Oki Electric Launches World's Smallest 3D Surround LSI for Mobile Phones Using SRS 3D® Technology by SRS Labs

ML2601

TOKYO, and SANTA ANA, Calif., Sept. 27, 2005 -- Oki Electric Industry Co., Ltd. (TSE: 6703) and SRS Labs, Inc. (NASDAQ: SRSL) today announced that Oki has unveiled its ML2601, the world's smallest 3D surround single-chip Large Scale Integration(LSI) for mobile phones, developed together with SRS Labs. This 3D surround LSI offers high-quality sound and low power consumption, while including two speaker amplifiers that originally were not included in the original mobile phone platform. Sample shipments for this chip starts today, with volume shipment planned for February 2006.

"Based on our strong track record in the mobile phone market, we succeeded in developing a single-chip with 3D surround and speaker amplifier functions. Working together with SRS Labs, a company that is known for their high-quality 3D surround technology and experience in the portable audio market, we can now offer a simple, small, low-cost and low-power consumption chip, which makes it the best choice for mobile phones," said Akira Kamo, president of Silicon Solutions Company at Oki Electric.

The 3D surround chip includes two of SRS Labs' technologies; SRS 3D® (Extreme mode), a technology that delivers an incredibly wide 3D sound image to products with closely located speakers, and SRS Headphone™, a technology that enhances stereo over headphone playback. The hardwired logic circuitry reduces power consumption by 80 percect compared with previous generation chips, thereby resulting in longer audio playback. The chip includes a two-channel amplifier, rated at 650mW at 3.6V for stereo - mobile phones. By adopting W-CSP packaging technology, Oki also enabled a super-small package size of 3.2mm X 2.5mm.

SRS Labs is very pleased to be selected by Oki as a core component in their recent LSI advances of cell phone audio performance, said Michael Franzi, vice president of marketing & sales - Licensing at SRS Labs. By implementing our patented 3D surround technology in this extremely small, cost-effective, and high-performance package, Oki is introducing a new level of audio enhancement to the worldwide mobile phone market.

[Reference] System Framework using ML2601

About Oki Electric Industry Co., Ltd.

Founded in 1881, Oki Electric Industry Co., Ltd. is Japan's first telecommunications manufacturer, with its headquarters in Tokyo, Japan. With the corporate vision, "Oki, Network Solutions for a Global Society," Oki provides top-quality products, technologies and solutions to its customers through its info-telecom system business, semiconductor business and printer business. All three businesses functions as a collective force to create exciting new products and technologies that satisfy a spectrum of customer needs in various markets. Visit Oki's global web site at http://www.oki.com/.

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 Labsftechnologies. Valence Technology 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.

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

Notes:

SRS is registered trademarks of SRS Labs, Inc. in the U.S. and selected foreign countries.
SRS Headphone is a trademark of SRS Labs, Inc.
Other names of companies and products are trademarks or registered trademarks of the respective companies and organizations.

Contact for Oki Electric:

For Asia and Other Areas: Public Relations Division: Phone: +81-3-3580-8950

For Europe and Americas: Public Relations Division: Phone: +1-408-737-6479

Contact for SRS Labs, Inc.:

Public Relations:: Phone: +1-949-442-1070 x 3206

Investor Relations:: Phone: +1-949-442-1070 x 3093

Information in the press releases is current on the date of the press announcement, but is subject to change without prior notice.