D2Audio Reference Designs to Offer SRS TruSurround HD/HD4 Solution with Integrated Class-D Amplification For Digital- TV and LoudSpeaker Accessory Markets

Santa Ana, Calif., Jan. 05, 2006 - SRS Labs, Inc. (NASDAQ: SRSL), a leading provider of surround sound, audio and voice technologies and D2Audio Corporation, the developer of the world's only Intelligent Digital Amplifier™ ICs and complete reference designs, announced today that SRS TruSurround HD and HD4 surround technologies for TVs and active loudspeaker products will be available for the first time from D2Audio®. D2Audio is leading the way to deliver a total solution reference design comprised of a programmable Class D, four -channel digital amplifier system and SRS TruSurround HD/HD4 surround sound. The combination makes this solution a very advanced, high quality, cost -effective solution for DTV and loudspeaker array product manufacturers.

At the 2007 Consumer Electronics Show in Las Vegas, January 8 11, 2007, SRS Labs unveiled the new SRS TruSurround HD4™ technology, an advanced mode of the popular TruSurround XT® and TruSurround HD surround virtualization technologies. The new technology takes virtual surround sound to a whole new level by delivering discrete surround channels from loudspeakers located next to the left and right channels - in front of the listener. Through the use of advanced SRS Labs psychoacoustic audio patents, SRS Labs has launched this next -generation surround sound technology to target the fast growing Digital TV market, along with the loudspeaker array and loudspeaker accessory markets.

"SRS Labs' new TruSurround HD and HD4 technologies are a perfect fit for our DAE -1™ solution which features a programmable DSP and four -channel Class -DPWM controller," said Dr. Skip Taylor, CTO D2Audio Corporation. "Beyond this, we are also pleased to offer the SRS -branded leading virtual surround sound technologies to our customers on the D2 -81435 -LR and to be at the forefront of delivering such a unique new technology into the DTV and powered loudspeaker markets."

"SRS is pleased to welcome D2Audio into our platform partner program," said Joanna Skrdlant, senior director, Americas platform partner program, SRS Labs. "D2Audio brings an entire line -up of manufacture -ready, production tested, reference designs based on their Intelligent Digital Amplifier technology, as well as a growing list of high -volume customers who are anxious to differentiate their designs using the latest audio processing technologies, including SRS TruSurround HD4. The DAE -1 is an incredibly flexible, cost -effective single -chip architecture which can deliver virtual surround over 2.0 to 4.1 front -facing loudspeaker systems, eliminating the need for consumers to place loudspeakers behind them to enjoy today's surround -enabled programming."

About SRS TruSurround HD and TruSurround HD4
TruSurround HD™ is a robust multichannel virtualization technology which accepts input from up to a 7 channel (6.1) audio source and renders surround sound from front facing output loudspeaker configurations ranging from 2.0 to 3.1. When receiving multichannel content, TruSurround HD virtualizes the channels, creating "phantom" loudspeakers that appear to extend all around the listener, producing an amazing surround sound effect. When receiving mono or stereo content, TruSurround HD creates an expansive three dimensional sound field, provides added definition to high frequencies and offers a center control feature to adjust the mix of center information for stereo sources. TruSurround HD4 builds upon these features by adding the unique ability to process input from 1.0 to 6.1 channels for playback over front oriented loudspeaker configurations ranging from 4.0 to 5.1 channels - so the sound surrounds the listener, but the loudspeakers don't. Both technologies utilize additional proprietary algorithms from SRS Labs to optimize bass performance, provide better intelligibility of vocals, and deliver maximum high -frequency clarity.

About D2Audio Corporation
The D2Audio Corporation, developer of the world's only intelligent digital audio amplifiers, supplies a full line of cost -efficient, powerful, multichannel platforms including ICs and firmware with market leading performance and superior sound quality for digital media applications in consumer, professional, and automotive industries. The patented D2Audio Intelligent Digital Amplifier technologies, now with D2Audio SoundSuite™ technologies, delivers an immersive audio experience on the D2Audio® Digital Audio Engine™ (DAE) IC platform. For more information on D2Audio and its products, please visit www.d2audio.com.

About SRS Labs, Inc.
SRS Labs develops advanced audio and communications technology that optimizes and improves the listening experience through techniques based on the latest research into the human auditory system. With over 600 million products shipped worldwide, SRS Labs is a leader in audio. Incorporated in products ranging from HDTVs and mobile phones to PCs and automotive entertainment, SRS Labs audio and speech signal processing provides the best possible sound on every form factor and in every environment. SRS Labs surround sound solutions enable 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, Japan, Taiwan, Europe and Korea.

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