SRS Labs Inks Deal With Chinese FPTV Manufacturer Expanding Its Reach To Eight Of The Region’s Top 10 FPTV Manufacturers

SANTA ANA, Calif. ---- SRS Labs (NASDAQ:SRSL), the industry leader in surround sound, audio enhancement, and voice post-processing technologies, today announced that it has further increased its Chinese FPTV market penetration through a new licensing agreement with one of China’s largest flat-panel television manufacturers, Guangdong Changhong Electronics Co., Ltd. This new partnership agreement will allow Changhong to license the industry’s most popular front-rendered surround sound solutions, SRS TruSurround XT® and SRS TruSurround HD™, for implementation within their growing FPTV product line, solidifying SRS Labs’ position as the de facto provider of audio processing solutions to the Chinese TV market.

“China is the fastest growing flat-panel TV marketplace today and we are determined to further expand our leading penetration within the region through strategic partnerships with local manufacturers like Guangdong Changhong,” said Allen H. Gharapetian, Senior Vice President of Marketing for SRS Labs. “As one of China’s leading manufacturers of FPTVs, Changhong understands the importance of delivering an impressive audio and visual experience right out of the box, which is why we are excited to be working with them to provide their customers with the industry’s most popular and effective immersive front-rendered surround sound technologies available.”

Experiencing an average upward annual growth of 23 percent over the past three years and unit shipments of nearly 47 million TVs within the region in 2011, the Chinese FPTV market is significant and highly competitive. Changhong is the region’s fourth largest manufacturer of flat-panel TVs, with more than 6.2 million units shipped within China last year.1 SRS is the leading provider of audio post-processing solutions to the worldwide TV manufacturers, including the growing Chinese FPTV makers. This new agreement expands SRS’ reach to eight of the region’s top 10 TV manufacturers, adding Changhong to SRS’ list of partners in the region, including Hisense, Haier, Skyworth, TCL, AOC, Hannspree and Xoceco.

SRS’ patented audio technologies are engineered to compensate for the stylistic and physical compromises made when designing and manufacturing high-tech flat-panel TVs. Based on this new per unit licensing agreement, Changhong will have access to SRS’ most popular front-rendered surround sound technologies while having the opportunity to contemplate additional use of other SRS technologies in their TVs to enhance performance or solve specific audio challenges. In addition to getting an immersive surround sound environment from their TV’s built-in speakers, SRS TruSurround XT and SRS TruSurround HD allow Changhong’s customers to experience other audio enhancements, including deeper bass, crisper dialogue, improved definition and higher fidelity sound regardless of their choice of content.

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