FREMONT, Calif.--(BUSINESS WIRE)--May 5, 1999--Labway USA Corporation - Labway Corporation proudly announces Xwave THUNDER 3D, the fastest and most advanced gamer audio PCI card yet. The Xwave THUNDER 3D is the first in the series of the Xwave line of high performance audio cards. Xwave Thunder 3D utilizes the new VLSI ThunderBird128 Q3D(TM) audio processor that incorporates QSound Labs' Q3DInteractive(TM) (Q3DI) positional audio technology to provide true hardware acceleration, 'no nonsense' 3D positioning for 2 or 4 speaker output and uncompromised game compatibility.

``This design win, by Labway, one of the world's largest independent card manufacturer, is a significant endorsement of the Thunderbird's features and quality,'' said David Gallagher, President, CEO of QSound Labs. ``Labway's Thunder3D fully exploits the rich feature set of the ThunderBird Q3D including QSound's 3D Interactive technology providing a product that will be a true gamers paradise.''

TECHNOLOGY

The technology underlying the Thunder 3D is based on modern research of the human brain's processing of audio spatial information. The advanced on-board Digital Signal Processor (DSP) is then able to create a rich 3D audio environment with the illusion of sounds all around the user using a conventional pair of speakers or headphones. Although other audio cards and multimedia software packages are able to create similar 3D audio special effects, most also require significant system resources that often exceed processing power offered by even the most advanced PCs. This excessive taxing on host Central Processing Unit (CPU) has generated demand for audio accelerator cards that relieve a machine's CPU of sound processing duties and provide a much richer audio experience. The Xwave THUNDER 3D is the culmination of years of research to design an advanced audio accelerator that processes clear and complex 3D audio, while leaving the rest of the system alone to crunch the latest games and multimedia applications.

COMPATIBILITY

Thunder 3D offers the broadest 3D game support of any audio card on the market. Not only is Thunder 3D compatible with DirectSound3D applications and those using EAX(TM) extensions or A3D(TM) 1.0, it also uses it's unique 2D-to-3D re-mapping and QMSS(TM) Stereo to Quad conversion to transform ordinary 2D and stereo applications into 3D and quad applications. Only Thunder 3D can envelop you in 3D sound ROM the latest 3D title, your old favorite 2D game as well as music from CD's, MP3, MIDI files and movie soundtracks.

THUNDER 3D TECHNICAL OVERVIEW

Key features of the Xwave THUNDER 3D include concurrent processing of up to 320 audio streams including up to 64 3D streams, 128 Direct Sound streams, and up to 64 h/w DirectSound/music synthesis voices and up to 256 host music synthesis voices. Thunder 3D also provides unique hardware accelerated Q3D Interactive (Q3DI) positional audio by QSound Labs, Yamaha XG Wavetable Synthesis, QSound Environmental Modeling(TM), and QSound Multi-Speaker System to deliver quadraphonic sound from games, movies and music.

While Labway engineers look to the future to provide cutting edge technology, they have not neglected backward compatibility. Sound Blaster Pro compatibility with 3 modes of operation ensures that your audio will come through crystal clear even when utilizing a Windows DOS box and real mode DOS. For those who just can't get enough of that 1970's FM (Frequency Modulation) synth sound, Xwave THUNDER 3D also fully supports OPL-3 emulation.

HARDWARE ACCELERATION

The ThunderBird128 Q3D employs a hardware processor to handle digital audio and synthesizer functions right on the board.

What does all this mean? Xwave THUNDER 3D handles what it knows best - Audio - and leaves the rest of your system alone to perform other functions. The result is smoother gameplay, higher video frame rates, higher audio quality and higher system benchmarks.

SEAMLESS UPGRADABILITY

Add-ons or upgrade technology can be easily added in the form of a Waveblaster style header that allows easy connection of an additional expansion-card to the baseboard.

AVAILABILITY

The Xwave THUNDER 3D will be showcased at Computex, Asia's foremost Computer trade show, in June. Xwave THUNDER 3D will be available in OEM configuration in June of 1999. The full retail version of Xwave THUNDER 3D will ship in July. Labway anticipates a $99.00 MSRP USD for the full retail version.

ABOUT VLSI TECHNOLOGY, INC.

VLSI Technology, Inc. (Nasdaq:VLSI - news) 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 the VLSI homepage, 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.

ABOUT LABWAY CORPORATION

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

For an electronic version of this press release or additional technical information, please contact dennisj@avmtechnology.com. This announcement relates to products whose launches are in the United States of America. The product names, contents, prices and availability may differ elsewhere in the world according to local factors and requirements. Xwave and Thunder 3D are registered trademarks of Labway Corporation. All other products mentioned herein are trademarks of their respective owners and are hereby recognized as such.

Contact:

     AVM Technology, Inc. - a division of Labway Corporation
     Dennis Jenn, 801/571-0967
     801/571-3634  (FAX)
     dennisj@avmtechnology.com
     http://www.labway.com