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New Q3D 2.0, QMSS and QSurround Technology for Headphones Takes 3D Audio to New Levels

LAS VEGAS, Nev.--(BUSINESS WIRE)--Nov. 13, 1998--QSound Labs, Inc. (NASDAQ:QSNDF - news) COMDEX Fall '98 - QSound Labs, Inc. (NASDAQ:QSNDF - news), a leading provider of 3D audio, is set to release three next generation 3D audio technologies during this year's COMDEX. Q3D 2.0™, QSound Multi-Speaker System™ (QMSS™), and QSurround™ for headphones will make their debut into the marketplace with pros at both the Treasure Island Hotel and Courtyard Marriott.

Q3D™ 2.0

Q3D 2.0 is the second-generation predecessor of the highly successful Q3D™ positional 3D audio rendering technology. Q3D was first introduced in 1991 and has been incorporated in many top-selling arcade, PC, and console games from leading developers. Building on the success of the original Q3D, Q3D 2.0 takes 3D audio to new levels by including several advanced features including QSound Environmental Modeling™ (QEM™) and multi-speaker playback. QEM, a reverberation engine compatible with the Environmental Audio Extensions™ (EAX™) API from Creative Labs (NASDAQ:CREAF - news), considers how sound interacts with environmental elements such as room acoustics, position of players and sound source. The well-supported Q3D 2.0 has been incorporated into new generation chipsets offered by industry leaders such as VLSI (NASDAQ: VLSI - news) and Trident (NASDAQ:TRID - news). Visit Trident's Booth No. S2050 for demonstrations of the 4DWave NX™ incorporated with Q3D 2.0.

QSound Multi-Speaker System™ (QMSS™)

The QMSS technology is a stereo-to-surround algorithm designed to create stunning surround-sound from ordinary stereo content such as CDs and stereo-based games. Unlike ordinary stereo surround systems that merely copy the stereo signal in the rear channels, the QMSS algorithm actually ``steers'' acoustic images to create a remarkably effective surround experience. QMSS has consumer application in car audio, home theatre and PC/multimedia products. The first implementation of QMSS will be featured in the ThunderBird™ PCI audio accelerator, currently marketed by VLSI. For demonstrations of this technology, visit the VLSI private suite at the Courtyard Marriott. QSurround™ for Headphones

QSurround for Headphones hits the marketplace on the heels of the already successful QSurround family of 3D audio processes designed to bridge the gap between the lure of multi-speaker sound systems and practical implementation. While DVDs, DVD Roms, Laser Disks, and future television broadcast formats will all be rendered in digital surround sound, consumers will not always choose to employ this option due to space limitations, budget issues, and simple practicality. By creating ``virtual speakers'' in a ``virtual room,'' QSurround reproduces the full surround sound effect of multi-channel audio so that surround-encoded movies and music can be enjoyed through a set of headphones. For demonstrations of the QSurround technology, visit the Zoran Booth No. M650.

About QSound Labs, Inc.

Founded in 1988, QSound Labs, Inc. (NASDAQ:QSNDF - news), is an advanced audio technology company specializing in 3D sound placement and audio image enhancement. Based in Calgary, Alberta, the company uses patented 3D audio technologies to serve the home entertainment, PC/Multimedia, consumer electronics and professional audio industries. The technologies provide immersive, realistic sound environments that include positional audio, stereo enhancement and virtual surround sound.

Environmental Audio Extensions (EAX) is a trademark of Creative Technologies Ltd. in the US and/or other countries. All product and brand names are trademarks and/or registered trademarks of their respective owners. Additional news releases may be obtained via the Internet at www.qsound.com/press0.htm or by calling the company directly at 403-291-2492.

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.

     Cathy Cochrane, 403/291-2492

     403/250-1521  (FAX)

     cathy.cochrane@qsound.com

     http://www.qsound.com

     or

     QSound Labs, Inc.

     Paula Murray, 954/796-8798

     954/796-9312  (FAX)

     paula.murray@qsound.com