SANTA ANA, CA, October 29, 2008 -- SRS Labs (NASDAQ:SRSL), the industry leader in surround sound, audio, and voice technologies, announced today an agreement with BenQ, a leading provider of networked digital lifestyle devices, to incorporate SRS’ advanced surround sound audio solutions into 3 models of their new series of Joybook notebook PCs and upcoming new models in 2009.

BenQ selected to incorporate SRS audio solutions into their new line of notebooks to deliver an immersive, natural surround sound performance with deep, rich bass, crystal clear dialog and maximum definition of high frequencies.  BenQ’s desire to ensure a premium, natural entertainment experience for their customers across the entire Joybook product line meant that audio performance had to be consistently superior, independent of different speaker configurations and headphone types. In accordance to that objective, Joybook S33 and Joybook S42 notebook PCs incorporate SRS TruSurround XT® while the larger Joybook P53, with its enhanced performance capabilities, features SRS’ industry-leading TruSurround HD™ in combination with SRS Headphone 360™. Whether over the notebook speakers, external speaker or headphones, the result is awe-inspiring surround sound audio.

“Through their hands-on involvement throughout our development process, SRS demonstrated a unique, in-depth understanding of how to tune and optimize their advanced sound solutions to deliver excellent audio performance for our exciting new line of Joybook,” said Peter Chen, GM of BenQ Technology Product Center.  “Our customers expect us to combine exquisite design with advanced technology to deliver great performance, practicality and ultimate portability. Given that, we are convinced that, thanks to SRS’ state-of-the-art audio solutions, there will be no compromises in terms of audio output, guaranteeing our customers a seamless and superior multimedia experience.”

Gone are the days when the PC’s main function was spreadsheets and text documents.  In fact, users have embraced PCs as great entertainment sources, as evidenced in a 2007 Consumer Electronics Association (CEA) study that found 73% of adults online use their PCs for audio playback of music, streaming content, or movies.  Yet, in the rapidly growing market of notebooks, the manufacturers are facing significant challenges to deliver high quality audio on these popular devices due to their slimmer, shrinking form factors.  As a result, leading PC manufacturers like BenQ understand the customer benefit of incorporating SRS’ advanced audio solutions into their notebook products to effectively eliminate the need to sacrifice audio performance in exchange for mobility and style.  

“We are excited to be partnering with BenQ in launching their superb new Joybook notebooks,” said Craig Marking, director of product marketing for SRS Labs. “Even with these highly mobile designs, BenQ’s stylish Joybook notebooks deliver powerful audio performance and are surely going to be very popular with consumers who expect audio performance to keep up with cutting edge design and portability”

All three Joybook notebooks are available now in Asia-Pacific, China, East Europe.

To commemorate the launch of SRS Premium Sound, SRS is giving away three notebook computers featuring the technology.  To enter the sweepstakes, visit www.srslabs.com/premiumsound, where you can also 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.

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. Marking, 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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