-SRS WOW HD library available to improve the sound quality of music and video applications for Alchemy-Based Microsoft WinCE OS devices -SRS licensee, Digital Cube, first to commercially use WOW HD on the Alchemy Processor

SANTA ANA, Calif. and LAS VEGAS, NV., Jan 8, 2008 - SRS Labs, Inc. (NASDAQ: SRSL), a leading provider of surround sound, audio enhancement and voice technologies, announced today that that SRS WOW HD audio enhancement technology is now available for the RMI Alchemy™ family of multimedia applications processors. The new solution is applicable for WinCE -based multimedia devices supporting music and video, GPS -based navigation, digital photo frames or MobileTV.

"We are pleased to unveil this industry -leading audio enhancement suite for digital music to our Alchemy customers," said Mike Wodopian, RMI® vice president and general manager, Alchemy Solutions at RMI. "We will demonstrate the big sound enabled by WOW HD at CES 2008 in our meeting suite (#6030MP) using Digital Cube's new U43 DMB device to show customers how quickly and easily they can deliver advanced audio enhancement to their existing products."

The SRS WOW HD solution, supports speaker or headphone modes provides psychoacoustic bass enhancement and includes the new "Definition Control" feature to ensure clarity of high frequencies over small speaker(s) or earbuds. WOW HD also includes a special single speaker mode for devices such as PNDs or digital photo frames with a mono speaker to improve the shape and quality of the sound image.

"This new solution for the PMD/PND* market shows the breadth and depth of our industry relationships," said Joanna Skrdlant, senior director, global business development and product management for SRS Labs. "The WOW HD solution was enabled initially through our relationship with MIPS Technologies, a leading embedded processor (they don't do DSP's, only microprocessor cores) core provider, and then migrated to Alchemy through our relationship with RMI so we could offer WOW HD to key PMP/PND/DMB makers, specifically in Korea and Taiwan. We are pleased to welcome Digital Cube as the first licensee and look forward to promoting and demonstrating the new solution at CES with RMI."

SRS WOW HD sound enhancement technology improves audio performance, especially from highly compressed audio files, by expanding the size of the perceived sound image and creating a deep, rich bass response. WOW HD not only delivers a bigger, wider sound field, but also provides greater definition and clarity to high frequencies. SRS WOW HD restores information that is lost by traditional recording and playback techniques, creating a more natural and realistic audio experience with overall improved fidelity. To date, SRS audio technologies have shipped in over one billion consumer electronics products ranging from flat panel TVs, Bluetooth accessories and mobile phones to PCs, portable media devices and automotive entertainment systems.

"We selected RMI for our new U43 to deliver the flexibility and key processing features we needed for the U43," said said Richard K. Sohn, CEO of Digital Cube. "The Alchemy Processor allowed us to develop a single design that can be shipped as multiple products including PMP, PND and DMB devices. And we chose to implement SRS WOW HD because of its demonstrable improvement to the sound quality and bass performance of the consumer music and video experience. We worked closely with SRS Labs to custom tune the technology to ensure the best possible audio experience." For more information about the U43 and other products visit

RMI's Alchemy Solutions include the Au1200 Processor Family and the Au1550 Processor Family to meet the needs of consumer and communications applications by offering a high -performance, low -power processor capable of delivering a rich multi -media experience to end users under a half watt (<500 mW). The Au1200 Processor Family consists of the Au1200, the Au1210 and the Au1250, media processors targeted for full -featured Portable Media Players (PMP), Personal Navigation Devices (PND) and MobileTV. The Au1550 Processor offers network processing capabilities with a versatile high -performance, low -power, highly integrated network System -on -a -Chip (SoC) designed for wired and wireless applications The Alchemy product line gives system designers an easy -to -use, simple solution to create full -featured consumer and communications solutions with greatly reduced design cycle times. Visit www.rmi for more information.

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

* PMD/PND - portable media device / personal navigation device

Except for historical information contained in this release, statements in this release, including those by Mrs. Joanna Skrdlant, 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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