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ORANGE COUNTY EARNINGS

SRS Labs Inc.

October 28, 1998

The Santa Ana provider of audio and voice technology products said net income for the third quarter fell to $191,510, or 2 cents a share, from $1.1 million, or 11 cents a share, for the third quarter of 1997. Revenue increased to $11.3 million from $2.5 million. The company said that because of an acquisition completed this year, its year-to-year results are not comparable.

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