SRS TruSurround XT Chosen by MIPS Technologies as Standard Virtual Surround Sound Technology for Consumer Audio Platform

SANTA ANA and MOUNTAIN VIEW, Calif., June 14, 2004 - SRS Labs, Inc. (NASDAQ: SRSL), a leading provider of innovative audio, voice and semiconductor technology solutions, today announced that MIPS Technologies, Inc. (Nasdaq: MIPS) has chosen SRS TruSurround XT® (“TS XT”) as the virtual surround sound technology of choice for their newest Consumer Audio Platform, which now is available to customers. The MIPS™ Consumer Audio Platform is the industry’s most comprehensive hardware and software platform for consumer electronics products ranging from home theater A/V receivers, LCD TVs and plasma displays to mobile devices and automotive entertainment systems. The new platform offers the industry’s most popular audio coders and decoders (codecs), including SRS TruSurround XT virtual surround sound technology, which have been optimized to the MIPS32® microprocessor architecture.

TruSurround XT is a universal virtual surround sound technology for home theater products that creates an incredible surround sound experience over just two speakers from any stereo, two-channel encoded, and multichannel encoded material. With its inclusion in this new MIPS Technologies Platform, manufacturers can license the TruSurround XT technology directly from SRS Labs and dramatically speed up the production process because the technology has already been ported to the MIPS32 architecture. This eliminates long development times for SOC designs and allows manufacturers direct and immediate access to the technology, giving them the competitive advantage of speed to market.

“Through our alliance with MIPS Technologies, we are offering SOCs designers a seamless method for integrating our technology into their designs,” said Lupita Ho, director of strategic IC platform development for SRS Labs, Inc. “The MIPS Consumer Audio Platform provides flexibility and a faster time to market, thereby allowing us to quickly reach a significant majority of audio device manufacturers worldwide. Our close alliance with MIPS Technologies continues to help establish TruSurround XT as a standard in the consumer marketplace and we are pleased that they have chosen it as a must-have technology in their platform.”

“SRS Labs is one of the leading providers of the most advanced audio technology and an important partner in our efforts to bring an optimized audio platform to the industry,” said Jeff Sasagawa, director of market development and system solutions at MIPS Technologies. “Their TruSurround XT technology already is being sought after by lead customers, and thanks to the joint development efforts by SRS and MIPS Technologies engineers, the optimized algorithms will offer an easier and more flexible path for SOC designers looking to ship products to market quickly.”

For manufacturers wishing to include the world’s most popular and flexible virtual surround sound technology in their products, they can contact SRS Labs or MIPS Technologies. SRS technologies provide designers with an easy integration of the very best available virtual surround sound using very low memory and power consumption. This allows the designer more memory space on the chip and it reduces the need for additional power requirement, translating to a competitive advantage for manufacturers.

For information regarding SRS technologies on the MIPS32 architecture, contact Lupita Ho at (949) 442-1070 Ext. 5120. Additional information is also available from the company’s website at www.srslabs.com.

About MIPS Technologies
MIPS Technologies, Inc. is a leading provider of industry-standard processor architectures and cores for digital consumer and business applications. The company drives the broadest architectural alliance that is delivering 32- and 64-bit embedded RISC solutions. The company licenses its intellectual property to semiconductor companies, ASIC developers and system OEMs. MIPS Technologies and its licensees offer the widest range of robust, scalable processors in standard, custom, semi-custom and application-specific products. The company is based in Mountain View, Calif., and can be reached at +1 (650) 567-5000 or www.mips.com.

About TruSurround and TruSurround XT
TruSurround is the established standard for the virtualization of 5.1 surround sound over two-speaker systems and has been featured in over 15 million consumer hardware products globally including products made by Hughes Network Systems, Matsushita, Mitsubishi Electric Corporation, Philips, Pioneer, Sony, Thomson Consumer Electronics, and Toshiba Corporation. The next generation TruSurround XT that was released in November 2001 includes bass enhancement and dialog clarity technologies, which provide deeper bass tones and clarify speech during passages that contain dynamic surround sound effects. The TruSurround family of technologies delivers an immersive home-theater surround sound experience from multi-channel audio material over standard stereo speakers or headphones. TruSurround is applicable to DVD players, televisions, set-top boxes, video game consoles and AV surround sound receivers. To hear an online demonstration of TruSurround, visit http://www.srslabs.com/LicensingTechMultichannel.asp#TS .

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.

Except for historical information contained in this release, statements in this release, including those by Ms. Ho in paragraph three, are forward-looking statements and projections (which include statements concerning plans and objectives of management for future operations) 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.