SRS Labs and LG Electronics Transform PDA into Mobile Theater

LG Electronics Licenses SRS Labs’ Mobile HD Technology Bringing Surround Sound to Mobile Devices for the First Time with the N1 PDA

SANTA ANA, Calif.--(BUSINESS WIRE)--SRS Labs, Inc. (NASDAQ:SRSL), a leading provider of surround sound, audio and voice technologies, announced today the first product to feature SRS Mobile HD™ is available from LG Electronics. The new LG N1 PDA offers the best mobile audio experience on the market for consumers. Mobile users around the globe are demanding improved audio reproduction to accompany the emerging video options available from portable devices; SRS Mobile HD delivers theater-like surround sound, taking the portable video and music entertainment experience to an entirely new level.

“In a global market where consumers expect new portable media devices to include video and music capabilities, superior sound quality is now a vital feature for manufacturers to distinguish their products to consumers”

The N1 includes GPS navigation and a T-DMB (Terrestrial - Digital Multimedia Broadcasting) receiver for transmitting multimedia to the PDA. The N1 supports various video and audio files including DIVX, AVI, WMV, MP3, OGG, WMA and operates on the Microsoft® Windows Mobile 5.0 OS.

To offer consumers the best possible audio experience from both video and music, LG selected SRS Labs’ SRS Mobile HD technology. This complete audio rendering solution allows consumers to enjoy mobile video content in surround sound using headphones or standard earbuds. In addition, listeners wishing to use the device for mobile music will experience an enhanced 3D stereo sound with deep, rich bass and greater audio realism.

“In a global market where consumers expect new portable media devices to include video and music capabilities, superior sound quality is now a vital feature for manufacturers to distinguish their products to consumers,” said Michael Franzi, VP sales, licensing, SRS Labs. “LG’s N1, featuring SRS Mobile HD, is the first PDA to offer consumers a high-quality and realistic personal surround sound audio experience, to meet their demanding life style.”

SRS Mobile HD was designed specifically to run with minimal overhead on portable devices. Product manufacturers can match the software to their available resources by simply adding or subtracting features.

The LG N1 PDA is currently available throughout Korea.

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 one billion 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, Europe, Japan, Korea and Taiwan.

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.