Delphi, Eclipse, JVC, Kenwood, Panasonic, and Yamaha to Feature SRS Circle Surround and SRS Circle Surround Auto at CES 2006

SANTA ANA, Calif., Jan. 5 -- SRS Labs, Inc. (Nasdaq: SRSL), a leading provider of audio technology solutions, announced today that it will utilize a live HD Radio station broadcast to demonstrate its SRS Circle Surround technology at the 2006 Consumer Electronics Show in Las Vegas. Leading manufacturers will feature this broadcast at the show, including Delphi (North Hall/5206), Eclipse (North Hall/1418), JVC (Meeting Room/N221), Kenwood (Central Hall/12218), Panasonic (Central Hall/9405) and Yamaha (Central Hall/9844). KQRT 105.1, owned and operated by Entravision Radio, will be lending its HD Radio broadcast for the demonstration. SRS Labs will also receive the broadcast along with other product demonstrations in rooms N215 and N218 in the Las Vegas Convention Center.

"We are very pleased to work with the consumer electronic industry's leading manufacturers on this ground breaking technology," said Mike Canevaro, director of product line marketing for SRS Labs. "This collaboration shows that SRS Circle Surround is an effective solution for stations to deploy immediately."

"Eclipse licenses Circle Surround II from SRS Labs to offer our consumers an astonishing listening experience," said Michael West, Eclipse Marketing Director. "Our brand is known for superior sound quality and Circle Surround II fits perfectly with that image. Eclipse retailers appreciate it because it provides a key brand differentiator that you can hear."

Eclipse uses Circle Surround II on their AVN5495, a second-generation unit from their navigation series product line.

About SRS Circle Surround

Radio and television stations across the world use SRS Circle Surround II encoding technology to deliver full-bandwidth 7.1 channel surround sound content over any stereo transmission path. SRS Circle Surround encoded signals are compatible with mono, stereo, LCRS, and SRS Circle Surround decoders. When decoded with Circle Surround II, the listener hears the complete multichannel mix. SRS Circle Surround decoders also enhance dialog clarity and shape a maximized bass response with sculpted filters and driver physics to go beyond the low frequency limitations of speakers and headphones. SRS Circle Surround Automotive is a full decoder suite that is tuned for each car's interior geometry to eliminate the "sweet spot" problem in surround sound playback.

Broadcasters using SRS Circle Surround include ABC, CBS, CBN, NBC, ESPN, ESPN HD, FOX, MBS (Japan), GAORA (Japan), FM Tokyo (Japan), Swedish Television (Sweden), Guang Dong Radio (China), CNR (China) and many others. Manufacturers such as Delphi, Fujitsu Ten, Honda, JVC, Marantz, Panasonic, Pioneer, Kenwood, Motorola Panasonic, Toyota, and Yamaha feature SRS Circle Surround or SRS Circle Surround Auto in their products. For more information on SRS technologies, visit http://www.srslabs.com. To license SRS technologies contact sales@srslabs.com.

About SRS Labs, Inc.

SRS Labs is a recognized leader in the advancement of audio and voice technology. The company works with the world's top manufacturers to provide a richer entertainment experience through patented sound techniques. SRS Labs' technologies can be heard through products ranging from televisions, LCD and plasma monitors, cell phones, MP3 players, car audio systems, and notebook and desktop computers. The company also offers hardware and software tools to professionals and consumers for the creation, production and broadcast of content featuring SRS Labs' technologies. Valence Technologies Limited, a Hong-Kong based subsidiary of SRS Labs, is a semiconductor company that designs and sells custom ASICs and standard ICs to leading manufacturers worldwide. Based in Santa Ana, Calif., the company also has licensing representation in Hong Kong, Japan, Europe, and Korea. For more information about SRS Labs, Inc. please visit http://www.srslabs.com. The information on the aforementioned website is not incorporated by reference into this press release.

Investor Contact: Media Contact:

Connie Chandler Chris Locke

+1-714-573-1115 +1-949-442-1070 x 3206

irstrat@aol.com chrisl@srslabs.com

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