SRS Labs and Arima Communications Enable the 'WOW' Factor on Mobile Phones

SRS Labs and Arima Communications Enable the 'WOW' Factor on Mobile Phones

May 15, 2007

Arima Communications Licenses SRS Labs' WOW HD Technology
to Enhance Audio for Multimedia Phones; First Phone is O2's
Xda Flame

    SANTA ANA, Calif., May 15 /Xinhua-PRNewswire/ -- SRS
Labs, Inc. (Nasdaq: SRSL), a leading provider of surround
sound, audio and voice technologies, today announced that
Arima Communications, an Original Design Manufacturer (ODM)
based in Taiwan, has licensed SRS WOW HD(TM) audio and bass
enhancement technology for a variety of new high end
Windows Mobile phones, starting with the O2 Xda Flame which
is branded and distributed by O2 Asia Pacific & Middle
East (O2 AP & ME). Under terms of this agreement, Arima
is now licensed to implement SRS WOW HD audio solutions as
part of their handset designs to streamline the licensing
process for customers while providing industry-leading
SRS-branded audio solutions to wireless handset makers and
service providers worldwide.

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

    "SRS Labs is the perfect choice to become our
audio technology partner because Arima will settle for
nothing less than the best stereo imaging and bass
performance for our multimedia-savvy consumers," said
Jason Chen, Assistant Director of Software Design, Arima
Communications.  "SRS WOW HD is a pivotal feature
enabling the Flame to deliver a full multimedia experience.
 Great video demands great audio." The O2 Xda Flame
also features NVIDIA's GoForce(R) GPU for visually-rich
Mobile TV broadcasting and a TV-out connector.

    SRS WOW HD provides a richer, more natural sound for
audio and restores clarity often lost in the mixing and
compression process.

    "We're excited to work with a market leader like
Arima Communications," said Michael Franzi, vice
president of sales - licensing, SRS Labs.  "Arima's
dedication to delivering the best possible multimedia
experience and subsequent adoption of SRS WOW HD is an
important design partnership for SRS Labs, which will
further elevate the SRS WOW HD brand in the 21 million
unit-a-year global Window's Mobile phone market.  We look
forward to broadening our relationship with Arima and
marketing this 'total solution' through joint marketing
efforts and innovative technology and product
advancements."

    Arima Communications specializes in the research,
development, manufacturing and marketing of mobile
communications products.  The company produces multi-band
GSM, GPRS, 3G and smart phones.  It also develops high-end
Pocket PC phone, like the design developed for the O2 Xda
Flame.

    SRS WOW HD improves the audio performance of compressed
audio, providing optimized bass response, high frequency
definition and clarity, an expanded audio field and more
natural sound that increases the listeners involvement in
the multi-media experience. The technology is used to not
only deliver superior sound over stereo earphones but is
also a key ingredient used to tune each handset's speaker
or speakers to achieve maximum sound quality, dynamic range
and imaging. To date, more than 500 million hardware and
software products that include the SRS WOW family of audio
technologies have shipped or have been downloaded.  The
technology continues to be the top choice for manufacturers
due to flexibility, ease of integration, better overall
performance and cost savings benefits.

    The O2 Xda Flame is currently being shipped throughout
Hong Kong, Taiwan, Thailand, Singapore, UAE and other parts
of Asia.

    About SRS Labs, Inc.

    SRS Labs develops advanced audio and communications
technology that optimizes and improves the listening
experience through techniques based on the latest research
into the human auditory system.  With over one billion
products shipped worldwide, SRS Labs is a leader in audio.
Incorporated in products ranging from HDTVs and mobile
phones to PCs and automotive entertainment, SRS Labs audio
and speech signal processing provides the best possible
sound on every form factor and in every environment.  SRS
Labs surround sound solutions enable 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.

    About Arima Communications Corp.

    Arima Communications Corp. (abbr. Arima Communications,
TSEC listed number: 8101.TW), established in August 1999, is
the leading professional handset ODM company certificated by
worldwide first tier handset branding companies, which
commission Arima Communications to design and produce
mobile phones. Arima Communications specializes in mobile
communications products. Currently, the main product lines
are the feature phones and smart phones in GSM / GPRS and
3G / HSPA. Arima Communications oriented as a total
solution provider, is capable of providing its customers
the full plans of market research, product design, product
development, manufacture, product certification, global
logistics and after-sales service in global presence up to
heaps of countries.

    Arima Communications not only equips with the solid
ability to product development, but also controls the core
technology of wireless communications. As a result, Arima
Communications has been successful in wireless
communications field for decades. Apart from key
technologies in communications protocol, audio & video
multi-media application, user interface, and application
software, and etc., Arima Communications is developing the
advanced technologies and products in 3G feature phones and
smart phones actively. For more information about the
company, please visit http://www.arimacomm.com.tw .

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


    For more information, please contact:

     Media:  Cyndee Pelino, Marketing Manager
     SRS Labs, Inc.
     Tel:   [phone]
     Email: [e-mail]

     Spokesman:  Mr. Stephen Hung
     Tel:   [phone]