ThunderBird 128 Q3D(TM) Audio Accelerator Selected to Power Flagship of XWave (TM) Extreme Gaming Sound Cards

QSound Labs, Inc. (NASDAQ: QSND - news) a leading supplier of digital and analog audio solutions, announced that Labway Corporation, one of the dominant manufacturers of multimedia products, will introduce the THUNDER3D (TM) PCI audio card, based on the ThunderBird 128 Q3D (TM) audio processor. This will be the first member of Labway's new XWave family of high performance PC sound products. The ThunderBird128 Q3D processor is supplied by VLSI Technology (NASDAQ: VLSI - news) and is the only solution that provides superior performance in 3D audio, multi-channel processing and hardware acceleration. The XwaveTHUNDER3D will be showcased at Computex, Asia's foremost Computer trade show, in June.

QSound's 3DInteractive (TM)(Q3DI) technology is an integral part of the ThunderBird and provides advanced positional audio in real- time. Its unique 2D to 3D positional re-mapping technology also allows 2D audio applications to be played in full positional 3D. The advantage of Q3DI is that it lets gamers enjoy a complete 3D audio solution for all their favourite games - old or new. The 3D experience is further enhanced with QSound Environmental Modeling for EAX (TM) game compatibility.

``It's exciting to see a major player like Labway with demonstrated success in the PC OEM and high volume card market jump in with a high performance brand name product'' said Scott McNeese, product marketing manager at VLSI. ``The branded audio card market needs some new blood and Labway's Thunder 3D is certainly equipped to draw some.''

``This design win is very significant,'' stated David Gallagher, President, CEO, QSound Labs ``the fact that ThunderBird has now been selected by the two largest independent card manufacturers in the world is a solid indication that the product provides the features and the quality that are most desirable in a sound card.''

About Labway Corporation

Established in 1994, Labway Corporation Ltd., has become one of the leading manufacturers of audio, video and diverse multimedia products and supplies product to many top-tier OEMs around the world. For more information, please visit Labway's homepage at www.labway.com.tw

About VLSI Technology, Inc.

VLSI Technology, Inc. designs and manufactures custom and semi- custom integrated circuits for leading firms in the wireless communications, networking, consumer digital entertainment and advanced computing markets. VLSI's value proposition is based on full-service customer support, deep libraries of vertical market- focused IC intellectual property, unparalleled custom circuit design, expertise enabled through the Velocity Rapid Silicon Prototyping design style, and one of the world's most flexible and efficient custom circuit manufacturing facilities in San Antonio, Texas. The Company is based in San Jose, California with 1998 revenues from continuing operations of $547.8 million, and approximately 2,200 employees worldwide. For more information visit VLSI's homepage at www.vlsi.com.

About QSound Labs, Inc.

Founded in 1988, Calgary-based QSound Labs, Inc. (NASDAQ: QSND - news), is a technology company specializing in software audio applications for the Internet, PC/multimedia, Consumer Electronics and Healthcare industries. Its patented technologies provide these industries with immersive, realistic sound environments that include positional audio, stereo enhancement and virtual surround sound solutions. A key contributing factor to the success of QSound's Internet software audio products has been the development of a unique enabling technology,(QAP),a turnkey solution for the marketing and sales of any product via the Internet. For more information, visit our Web site at 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 and 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 commercialization of the Company's technologies, dependence on the performance of third parties who have licensed the Company's technologies, dependence on intellectual property, uncertainties relating to product development and commercial introduction, rapid technological change and competition, manufacturing uncertainties and other risks 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
(954) 796-8798
(954) 796-9312
paula.murray@qsound.com
http://www.qsound.com