SRS LABS LICENSES TRUSURROUND XT TO CHINESE MANUFACTURER, MTC, FOR 2008 LCD TV PRODUCT LINE

-Shenzhen MTC Co., Ltd (MTC) is a fast moving and innovative Chinese manufacturer of LCD and Plasma monitors and televisions -TruSurround family is the world's number one virtual surround sound technology for flat panel TVs

SANTA ANA, CA and CES - LAS VEGAS, NV - January 9, 2008 - SRS Labs, Inc. (NASDAQ: SRSL), a leading provider of surround sound, audio enhancement and voice processing technologies, announced today that Shenzhen MTC Co., Ltd (MTC), a hi -tech manufacturer based in Shenzhen, China, has chosen SRS Labs as the audio enhancement provider for their sleek and contemporary 2008 product line of LCD televisions.


MTC specializes in the research and development, manufacturing and marketing of a wide range of TFT LCD displays sold exclusively into the Chinese market. SRS Labs' licensing agreement with MTC is for use of TruSurround XT in all 32 inch and up LCD televisions.

SRS TruSurround XT is the world's leading patented virtual surround sound technology. It processes up to 6 channels (5.1) of audio information to deliver an engaging virtual 5.1 surround sound experience over only two speakers. SRS TruSurround XT also utilizes additional proprietary audio enhancement techniques from SRS Labs to optimize bass performance using psychoacoustic principles and improve the intelligibility of dialog from video content. The end result leaves the listener feeling as if they are surrounded by "phantom" speakers, which appear to extend all around them, producing a distinctly immersive surround sound field without the clutter of extra speakers. When receiving mono or stereo content, TruSurround XT processes the audio for a truly expansive three -dimensional sound field, providing the industries largest 'sweet spot'.

MTC chose SRS TruSurround XT because it helps to overcome many of the design challenges inherent with flat panel TVs and because of the rich acoustic depth and surround sound experience it delivers. To accommodate consumer's style preferences, it is necessary for flat panel TV speakers to be made smaller and often located out of sight, both of which make delivering good audio very difficult. The implementation of SRS TruSurround XT allows manufacturers to design sleek, thin LCD designs and still provide a high quality and compelling audio entertainment experience.

"MTC's selection of SRS TruSurround XT is another affirmation of our leadership position in the LCD TV market," said Michael Franzi, VP of Sales for SRS Labs. "They are the newest LCD manufacturer in China to implement SRS technologies, demonstrating the growing acceptance of the SRS brand and the value it offers both manufacturers and consumers. Manufactures appreciate the flexibility, ease of integration and cost savings benefits, while the consumer enjoys the immersive, high quality audio experience."

The world's leading TV manufacturers continue to choose SRS Labs as their audio partner of choice. In 2006, SRS technologies, dominated by SRS TruSurround XT, were found in about 37 percent of the 58 million flat panel TVs that were shipped worldwide, based on royalty reports. Additionally, for the first three quarters of 2007, SRS Labs experienced a 49 percent increase in FPTV units sold featuring SRS IP over the same period in 2006. With global FPTV units predicted to reach 110 million by 2008, according to DisplaySearch, it is clear that this market provides terrific growth opportunity for SRS licensing.

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 37 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
Except for historical information contained in this release, statements in this release, including those by Mr. Franzi, 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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