in relation to how the human ear perceives and hears sounds, resulting in natural and expansive surround sound from either headphones or speakers. Furthermore, Premium Sound dynamically brings out subtle nuances and rich sounds buried in the original recorded or streamed multimedia content, delivering it in a way that is superior to stereo or conventional surround sound.

"At SRS, we've closely watched the transition of the laptop from a working tool to a versatile entertainment device, and we've developed SRS Premium Sound to specifically address this trend" said Allen H. Gharapetian, vice president of marketing. "With 73% of PC users listening to music or watching movies on their PCs**, audio performance and quality of sound is indeed becoming a very important factor in buying decisions. We are very excited about joining forces with HP to assure that HP notebooks are delivering a truly superior audio experience."

To commemorate the launch of SRS Premium Sound, SRS and HP are giving away three HP notebook computers featuring SRS Premium Sound. To enter the sweepstakes, visit http://www.srslabs.com/premiumsound, to learn more about SRS Premium Sound, listen to audio demos and download an informative PC Buyer's Guide. The sweepstakes starts at noon on October 28 and runs through December 01, 2008.

The first HP notebook series featuring SRS Premium Sound is the Pavilion dv3500 Entertainment Notebook PC series. For availability or more information, visit http://www.hp.com/

   * 2008 IDC Worldwide PC 2008-2012 Forecast   ** 2007 Consumer Electronics Association report (Computer-Sourced Audio      Consumption in the Home)    About SRS Labs, Inc.  

Founded in 1993, SRS Labs is the industry leader in audio signal processing for consumer electronics. Beginning with the audio technologies originally developed at Hughes Aircraft, SRS Labs holds over 150 worldwide patents and is recognized by the industry as the foremost authority in research and application of human auditory principals. Through partnerships with leading global CE companies, semiconductor manufacturers and software partners, SRS audio, surround sound and voice processing technologies have been included in over one billion electronic products sold worldwide including HDTVs, mobile phones, portable media devices, PCs and automotive entertainment. In fact, SRS Labs is the de-facto standard of HDTV audio processing with nine of the top ten name brand flat panel TVs featuring SRS technology. Additionally, SRS Labs surround sound solutions provide 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. For more information, visit http://www.srslabs.com/.

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

   SRS Labs, Inc. Contact:               Press Contact:   Cyndee Pelino, Sr. Marketing Manager  Chuck Back, Noyd Communications Inc.   949-442-5518                          310-614-2358   [email protected]                   [email protected]    Investor Relations Contact:   Matt Glover, Liolios Group, Inc.   949-574-3860   [email protected]  

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SRS Labs

CONTACT: Cyndee Pelino, Sr. Marketing Manager of SRS Labs, Inc.,+1-949-442-5518, [email protected]; Matt Glover of Liolios Group, Inc.,+1-949-574-3860, [email protected]; or Chuck Back of Noyd Communications Inc.,+1-310-614-2358, [email protected]

Web site: http://www.srslabs.com/