SRS WOW(TM) Audio Enhancement Featured in Latest iRiver Digital Audio Players

SRS WOW(TM) Audio Enhancement Featured in Latest iRiver Digital Audio Players

Patented WOW Technology Continues to Lead the Audio Enhancement Market for Flash-based Digital Music Players with New H10 Model From Market Leader, iRiver

SANTA ANA, Calif., March 8 /PRNewswire-FirstCall/ -- SRS Labs, Inc. (NASDAQ:SRSL), one of the world's leading providers of audio enhancement technology, today announced that its patented WOW(TM) 3D audio technology is now included in the new H10 digital audio players from iRiver, the global leader in Flash-based digital audio devices. SRS WOW has become the world's leading 3D audio enhancement technology solution for portable audio device manufacturers to improve the quality of any audio file played on a digital audio player. The new iRiver H10 model, which was first launched at the Consumer Electronics Show (CES) in January, is available now through online stores, and major retail outlets. The iRiver H10 is quickly capturing attention from consumers, press and the electronics industry. In fact, during his pre-show keynote address at CES 2005, Microsoft Chairman Bill Gates promoted the new iRiver H10 product featuring WOW as part of Microsoft's launch of the new "PlaysForSure" logo program, which ensures compatibility with Windows Media Player 10.

"The inclusion of WOW in the latest digital music players from iRiver is further testament to the fact that SRS Labs technology is quickly becoming a standard among market leaders such as iRiver," said Joanna Skrdlant, director of strategic IC partner development for SRS Labs. "With over 50 percent market share in Korea and a leadership position in the global Flash player market, iRiver's adoption of SRS WOW in a high profile player for the U.S. market is key to our capturing a greater portion of the 24 million unit-a-year global MP3 player market." iRiver is a U.S. subsidiary of Korea's ReignCom, and according to a December 2004 Korea Times article, ReignCom's global MP3 player market share is expected to reach 13.7 percent this year.

SRS WOW is a complete and scaleable suite of 3D audio, bass enhancement and mono and stereo speaker technologies that can be customized by portable audio manufacturers to improve the quality of any audio played on any digital audio player. WOW is becoming a "must have" feature for portable audio players as it solves several of the player's most serious challenges, including the delivery of 3D stereo audio separation and the creation of deep, powerful bass for music played over headphones or earbuds.

To date, over 500 million hardware and software products that include WOW have shipped or been downloaded. The technology continues to be the first choice for manufacturers due to its flexibility, ease of integration, and better overall audio performance. Among the products that currently feature WOW are digital audio players from Dioneer, eDigital, Hyunwon, iBead, iRiver, Olympus, RIO Japan and Samsung; personal computers from Sony and Toshiba; mobile phones from NEC, the number one handset maker in Japan, and Samsung, the number one handset maker in Korea; as well as LCD, plasma and traditional CRT sets from LG, Metz, Onida, Samsung, Sony and Toshiba; and Microsoft's Windows Media Player Series of software products.

About SRS Labs Inc.

SRS Labs is a recognized leader in the advancement of audio and voice technology. The company works with the world's top manufacturers to provide a richer entertainment experience through patented sound techniques. SRS Labs' technologies can be heard through products ranging from televisions, flat panel displays, DVD players, mobile phones, car audio systems, headphones and notebook and desktop computers. The company also offers hardware and software tools to professionals and consumers for the creation, production and broadcast of content featuring SRS Labs' technologies. SRS Labs' wholly owned subsidiary, ValenceTech, is a Hong Kong-based semiconductor company that designs and sells custom ASICs and standard ICs to leading manufacturers worldwide. Based in Santa Ana, Calif., the company also has licensing representation in Hong Kong, Japan, Europe, and Korea. For more information about SRS Labs, Inc. please visit www.srslabs.com. The information on the aforementioned website is not incorporated by reference into this press release.

Except for historical information contained in this release, statements in this release are forward-looking statements and projections (which include statements concerning plans and objectives of management for future operations) 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 ReignCom's ability to capture 13.7 percent market share of the global MP3 player market in 2005, 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.

(C) 2005 SRS Labs. All rights reserved. SRS, SRS 3D Sound, WOW, and the SRS logo are all trademarks of SRS Labs, Inc. All other brand names mentioned are trademarks of their respective holders.

For further information please contact Investors, Tami Yanito, x 3093, tami@srslabs.com, or Media, Jennifer Drescher, x 5010, jenniferd@srslabs.com, both of SRS Labs, Inc., +1-949-442-1070.

Source: SRS Labs, Inc.

CONTACT: Investors, Tami Yanito, x 3093, tami@srslabs.com, or Media, Jennifer Drescher, x 5010, jenniferd@srslabs.com, both of SRS Labs, Inc., +1-949-442-1070

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

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