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Realistic Virtual Surround Sound Capabilities Enhance New Home Electronics

The 27`` television has been in production since October 2001, while the undercounter unit will begin production in early March 2002.

``We are very pleased to have QSurround incorporated into these product lines,'' said David Gallagher, President, CEO, QSound Labs. ``It's an honour to add Thomson to the list of industry leaders who utilize QSound's 3D audio technology in their consumer electronics.''

QSurround provides virtual surround sound for a variety of consumer electronic and PC/multimedia applications. QSurround's remarkable sonic rendering allows the enjoyment of surround-encoded material in a two-speaker environment by using 3D audio techniques to create ``virtual speakers'' in the room. QSurround's flexible processing adds value to any speaker configuration, giving the audio environment depth, dimension and specific effects tailored to each playback scenario. QSurround is currently available in DVD players from Sharp and AIWA, television sets from Sanyo and Toshiba, and in the critically acclaimed Acoustic Edge(TM) Sound card from Philips.

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 audio solutions that include virtual surround sound, positional audio and stereo enhancement for the consumer electronics, PC/multimedia, Internet and healthcare markets. The Company's cutting-edge audio technologies create rich 3D audio environments allowing consumers to enjoy stereo surround sound from two, four or 5.1 speaker systems. 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, introduction of new products. 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 dependence upon Thomson Multimedia's use of QSound technology, consumer acceptance of the Company's products, 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 intellectual property, rapid technological change and competition, 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.
     Investor Relations:
     Paula Murray, 954/796-8798
     Fax: 954/796-9312
     Email: paula.murray@qsound.com
                OR
     QSound Labs, Inc.
     Media Relations:
     Jody Alexander, 403/291-2492
     Fax: 403/250-1521
     Email: Jody.alexander@qsound.com