SANTA ANA, California, September 11 /PRNewswire/ --

- SRS Labs signs new deal with Profilo Telra to license SRS TruSurround
      XT virtual surround audio technology

    - European TV manufacturer Profilo Telra controls Telefunken brand of TVs
      across Europe

    - SRS' second licensing deal this year with a major European TV
      manufacturer

SRS Labs, Inc. (Nasdaq: SRSL), a leading provider of surround sound,
audio enhancement and voice technologies, announced today that Turkish-based
Profilo Telra, Europe's third largest original design manufacturer (ODM) of
TVs, has chosen SRS Labs as their audio enhancement provider.

(Logo: http://www.newscom.com/cgi-bin/prnh/20070322/LATH036LOGO)

The licensing deal with Profilo Telra is for use of the SRS TruSurround
XT(R) virtual surround sound technology that the manufacturer will
incorporate into their Telefunken brand of flat panel TVs.

Profilo Telra selected SRS Labs as their audio partner of choice because
of the unique and demonstrable features SRS TruSurround XT provides to their
specialized line of high-end LCD and Plasma TVs. SRS TruSurround XT processes
multichannel content to create a virtual surround sound experience so
consumers feel as if "phantom" speakers appear to extend all around them,
producing an amazing surround sound effect, without the clutter of extra
wires or speakers placed around the room.

Profilo Telra, who boasts a 20% share of the Turkish TV market,
distributes televisions under the Telefunken brand in Europe. SRS TruSurround
XT will be featured in nine LCD and Plasma models within two distinct
Telefunken product lines, Invio and Visium. Profilo Telra will also add SRS
TruSurround XT in OEM brands such as Tevion.

"Profilo has developed extensive alliances with world class technology
providers and so it's only natural that we would partner with SRS Labs, an
industry leader in audio enhancement technologies for LCD TVs," said Arnoux
Desurmont, Senior VP, Telefunken Europe. "It's critical that our products
offer more value for the money and deliver innovative features with superior
performance for the home entertainment industry, which SRS technologies can
help to provide."

"Profilo Telra is one of Europe's largest manufacturers of LCD TVs and we
are excited to partner with them in delivering our technologies in their
latest models," said Eduard Vendrell, Sales Executive-EMEA, SRS Labs. "As
competition heats up in the flat panel TV market, OEMs and product designers
are quickly realizing the competitive benefits of SRS technologies to deliver
the best available audio experience to the customer without the need to add
more expensive equipment."

According to a recent report from DisplaySearch, LCD TVs was the only
technology to enjoy Y/Y revenue growth in Q1'07, rising to 32% of the global
TV market on a unit basis and 57% on a revenue basis. Western Europe was the
top region for LCD TVs, holding a 35% share. Factor in North America and
Japan, the three regions accounted for 76% of the worldwide penetration of
LCD TVs.

DisplaySearch also reported that just over 58 million flat panel TVs
shipped worldwide in 2006. Of those, 38 percent, or 22 million, units
featured SRS audio technology, based on royalty revenue reports. SRS
technologies continue to be the first choice in audio enhancement for
manufacturers due to their flexibility, ease of integration, better overall
performance and cost savings benefits.

Profilo Telra is the second major European TV manufacturer that has
partnered with SRS Labs in the last few months.

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(R), SRS
TruSurround(R) and SRS Circle Surround(R). 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 http://www.srslabs.com.

About Profilo Telra & Telefunken

Telefunken, a pioneer in the Electronics sector, inventor of 20.000
patents and of PAL color TV system, started operations in Germany in 1903 in
the field of radio transmission. Over the years Telefunken branched out into
the wider panoply of Consumer and Professional electronics equipment, with
activity well-established across Europe, particularly in the field of TV
products. For more information, visit http://www.telefunken-tv.eu

Profilo-Telra, established in 1970, has been manufacturing CE products
for companies such as Sony, Matsushita, Thomson, Philips, other leading CE
brands and many large retailers' private labels. With a capacity of up to 5
million TVs per year it benefits from necessary volume and product diversity
to satisfy a large base of customers and consumers. Profilo-Telra produces
LCD, Plasma, and CRT TVs ranging from 14" to 50", including Digital TVs, HD
Ready and FULL HD TVs, and TVs with DVD. The Company has extensive alliances
with world-class technology providers and leading chip manufacturers.

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

SRS Labs, Inc, Contact:                  Press Contact:
    Cyndee Pelino, Marketing Manager         Jim Noyd, Noyd Communications
    +1-949-442-5518                          +1-310-374-8100
    cyndeep@srslabs.com                      jim.noyd@noydcom.com

    Web site: http://www.srslabs.com
              http://www.telefunken-tv.eu