SRS Labs, Inc.
Proposed Ticker: SRSL 2909 Daimler Street
Exchange: NASDAQ-National Market Santa Ana, California 92705
Industry: Manufacturing (714) 442-1070

All share information is proposed
Type of Shares:Common Shares Filing Date:6/3/96
U.S. Shares Filed:3,100,000 Filing Range:$10.00 - $12.00
Non-U.S. Shares Filed:0 Offering Amount: $34,100,000
Primary Shares:3,100,000 Expenses:$800,000
Secondary Shares:0 Shs Out After:9,461,096

ManagerTierPhone
Salomon Brothers Inc.Lead Manager (212) 783-2947
Cruttenden & Company, Inc.Co-manager (714) 757-5700
Montgomery SecuritiesCo-manager 4156272220

Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 6/30/96 6/30/95 6/30/96
Revenue:$0.82$2.10$0.33Assets:$2.75
Net Income:-$1.64$0.51-$0.82Liabilities:$1.15
EPS:-$0.27$0.07-$0.14Equity:$1.60

Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year,
unaudited figures are partial year

Business Description
The company develops and markets and licenses patented audio technologies for use in five worldwide markets; consumer home audio; computer multimedia; car audio; professional sound and video arcade games. The Company licenses its flagship technology, SRS, the Sound Retrieval System, to leading original equipment manufacturers such as Apple, Kenwood, NEC, Packard Bell, Pioneer, Sharp, Sony, and Thomson Consumer Electronics (RCA). SRS creates and immersive three-dimensional sound image from any audio source with as few as two conventional stereo speakers. The technology is based on the fundamentals of the human hearing system and recreates the multitude of spatial cues that are present in a live listening environment but are lost in recording and playback. SRS can be easily and inexpensively incorporated by OEMs into manufacture of a wide variety of audio-related consumer products such as TVs, computers, stereo receivers, VCRs, car radios, video games and musical instruments. The technology can also be encode onto CDs, casettes or video tapes during the recording process and reproduced through a conventional stereo system, multimedia computer, radio or television broadcast, or the Internet.

Use of Proceeds
The proceeds from the proposed offering will be used for working capital requirements and for general corporate purposes, including funding and development of new technologies through acquisitions or internal research and development, sales and marketing.

Last updated: 10/28/96

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