VH1 to Present Duran Duran Television Special in SRS Circle Surround

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“Duran Duran - THE SET brought to you by Baileys” Includes Special Concert Footage and
Behind the Scenes Interaction with Fans

SANTA ANA, Calif., Dec. 14, 2004 - SRS Labs, Inc. (NASDAQ: SRSL), one of the world’s leading providers of advanced audio, voice and semiconductor technology solutions, announced today that VH1 will present its “Duran Duran THE SET” television special on Dec. 14 in SRS Circle Surround®, giving viewers at home the feeling that they are in the front row for those parts of the show that are performance-based. This will be the first time that VH1 broadcasts a program using this technology.

Recorded at Sony Music Studios in Los Angeles, this rare special examines the unique relationship that the five members of Duran Duran have with their fans – both on-stage and off. Combining live, in-studio performance footage with interviews and documentary B roll, the first airing of “Duran Duran – THE SET Brought to you by Bailey’s” will be at 11:00 p.m. EST on Tuesday, December 14, with repeats shown throughout December.

In stark contrast to the arena and stadium shows that the band have been doing over the past year (the most recent of which was filmed by Coming Home Studios for a DVD release in the spring of next year), this one-hour special showcases the band performing in a rare and intimate setting, in front of a small audience. Inter-cut with these performance segments is anecdotal interview clips with the band members and some of their most dedicated fans.

Everyone wants powerful surround sound in their homes, yet most of the world is still broadcasting in stereo. While consumers around the world are beginning to upgrade their home theater systems to include multi-channel capability, the vast majority of the broadcast infrastructure cannot support discrete digital surround sound. Circle Surround bridges this gap, allowing stereo broadcasters to offer surround sound without changing their infrastructure. Because it is backward compatible with all playback environments, including mono, stereo and other matrix surround systems, one broadcast mix in SRS Circle Surround can satisfy all current playback environments. For optimum playback, a home theater receiver with Circle Surround II™ will decode the broadcast into enveloping surround sound. However, all that is needed is a 5.1 surround sound system because Circle Surround is compatible with Dolby® Pro Logic, Pro Logic II and DTS® Neo 6 decoders, which are the surround decoding formats included in the vast majority of home theater receivers.

Duran Duran’s manager, Wendy Laister said, “Duran Duran are always looking for ways to make the experience of watching a concert performance on television as close to the real thing as possible, so when we were approached about doing a broadcast using Circle Surround we jumped at the opportunity. The whole presentation of the VH1 special is intimate – so what better way to give you the feeling that the band are right there in your living room than using this new technology. It doesn’t get much more realistic than this!”

With the release of Astronaut, their first studio album back together in 21 years, the five original members of Duran Duran (singer Simon LeBon, keyboardist Nick Rhodes, guitarist Andy Taylor, drummer Roger Taylor and bassist John Taylor) are ready to take on the world once more. Their Astronaut World Tour will start in January in Japan, head to North America in February for 40+ dates and will then go on to Europe through next summer (see duranduran.com for details). The VH1 Baileys program will provide a unique opportunity to see them play live before they hit the road.

Mike Canevaro, SRS Labs’ director of strategic development, surround technologies says, “Viewers of this rare television special will experience the power and excitement of a live concert in the intimacy of their living room. We are honored to work with VHI, Sony Music Studios, and Duran Duran to help bring a thrilling audio experience to music fans everywhere.”

About Circle Surround®
Circle Surround (“CS”) is a patented and highly versatile multichannel audio encoding and decoding technology capable of supporting a wide range of surround sound creation and playback applications. CS hardware and software encoders can encode up to 6.1 channels of discrete audio for distribution over existing two-channel carriers such as broadcast television, cable and satellite transmission, streaming media over the Internet, CDs and VHS tapes. The next generation of Circle Surround is Circle Surround II (“CS II”), a powerful and versatile multichannel decoder capable of delivering up to 6.1 channels of audio from any mono, stereo, matrix-encoded, or Circle Surround-encoded material.

Circle Surround encoding has made inroads to many of Hollywood’s most influential creative talent and professional broadcasters. In September 2004, SRS Labs formed a strategic alliance with Coming Home Studios (“CHS”), one of LA’s hottest new full service television and DVD production companies, to create and distribute live concert DVDs in SRS Circle Surround. CHS has produced many of today’s top DVDs including Dave Matthews Band – The Central Park Concert, Gloria Estefan – Live & Unwrapped, Rush – Live in Rio, and many others. Recent DVDs encoded in Circle Surround from this exciting new partnership include: Matchbox Twenty’s SHOW – A Night In The Life Of Matchbox Twenty, Boz Scaggs’ Greatest Hits Live and Godsmack – Changes. Lava Records, EMI Hong Kong and Arbors Jazz have also distributed music CDs. One of the most powerful features of the technology for music CDs is that it is 100 percent compatible with all playback environments, from headphone to one-speaker mono to two-speaker stereo or multi-speaker surround sound. One mix now satisfies every playback system.

The CS format is the optimum surround solution for television, radio, and music because it enables anyone currently delivering their content in stereo to now deliver up to 6.1 surround to their listeners or viewers with no change to the distribution or broadcast infrastructure. Top television broadcasters in the U.S. and abroad, who have adopted Circle Surround technology include ABC, CBS, NBC, ESPN, ESPN 2, ESPN HD, FOX, FX, TNT, PBS for dozens of programs including the 55th Annual Prime Time Emmy Awards, X Games, NFL and NBA broadcasts. Circle Surround is also quickly being adopted as the surround encoding technology of choice for radio broadcasting. For the U.S. market, it is the only surround format approved by iBiquity Digital for its HD Radio technology, which is the only FCC-approved system that provides digital broadcasting within the existing AM and FM spectrum and also supports analog broadcasts to legacy receivers. Abroad, both TOKYO FM in Japan and Guangdong Radio in China, which have audiences in the hundreds of millions, regularly broadcast material in Circle Surround.

To date, Circle Surround decoding has been incorporated by leading hardware and software manufacturers including: Kenwood, Marantz, Motorola, Theta Digital, Accuphase, M-Audio, Orion Studios and Smart Devices. A wide range of analog and digital implementation options for CS and CS II are available from the SRS Labs’ family of platform partners including AKM, Analog Devices, ASP Microelectronics, Cirrus Logic, Philips Semiconductor, STMicroelectronics and Texas Instruments. CS II features patented post-processing techniques to enhance the surround sound experience, including SRS Dialog Clarity™, which improves the intelligibility and clarity of center channel information such as dialog, and SRS TruBass®, which uses patented psychoacoustic techniques to deliver deep, rich bass from any playback system, including those with or without a subwoofer.

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, flat panel displays, DVD players, mobile phones, car audio systems, headphones 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. SRS Labs' wholly owned subsidiary, ValenceTech, is a Hong Kong-based 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.