SANTA ANA, Calif., September 27, 2007 -- SRS Labs, Inc. (NASDAQ: SRSL), a
leading provider of surround sound, audio enhancement and voice
technologies, announced the release of iWOW 2, the latest version of the
popular and award-winning iTunes plug-in for Macintosh computers.

iWOW 2 uses several patented audio enhancement technologies from SRS Labs
to provide full, 3D audio over desktop and laptop computers as well as
external speakers and headphones. iWOW 2 not only brings Mac users a
richer, more powerful and brilliant audio experience when listening to
music, videos or podcasts, but now it also provides new preset options and
offers listeners the ability to listen and enjoy movies and videos on
iTunes in surround sound over headphones.

With iWOW 2 users are now given the ability to create and save presets for
specific songs, videos and podcasts. An "Auto-preset' option, also new to
iWOW 2, automatically chooses the best iWOW preset based on the information
in the music or video. Additional presets were created specifically for
podcasts, techno and acoustic music plus there are three new playback
settings for videos. With iWOW 2 users can easily customize their audio
experience for different types of content.

Another new feature is iWOW 2's Movie Mode, which offers users a unique way
to enjoy movies and videos in iTunes. With virtual surround sound over
headphones, users can enjoy a home theater-like experience from their
videos on the go or at home.

The incorporation of several SRS audio enhancement technologies allows iWOW
2 users more control and flexibility over the audio content in iTunes. For
instance, the addition of SRS Headphone 360 creates amazing virtual
surround sound over headphones for videos and movies. SRS WOW HD improves
the audio performance of compressed and uncompressed audio by expanding the
size of the audio image in the horizontal and vertical sound field and
creating a deep, rich bass response. SRS 3D creates a three-dimensional
stereo enhancement for mono or stereo content while SRS 3D Center Control
uses a virtual "zoom" lens to dynamically extracts and position the dialog
in the foreground or background of the audio mix. SRS TruBass maximizes
bass response as SRS FOCUS optimizes speaker output to compensate and
reposition instrument placement. SRS Definition delivers a more lively and
brilliant sound by highlighting the high frequency details and restoring
data originally present in the audio source but was lost during the audio
compression process.

"SRS Labs is dedicated to introducing complete, customizable audio
solutions to strengthen Mac users' multimedia experience," said Tom Yuen,
Chairman and CEO, SRS Labs. "As the popularity of Mac's as entertainment
devices increases, so does the demand for enhanced audio to ensure the best
experience. With iWOW 2, music and video can be experienced with superior
audio that complements the visual experience."

System requirements for iWOW 2 are any Macintosh running OS X 10.2 or
better with iTunes 6 or better. The plug-in is available for download (Now)
directly from SRS Labs at (http://www.srslabs.com/iwow) and other leading
download sites. The plug-in sells for an introductory price of $19.99 after
a brief trial period. Users who have previously purchased iWOW 1 can try
the new version and upgrade for only $11.99.

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, SRS
TruSurround and SRS Circle Surround. 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) .