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QSound's 3D Audio Technologies Taken to New Heights with Release of New Sound Card and Two Semiconductor Design Wins; Aztech Launches New PCI Sound Card

LAS VEGAS, NEVADA--

VLSI and Trident Release Feature-Rich PCI Audio Chips with New Q3D 2.0

COMDEX Fall '98 - QSound Labs, Inc. (NASDAQ: QSNDF - news) today announced that Aztech Systems Ltd. (SESDAQ: AZTECH) unveiled its new PCI-based sound card and VLSI Technology, Inc. (NASDAQ: VLSI - news) and Trident Microsystems (NASDAQ: TRID - news) launched new PCI-based chipsets, further strengthening QSound's position as the 3D audio leader in the PC/multimedia marketplace.

Aztech Systems Ltd., a global leader in the multimedia industry, takes gaming entertainment to new heights with the release of its PCI 368DSP sound card incorporated with Q3D™ 2.0, QSound Multi-Speaker System™ (QMSS™), and QXpander™. The new
sound card supports Environmental Audio Extensions™ (EAX™) by Creative Labs (NASDAQ: CREAF - news) and delivers unparalleled performance with the most compelling music synthesis and interactive audio technology. With the addition of the PCI 368DSP sound
card, Aztech now offers a complete range of cost-effective PCI cards specially designed to facilitate the industry's transition to the PCI bus. Visit the Aztech Booth S4006 located at the Sands Exposition and Convention Center.

Building on the success of the previously released 4DWave-DX™ PCI audio controller, Trident launched the second generation 4DWave-NX™. The new chip implements Q3D 2.0 with QSound Environmental Modeling™, which is EAX-compatible, and provides a balanced combination of features and performance at a cost-effective price point. Visit Trident's Booth S2050 for product demonstrations.

VLSI is adding the new ThunderBird Q3D chip to its ThunderBird PCI™ audio IC family. Positioned at the high-end of the PC audio market, the new chip implements the Q3D 2.0 technology as well as QMSS and QSurround™ algorithms and is the first indep endent solution for EAX by Creative Labs. The new chip can generate four-channel playback from conventional stereo CDs and MIDI sources and is expected to be implemented on up to 50 best-selling game titles by the end of the year. The ThunderBird Q3D c hip is currently sampling to customers with production scheduled for the first quarter of 1999. Visit the VLSI suite at the Courtyard Marriott for product demonstrations.

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 ente rtainment, 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 obta ined 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 financia l 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 f orward-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 technologie s, 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 periodi c 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 resul ts 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.