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Toshiba Inc. has also integrated QHD into its RD-XS41 DVD Recorder, which premiered in Japan last month. QSound's QHD enhancement library is ideally suited for the DVD entertainment platform since it applies 3D audio processing to not only DVD content, but to CDs and MP3 files as well.

"QSound's technology is a value-added feature for our new line of DVD Recorders," said Stokely Marco, Director Product Planning of Digital A/V Group, Toshiba America Consumer Products Inc. "Today's consumers are more demanding. Higher quality audio is a sought after feature and QSound delivers by providing a richer, more immersive, listening experience sure to please the most discerning consumer."

"It is very gratifying that Toshiba has again chosen QSound to enhance one of its product lines, said David Gallagher, President and CEO, QSound Labs, Inc. "Recordable DVDs are the wave of the future and QSound is pleased to be part of that future with a formidable partner like Toshiba."

About Toshiba America Consumer Products

Toshiba America Consumer Products, L.L.C. is an independent operating company, owned by Toshiba America, Inc., a subsidiary of Toshiba Corporation, a world leader in high technology products with subsidiaries worldwide. Toshiba America Consumer Products is a pioneer in DVD technology and a leading manufacturer of a full line of home entertainment products, including televisions, home theater projectors, combination products and portable devices. Toshiba America Consumer Products is headquartered in Wayne, New Jersey with production facilities in Lebanon, Tennessee.

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. To hear 3D audio demos and learn more about QSound, 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 Toshiba products that use the Company's technologies. 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 consumer acceptance of the new products, dependence on Toshiba's marketing and distribution of the new products, dependence on intellectual property, rapid technological change and competition, general business and economic conditions 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:

     For More Information, Please Contact:
          Investor Relations
     Paula Murray
     Phone: (954) 796-8798
     Fax: (954) 796-9312
     paula.murray@qsound.com
          Alejandro Arango
     Precipio Partners,
     a Brodeur Worldwide Company
     for Toshiba
     (617) 587-2034
     aarango@precipiopartners.com