SRS Labs Partners With Subaru To Bring SRS Circle Surround Auto™ To The New Subaru

The 2008 Subaru Impreza is the first vehicle in the U.S. to incorporate Circle Surround Auto™ providing high-quality surround sound CS Auto™ delivers surround sound from any audio source

SANTA ANA, CA - September 18, 2007 - SRS Labs Inc. (NASDAQ: SRSL), a leading provider

of surround sound, audio and voice technologies announced today that Subaru has included SRS CS
Auto (Circle Surround Auto™) as an optional feature now available on the new 2008 Subaru Impreza.

CS Auto not only creates a thrilling in -vehicle surround sound experience but also produces overall
higher quality sound from all audio sources, including surround encoded content, mono or stereo radio
broadcasts, satellite radio, HD Radio, standard CD and compressed music files from a portable media

"The sound quality offered by SRS Circle Surround Auto is amazing," said Tim Colbeck, vice
president of sales, Subaru of America, Inc. "It's a smart and extremely effective way of producing
premium quality sound in a vehicle."

Designed specifically for the unique challenges presented by automobile interiors, CS Auto includes
processing to elevate the sound image to ear level, even from speakers located in some car -doors and
under the dashboard. Additionally, it creates a "phantom center speaker" to effectively pull out and
clarify vocals in the audio track. CS Auto also includes a channel -mixing feature that enables
passengers in the front and rear seats to clearly hear all vocals and be immersed in the audio
experience. Finally, CS Auto incorporates SRS Labs' patented bass enhancement system to create a
virtual subwoofer to complete the surround experience.

While many modern vehicles have been transformed into mobile home theaters complete with
surround sound and rear seat family entertainment systems, the incoming audio from most sources is
still mainly mono or stereo, and unable to take full advantage of these multi -speaker systems. CS Auto
employs a surround decoding solution that produces up to 6.1 channels of surround sound from any
audio source and improves overall audio fidelity with patented sound enhancement and audio imaging

"Subaru understands the unique challenges that can limit audio performance within the interior of an
automobile, which is why they choose SRS to be their audio processing partner for the 2008 Subaru
Impreza," says Chris Sabbarese, Product Manager for SRS Labs. "With CS Auto consumers will
experience high -end surround sound, with enhanced audio fidelity, along with an expansive sound
field and rich, deep bass."

All new and available in Subaru dealer showrooms across the country, the 2008 Subaru Impreza and the company's performance flagship the Subaru Impreza WRX boast more sophisticated styling, along with enhanced comfort and utility, while still delivering the handling and performance of Subaru
Symmetrical All -Wheel Drive.

Also new for 2008, is the availability of stability control or Subaru Vehicle Dynamics Control (VDC). For more information on the Subaru Impreza and for product images visit In 2007, Subaru and SRS Labs teamed up to integrate SRS WOW® audio and bass enhancement technologies into both the Subaru Legacy and Subaru Outback models. SRS Labs has a global presence in the automotive market with over five million automotive entertainment products shipped worldwide featuring SRS technologies - from manufacturers such as Toyota, Panasonic, Fujitsu Ten, Kenwood and more.

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

About Subaru of America, Inc.
Subaru of America, Inc. is a wholly owned subsidiary of Fuji Heavy Industries Ltd. of Japan.
Headquartered in Cherry Hill, N.J., the company markets and distributes Subaru Symmetrical
All -Wheel Drive vehicles, parts and accessories through a network of 600 dealers across the United
States. Subaru makes the best -selling All -Wheel Drive car sold in America based on R.L. Polk & Co.
new vehicle retail registration statistics. For additional information visit

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


Featured Product



RETRO-M is designed to replace existing Home Intercom Systems and operate on existing 3 and 4 wire systems. BLUETOOTH you music by adding the BT-RECEIVER. No need to remove existing master wall housing, trim plates available to cover those large holes. The RETRO-M intercom unit has a built-in AM/FM radio. Plug in mp3 players such as iPod, iPhone, Zune or any other hand held player into the master and share your music with the entire family. Choose between two music sources; listen to the radio in one room and the mp3 in another room.