-SRS Labs signs new deal with Sunplus, a global IC supplier, to license four key SRS audio enhancement technologies for use in various chipsets -Sunplus SPV7100 offering SRS technologies will be available in CES 2008

SANTA ANA, Calif., Jan 8, 2008 - SRS Labs, Inc. (NASDAQ: SRSL), a leading provider of surround sound, audio enhancement and voice processing technologies, announced today that Sunplus Technology, one of the largest global suppliers of integrated circuits for consumer electronics products, has chosen SRS Labs as their audio enhancement provider.

The licensing deal with Sunplus is for use of four SRS technologies -SRS TruSurround XT®, SRS TruSurround HD™, SRS Headphone 360™ and SRS Mobile HD™ - into a wide range of IC's that will be used in TV's and portable devices from various manufacturers throughout the world. This relationship with Sunplus allows SRS Labs a tremendous opportunity to penetrate the portable DVD and media player markets, while further expanding its reach with TV manufacturers.

"We are very excited to be working with SRS Labs and enter into this new partnership," says Mr. Eugene Wang, the Product Marketing Director of Sunplus. "SRS technologies deliver a superior quality audio experience and are ideally suited for a wide range of feature -rich products. Moreover, it can be easily implemented into our chipsets to provide a flexible medium for our clients to integrate these enhancements into their products, such as portable DVD, media players and TV, in a more satisfying audio performance. Sunplus SPV7100 is the first state -of -the -art TV SoC single chip to have SRS technologies embedded. We believe by Sunplus advanced video, audio multimedia function capabilities, SRS audio technologies can extend Sunplus to offer feature -rich, performance -driven high audio quality products to the market. We do acknowledge the value of SRS technologies contributed and SRS fully support in this cooperation."

Each SRS audio technology offers a variety of features and benefits depending on the type of product it is integrated into. For example:

For Portable Devices:
• SRS Headphone 360™ enables an accurate surround sound headphone experience over standard stereo headphones or earbuds. Users enjoy an immersive surround sound experience from surround encoded or discrete multi -channel audio sources.

• SRS Mobile HD™ is a total audio enhancement solution that enables portable products to deliver immersive 3D audio from stereo music content and compelling surround sound for the exploding mobile TV market.

For Televisions:
• SRS TruSurround XT®, the leading virtual surround sound technology, processes any multichannel audio source to create a realistic surround sound experience over a two -speaker playback system. Users also enjoy maximum bass, improved dialog clarity, and the broadest listening "sweet spot."

• SRS TruSurround HD™ processes any multichannel audio source to create compelling virtual surround sound from 2.0 to 3.1 speaker configurations. Users also enjoy realistic clarity from high frequencies, maximum bass, improved dialog clarity, and the broadest listening "sweet spot."

"SRS Labs is pleased to welcome Sunplus into our platform partner program," said Ricky Wong, Regional Sales Director, Greater China Region for SRS Labs. "Sunplus brings with them years of experience in producing innovative IC solutions as well as a growing list of high -volume customers who are eager to differentiate their designs using our audio processing technologies. We look forward to working with them to provide their customers with superior quality solutions."

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 Sunplus
Sunplus Group, headed by Sunplus Technology Company Limited established in 1990, is devoted in IC design for electrical consumer applications. Sunplus offers not only IC design but also system solutions to maximize customer's benefits by differentiating each design. Sunplus' reusable IPs such as audio/video, microprocessor and digital signal processor technologies are applied to numerous IC solutions for multimedia home applications and ASICs that contributed to our quality life. Due to the expansion of business scope, Sunplus split its BUs into several fabless IC design companies in 2006. The LCD IC business was spun -off into Orise Technology Co., Ltd.; the Controller &Peripheral BU was transferred into Sunplus Innovation Technology Inc.; the Personal Entertainment BU and Advanced BU were spun -off into Sunplus mMobile Inc.
The parent company - Sunplus Technology, keeps working on Home Entertainment IC solutions such as VCD/DVD, DVR, DVB , LCD TV and DTV. For more information, please visit the Sunplus website:

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