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Fall Line-Up to Include Three New Products Designed to Enhance the Pc Multi Entertainment Experience

The new sound cards are Rhythmic Edge(TM), Seismic Edge(TM) and Acoustic Edge(TM). Several orders have been placed by major retail chains with Rhythmic Edge and Seismic Edge scheduled to launch in September 2000, at $49.99 and $79.99 respectively and the Acoustic Edge to launch in November 2000 for $99.99. All three soundcards utilize QSound Labs' patented technology in conjunction with Philips' ThunderBird Digital Signal Processors.

``The introduction of these sound cards into the retail marketplace is an important milestone for the ThunderBird project,'' said David Gallagher, President, CEO, QSound Labs. ``By leveraging Philips' strength and reputation in consumer audio, the Edge product line should provide a solid foundation for growth.''

Acoustic Edge(TM) is the industry's first PCI audio accelerator enabling 5.1-channel playback of games, music and movies. Using QSound's unique algorithms any game or other interactive application can now also be experienced in a theater-like environment surrounding the player in 5.1 channels of sound effects and music with the Acoustic Edge. The sound card's comprehensive analog and digital connections allow users to connect to a variety of consumer entertainment equipment, such as a DVD players, CD/CDR decks and personal TV/VCRs. This enables users to transform the output of these devices into 5.1 channels.

Powered by the ThunderBird Q3D(TM) DSP, the Seismic Edge surrounds users with true quadraphonic playback of any game, music and movie - even simple two-channel sources deliver high impact 3-D sound using two, three or four speakers.

Ideally suited for stereo speakers, the Rhythmic Edge offers rich 3D enhancement of flat 2D games, music & movies. Rhythmic Edge creates concert hall 3D realism from just two speakers with QSound's 3D interactive and extreme hardware acceleration also using the ThunderBird Q3D DSP.

ABOUT PHILIPS

Royal Philips Electronics of the Netherlands is one of the world's biggest electronics companies and Europe's largest, with sales of $33.5 billion (EUR 31.5 billion) in 1999. It is a global leader in color television sets, one-chip TV products, color picture tubes for televisions and monitors, lighting and electric shavers. Its 226,900 employees in more than 60 countries are active in the areas of consumer electronics, components, semiconductors, lighting, domestic appliances, medical systems, and IT services (Origin).Philips is quoted on the NYSE (symbol: PHG), London, Frankfurt, Amsterdam and other stock exchanges. News from Philips is located at www.news.philips.com

ABOUT QSOUND LABS, INC.

QSound Labs, Inc., founded in 1988, is a world leader in audio technology, multimedia software, Internet audio and e-commerce solutions. Utilizing its proprietary patented technology, the Company has developed audio solutions for virtual surround sound, positional audio, stereo enhancement and the Company's area of specialty - 3D audio. QSound's cutting-edge 3D audio technology allows consumers to enjoy high quality, realistic three-dimensional stereo surround sound in a number of applications with just two speakers. In recent years, QSound has leveraged its extensive Internet marketing expertise by also providing e-commerce solutions and complimentary multimedia software applications. The Company's various technologies are incorporated into many products in the consumer electronics, multimedia PC, Internet, entertainment and healthcare markets. Visit the QSound Labs web site at www.qsound.com for more information.

This release contains forward-looking statements within the meaning of the Private Securities Litigation Act of 1995 concerning, among other things, the anticipated introduction of new products, projected shipment dates of products and future financial results. Investors are cautioned that such forward-looking statements involve risk and uncertainties, which could cause actual results, performance or achievements of the Company, or industry results to differ materially from those reflected in the forward-looking statements. Such risks and uncertainties include, but are not limited to, risks associated with the Company's ability to carry out its business strategy and marketing plans, including availability of sufficient resources for the Company to do so timely and cost effectively, dependence on the performance of third parties who have licensed or agreed to market the Company's technologies, manufacturing uncertainties, dependence on intellectual property, uncertainties relating to product development and commercial introduction, rapid technological change and competition, and other risks which may be detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission. Forward-looking statements are based on the current expectations, projections and opinions of the Company's management, and the Company undertakes no obligation to publicly release the results of any revisions to such forward-looking statements which may be made, for example to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Contact:

     QSound Labs, Inc.
     Paula Murray, Investor, 954/ 796-8798
     E-mail: paula.murray@qsound.com
     Website: www.qsound.com