Yokohama FM Begins Broadcasting With SRS Circle Surround(R)

Yokohama FM Begins Broadcasting With SRS Circle Surround(R)

SRS Labs' Circle Surround Technology Popularity Growing Amongst Japanese Radio Stations

SANTA ANA, Calif., April 7 /PRNewswire-FirstCall/ -- SRS Labs, Inc. (NASDAQ:SRSL), one of the world's leading providers of audio, voice and surround sound technologies, announced today that Yokohama FM Broadcast Co., Ltd., a major radio station in the heart of Yokohama, Japan, has adopted SRS Circle Surround(R) 5.1 ("CS") as their surround sound technology for radio broadcasts. Yokohama FM began broadcasting their station identification jingle in CS on April 4 and is planning to broadcast live concerts, in CS, in May 2005. SRS Circle Surround is an advanced encode/decode system that allows professional audio engineers to encode up to 6.1 channels of discrete audio for distribution or broadcast over existing two-channel carriers such as SD and HD television, analog and digital radio, streaming media, CDs and VHS tapes.

CS encoding is backward compatible with all playback systems, including mono and stereo formats. Listeners of the Yokohama FM's broadcasts who have a Circle Surround or other matrix surround decoder installed, will hear a stunning 5.1 surround sound experience, while those listening over regular two-speaker stereo systems will hear the broadcast in enhanced stereo. One of the most powerful branding opportunities for CS is that Yokohama FM will be announcing to their audiences that the station content will be broadcast in CS, and will be explaining to their listeners the benefits of receiving the radio stations content in full and dynamic 5.1 surround sound.

"Our various experiments have proved that Circle Surround has a high level of compatibility with FM broadcasting," said Mr. Koichiro Yanagi, manager of engineering department, FM Yokohama Broadcast Co., Ltd. "With such a powerful encoding system, we look forward to producing future programs in Circle Surround and giving our listeners the ability to enjoy 5.1-channel surround sound."

SRS Labs' regional manager for Japan, Hank Kato says, "Yokohama FM's use of our technologies is an important testament to the value of the SRS brand, and the power of Circle Surround to help broadcasters deliver superior surround sound that exceeds their audience's expectations. It is clear that Yokohama FM has very high standards and is dedicated to delivering only the best audio experience to their listening audience and we look forward to continuing to work with them on these exciting surround broadcasts."

Circle Surround is quickly becoming a broadcast standard for multichannel surround sound delivered over the standard two-channel radio and television broadcasting systems used in overseas markets. Key users include Guangdong Pearl Radio Station in the People's Republic of China, Tokyo FM radio in Tokyo Japan and television broadcasters Mainichi Broadcasting System Inc, (or MBS) and GAORA in Japan. Yokohama FM joins this list of surround broadcasters and gains a competitive advantage in their marketplace by being able to offer surround sound to their listeners.

Radio stations that use CS can broadcast one CS-encoded radio signal that satisfies all possible audience playback environments, because it is backward compatible to all mono and stereo formats. However, for the ultimate experience in surround sound playback, it is recommended that audio enthusiasts use a surround sound receiver that includes Circle Surround II decoding, available from manufacturers such as Marantz, Accuphase, Pioneer, Theta Digital, Motorola and Kenwood.

To date, over 500 million television viewers have experienced Circle Surround, and over 300,000 DVDs and CDs have been distributed that include CS. The technology continues to be a popular choice for broadcasters and professional audio mixers in the United States due to its flexibility, ease-of-use, and overall audio performance. Top television broadcasters in the United States and abroad, who have transmitted Circle Surround-encoded programs include ABC, CBS, NBC, ESPN, ESPN 2, ESPN HD, FOX, FX, TNT, PBS for dozens of programs including the 55th Annual Prime Time Emmy Awards, X Games, NFL and NBA broadcasts, and more.

About Circle Surround(R) Decoding

Circle Surround decoding is included in hardware and software products to deliver up to 6.1 channels of audio from any mono, stereo, matrix-encoded, or Circle Surround-encoded material. To date, Circle Surround decoding has been incorporated by leading home theater, PC and automotive manufacturers, including: Marantz, Accuphase, Pioneer, Theta Digital, Motorola, Kenwood, M-Audio, Orion Studios, Smart Devices, Eclipse, Honda, Johnson Controls, Kenwood, Panasonic, Toyota, Yamaha and Volkswagen. A wide range of analog and digital implementation options for CS and CS II are available from the SRS Labs' family of platform partners including AKM, Analog Devices, ASP Microelectronics, Cirrus Logic, Philips Semiconductor, ST Microelectronics and Texas Instruments.

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 Yokohama's continued usage of Circle Surround for future broadcasts, 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.

Investor Contact: Media Contact: Tami Yanito Jennifer Drescher (949) 442-1070 ext. 3093 (949) 442-1070 ext. 5010 tami@srslabs.comjenniferd@srslabs.com

Source: SRS Labs, Inc.

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

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

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