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To: Jay Malde who wrote (1050)	12/17/1997 4:06:00 PM
From: Winston Kim	Read Replies (1) \| Respond to of 1136

Might be good for tomorrow morning's open... NextLevel Will Include SRS Labs' TruSurround(TM) Virtual Audio Technology in New Line of Digital Cable Set-Top Boxes SANTA ANA, Calif., Dec. 17 /PRNewswire/ -- SRS Labs, Inc. (Nasdaq: SRSL), the world leader in advanced audio enhancement technology, announced today that NextLevel Systems, Inc., a leading worldwide supplier of systems and components for high-performance communications networks delivering video, voice and Internet/data services, has become the first cable set-top terminal manufacturer to sign a license agreement with SRS Labs to incorporate SRS Labs' award-winning audio enhancement technologies into digital cable set- tops. NextLevel plans to include both the core SRS(R) 3D sound technology as well as SRS Labs' new virtual audio technology, TruSurround(TM), in products for introduction in late 1998. In anticipation of these new products, NextLevel and SRS Labs demonstrated the TruSurround technology last week in NextLevel's booth at the Western Cable Show in Anaheim, California. TruSurround, which is a Dolby Laboratories-certified virtual audio technology, creates a fully immersive sound image which seems to completely wrap around the listener's head. A cable set-top equipped with TruSurround allows cable subscribers to enjoy the latest movies in the most exciting, cinema quality 3D sound experience possible using their traditional two speaker television or stereo system. In fact, TruSurround works best by simply maintaining the normal parallel placement of the original two speakers. Since this technology does not require the two speakers to be "toed in" to point directly at the listener ("toeing" typically greatly reduces the soundstage produced by the speakers), TruSurround maintains a very broad sound image which can be enjoyed by anyone in the listening area-regardless of their seating position. By maintaining a broader soundstage, the Company's patented HRTF-based technology will preserve the spatial and ambient information of the virtual rear speakers even if the listener turns his head or is not sitting square to the audio source, a feature which TruSurround uniquely performs. Because TruSurround is backward compatible with stereo, the cable subscriber will enjoy this exciting 3D sound experience whether the movie is broadcast in stereo or surround sound. Dwight Sakuma, Director of Consumer Products and Services of NextLevel Systems, stated, "Our incorporation of SRS Labs' audio technologies into our digital set-top terminals shows our commitment to add more consumer features and thus more value to our products. We want to offer cable providers a unique set-top product that they can market to their customers in addition to marketing programming content. With the audio enhancement of SRS and TruSurround in addition to the great video picture that is possible through digital lines, consumers can now enjoy the best possible entertainment experience in their home." "We are very excited to be working with NextLevel Systems," said Stephen Sedmak, president of SRS Labs. "TruSurround and SRS 3D Sound are the perfect audio additions to NextLevel's digital products. We feel that the set-top market holds tremendous promise and we look forward to working closely with NextLevel to create a leadership position in the cable industry."