SANTA ANA, CA, October 30, 2008 -- SRS Labs (NASDAQ:SRSL), the industry leader in surround sound, audio, and voice technologies, this week detailed insights into the emerging trends in the notebook computer market and announced SRS Premium Sound™, a remarkably customizable audio solution that overcomes the inherent sound limitations in computers’ internal speakers and provides a superior entertainment experience for external speakers and headphones. 

Consumers are rapidly embracing their portable PCs as mobile entertainment devices, driving record growth in the notebook computer market segment.  In response to consumers’ desire for more stylish, more versatile notebooks that provide a superior audio experience and with direct input from consumers and OEMs, SRS developed the SRS Premium Sound suite. The technology suite is now rapidly becoming the preferred audio solution deployed by leading PC OEMs worldwide.

How consumers are utilizing their PCs is evolving.  Gone are the days when the PCs main function was spreadsheets and text documents.  The PC is now a primary source of entertainment.  A recent Consumer Electronics Association (CEA) study* found that 73% of adults online use their PCs for audio playback of music, streaming content, or movies. 

Not only is the PC now the center of the users’ digital entertainment universe, but it also is no longer a stationary device relegated to remain on users’ desks.  The consumer trend is moving towards greater mobility, taking your content with

you on-the-go.  A 2008 IDC report** forecasts that 2009 notebook computer sales will grow 20%, compared to only a 3% growth rate in desktop computer sales.  The forecasted six year compounded average growth rate is 17% for notebooks versus3% for desktops.

The growing demand for greater mobility and more stylish notebook designs can have a negative impact on the overall entertainment experience.  As notebook form factors become thinner, offering high quality audio becomes more difficult to achieve, as evidenced by a recent CEA study* that found nearly half of notebook users were dissatisfied with their audio listening experience. “The desire for a compact form often takes precedence over speaker size and optimal speaker placement in order to accommodate the need for portability,” said Allen H. Gharapetian, SRS vice president of marketing. “Our SRS Premium Sound suite was developed specifically to boost the mobile entertainment experience and overcome the inherent audio shortcomings in PCs.” 

Uniquely designed for the PC environment, SRS Premium Sound features a comprehensive suite of advanced patented audio technologies not previously available in an all-inclusive technology suite.

Complete with immersive surround sound, deep bass, high-frequency definition, crystal clear dialog, and, specifically for notebook speakers, an overall boosting of sound volume, Premium Sound seamlessly overcomes the inherent sound limitations in computer speakers and provides a remarkably rich and natural entertainment experience across any internal or external speaker configuration, including headphones while bringing out subtle nuances buried in recorded or streamed multimedia content.

Through its unique consultative approach, SRS actively pursues opportunities to develop strong strategic partnerships with OEMs by working closely with manufacturers throughout the product development process, providing solutions that are fine-tuned for individual products.  SRS’ patented audio solutions not only overcome the limitations of notebook speakers and the acoustic constraints of notebook casings, but also deliver the best possible audio even when processing resources are limited.  

Armed with these additional, cutting-edge resources, PC manufacturers can create stylish form factors, while also providing superior audio experiences to their customers.  Better sound quality is a strong differentiator at retail and helps assure post-purchase satisfaction as users experience an immediate “out-of-box” satisfaction with their PC’s audio playback.

Currently, SRS Premium Sound is being implemented into new products from PC market leaders that include HP and NEC, with other announcements to follow soon. SRS Premium Sound is currently available on Realtec and IDT audio codecs, facilitating its adaptation into any PC.

To educate PC shoppers, SRS Labs has created an informative microsite which showcases the SRS Premium Sound technology, highlights new notebooks with superior audio for mobile entertainment, and educates consumers with a unique PC Buying Guide.  The “Entertainment PC Buyer’s Guide”, authored by Alan Kraemer, CTO of SRS Labs, is a comprehensive, objective presentation of the information and considerations that consumers need to take into account when selecting a new PC for use as an entertainment device along with its other capabilities. 

To commemorate the launch of SRS Premium Sound, SRS is giving away three notebook computers featuring the technology.  To enter the sweepstakes and download the Entertainment PC Buyer’s Guide, visit www.srslabs.com/premiumsound.

*2007 Consumer Electronics Association report (Computer-Sourced Audio Consumption in the Home)
**IDC Worldwide PC 2008-2012 Forecast

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 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.

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