Kodak Digital Cinema Systems Feature SRS Surround

SANTA ANA, Calif., Dec. 12, 2005 - SRS Labs, Inc., a leading provider of audio technology solutions, announced today that Kodak Digital Cinema has selected SRS Circle Surround for their digital cinema pre-show high definition systems. Kodak is currently the world's leading independent supplier of digital pre-show solutions, supplying more than a dozen exhibition chains in the US, Canada, and Japan. Digital cinema pre-show packages encoded and delivered in SRS Circle Surround will begin with an animated SRS logo/trailer, expanding SRS Labs brand reach from television, radio, and millions of consumer electronics products into theaters.

"We are tapping into the very beginning of what is inevitably going to be a huge trend in the motion picture industry," said Michael Canevaro, senior director, professional audio at SRS Labs. "To date, there are approximately 97,000 screens available worldwide, which is an incredible number of potential brand impressions for this marketplace. Working with Kodak Digital Cinema creates a clear path for SRS to enter the digital cinema pre-show market, enabling a broader consumer audience to benefit from our innovative sound technologies."

SRS Labs first began working with Kodak earlier this year, when both companies collaborated on a demonstration of the Kodak Digital Cinema HD Pre-Show using SRS Circle Surround at the Kodak-sponsored ShoWest Showcase, "An Evening of Independent Film."

"A great movie experience requires great images and great sound," says Drena Rogers, worldwide director of sales for Kodak Digital Cinema, "and that's as true for the pre-show as it is for the feature presentation. The state-of-the-art audio that SRS delivers contributes to the power, the enjoyment, and the emotional impact of the program before the feature movie begins."

SRS Circle Surround encoding delivers full-bandwidth surround sound content for up to 7.1 channels over any stereo transmission path. The resulting composite two-channel mix is backward compatible with mono, stereo, and LCRS playback. When decoded with Circle Surround II, the listener experiences up to 7.1 surround playback true to the original mix. To date, over 1 billion television viewers have experienced Circle Surround. Broadcasters and professional audio mixers have chosen the technology for its flexibility, ease-of-use, and overall audio performance. Top radio and television broadcasters around the world who have created programming using 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.

For information regarding Circle Surround for professional use, visit our website at http://www.srslabs.com.

About Kodak Digital Cinema
Kodak Digital Cinema provides a full range of solutions for applications ranging from digital pre-show to digital feature presentations. The Kodak networked solutions include all systems hardware driven by unique Kodak software, and are supported by worldwide services, including content preparation and delivery as well as remote monitoring and on-site maintenance and repair. For more information, visit www.kodak.com/go/dcinema.

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 www.srslabs.com. The information on the aforementioned website is not incorporated by reference into this press release.