SLS International Announces Dismissal of Lawsuit

25 October 2006

SLS International, Inc. (Amex: SLS) today announced that a dismissal has been entered by the Los Angeles Superior Court with regards to a lawsuit that had been filed against SLS and other parties by Jimmy Iovine and Andre Young. The lawsuit claimed that SLS had breached an oral contract relating to the design and promotion of certain patent pending headphone technology owned by SLS International. SLS was the only defendant dismissed from the lawsuit. The dismissal was entered without prejudice.

"This dismissal was expected to be imminent for some time," said John Gott, CEO of SLS International, "as we felt it was apparent that SLS had no involvement in any negotiations with the plaintiffs and the other defendants in this case. SLS has had a pending license agreement with a third party, DGM Audio, and otherwise did not have any pending agreements or arrangements with the other defendants or plaintiffs in this case. We still think we should not have been named as a defendant in this case in the first place. This dismissal will allow us to move forward with other possible licensing agreements for our patent pending noise canceling headphone technology and other patented products."

About SLS

Based in Ozark, Mo., SLS International, Inc. is a 30-year-old manufacturer and developer of new proprietary patent-pending ultra-high fidelity Ribbon Driver loudspeakers, patented Evenstar Digital Amplifiers and sound systems for the commercial, home entertainment, professional and music markets. SLS has perfected the ribbon-driver technology enabling their loudspeakers to achieve exceptional inner detail and accuracy with 20% to 30% less distortion of typical compression driver and dome tweeters. SLS speakers and systems are used in high-profile venues such as NBC/MSNBC's 2002 and 2004 Olympics studios, the Recording Academy's Grammy Producers SoundTable events, and for the NAMM winter show, providing sound in the AVID Technology booth just to name a few. For more information, visit http://www.slsaudio.com.

Safe Harbor

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Source: prnewswire

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