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Increased Presence in Consumer Electronics Arena Will Significantly Add to QSound's Brand Awareness

``Having three of the major consumer electronics companies choose our audio technology for their new television lines is an impressive achievement,'' said David Gallagher, president and CEO, QSound Labs. ``The introduction of these new television models, by such key players, will help to significantly increase consumer awareness of the QSound technology worldwide.''

``These agreements expand our existing relationships with Sharp and Sanyo, who have been integrating our 3D audio technology into their audio product lines since 1997, and launches an important new association with Toshiba,'' Mr. Gallagher continued.

The newest Sharp television model in the US is the 34N-WF5H Pure Flat TV. Providing dramatic surround sound capabilities, this remarkable 34`` unit is compatible with signals from virtually all current set-top boxes. Additional models of televisions, mini-component systems and DVD players from Sharp incorporating QSound are available in the US, Europe and Japan. Sanyo has a number of models available throughout Europe and in Japan. It's newest 28'' and 32`` models (CE-28WN1-B, CDE-32 WP4-B, CE-28WP4-B) are available in the United Kingdom while the new ''Dynamic Series`` of color TVs are available in Japan. Toshiba is offering 12 new models, in their 21D7 flat screen and 29D7 flat screen ''Bomba Quattro`` series, which features QSurround. These models are currently available in Singapore and Asia. All three manufacturers will add additional TV models next year.

ABOUT SANYO

Established in 1950, Sanyo Electric Co., Ltd. manufactures a broad range of electronic products. Sanyo is a true global family with more than 140 affiliated companies and subsidiaries and over 50,000 employees in more than 27 countries. For the 1999 fiscal year net sales were $18 billion on a consolidated basis.

ABOUT SHARP

Sharp was founded in 1912 in Japan and is a world leader in LCD technology, and a world-wide developer of core technologies that play an integral role in digital technology including optoelectronics, infrared and semiconductors and flash memory. The Company has more than 66,700 employees at 68 sales and marketing offices, manufacturing and distribution and research and development facilities in 30 countries around the world. For the 1998 fiscal year net sales were $13.7 billion.

ABOUT TOSHIBA

Toshiba is a world leader in high technology and is an integrated manufacturer of electrical and electronic products spanning a wide range of products including telecommunication, consumer electronics, medical electronics and electronic components. In over 124 years of operation, the Company has recorded numerous firsts and is the 8th largest integrated manufacturer of electric and electronic equipment. It has over 198,000 employees worldwide and has annual sales of over $40 billion on a consolidated basis.

ABOUT QSOUND LABS, INC.

Since its inception in 1988, QSound Labs, Inc. has evolved into one of the world's leading audio technology companies and an e-commerce solution provider. The Company has developed proprietary, patent-protected audio solutions that include virtual surround sound, positional audio and stereo enhancement for the consumer electronics, multimedia PC, Internet and healthcare markets. The Company's cutting-edge audio technologies create 3D audio environments, allowing consumers to enjoy stereo surround sound from just two speakers. For more information, visit our Web site at http://www.qsound.com.

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 Contact, 954/796-8798
     Email: paula.murray@qsound.com
     Website: www.qsound.com