SANTA ANA, Calif., March 19, 2008 – SRS Labs, Inc. (NASDAQ: SRSL), a leading provider of surround sound, audio and voice technologies, announced today they have formed a new business unit that will specifically focus on providing and developing solutions for STB (Set-Top Box) applications on worldwide basis. This is in a close partnership with leading MSOs (Multiple System Operators) and OEMs (Original Equipment Manufacturers) worldwide and in continued cooperation with the leading IC vendors (NXP, STMicroelectronics, Broadcom, and Conexant) to integrate SRS technologies onto Set-Top Boxes.

“We are excited about SRS Labs’ new STB direction as it greatly complements and further expands our long-term existing relationship," says Philippe Lambinet, Executive Vice President, ST Home Entertainment Business Unit at STMicroelectronics. "SRS’ audio technologies bring unmatched audio quality for Set-Top Boxes from a proven source and brand name that is globally recognized and respected. We are delighted to be one of the very first chip suppliers to offer SRS’ advanced audio technologies on our leading STB platforms marketed to customers worldwide. The strong market leadership, dedication and technological know-how of our two companies guarantees we'll have a significant impact in the market."

Currently, the STB market represents 130 million units and is expected to grow considerably by 2010. “The STB market is continuing to enjoy strong growth," reports iSuppli in an October 2007 report. "OEM revenues and shipments will grow from $15.9 billion and 123.9 million units to $22.1 billion and 190.7 million units.”

“By forming a new business unit, SRS Labs is demonstrating a significant commitment to the STB market segment which echos NXP’s aggressive global STB strategy,” said Christos Lagomichos, Executive Vice President & Home Business Unit Manager at NXP Semiconductors. “With SRS’ superior audio technology and NXP’s leadership in picture quality, consumers will have the rich entertainment experience they’ve always desired, creating a bigger pull in the large volume STB market.  Evidently, SRS’ focus on the STB market delivers promisingly on our long standing partnership.”

Formerly SRS Labs’ Sr. Director of Strategic IC Platforms and Sales, Lenka Koloma heads the newly formed business unit as its managing director. “We are very excited about the opportunities in the STB market and believe that by dedicating resources and focusing on the growing STB market, we will be able to bring significant value to our global partners,” said Lenka Koloma. “It is also very encouraging to be endorsed by the top IC manufacturers and the STB market leaders and we are very proud to have earned ST, NXP, Conexant, and Broadcom’s support. I am certain that SRS’ audio management technologies not only broaden and enrich consumer enjoyment but also address critical audio concerns.”

SRS Labs is participating at this year’s CCBN show from March 21 to March 23 in China. Recognized as the world's largest exhibition for DTV and broadband network industries, CCBN attracts more than 60,000 visitors and features exhibitors dedicated to broadcasting, cable and satellite technologies and equipment.

About SRS Labs, Inc.
SRS Labs is a leader in audio signal processing for consumer electronics.  Founded in 1993, SRS Labs holds 129 worldwide patents, with another 34 pending, for advanced audio, voice and surround sound technologies that optimize and improve the listening experience through techniques based on research into the human auditory system. Through partnerships with leading global manufacturers and semiconductor and software partners, over one billion products have shipped worldwide utilizing SRS audio technologies, primarily from one of three main technology families, SRS WOW®, SRS TruSurround® and SRS Circle Surround®. SRS Labs audio and voice processing provides the best possible sound from all content and in every environment including HDTVs, mobile phones, portable media devices, A/V components, PCs and automotive entertainment. And with 38 percent of the 58 million flat panel televisions shipped in 2006 featuring SRS audio processing, SRS Labs is the de-facto standard of HDTV audio processing.  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.

Press Contact:
Jim Noyd
Noyd Communications Inc.
310-374-8100
jim.noyd@noydcom.com

            Note for press only:
            Photos, additional specifications, information, interview requests and product evaluations should be directed to agency.