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iQfx is one of the first third-party plug-ins to be integrated into the RealPlayer G2, making it easier than ever for RealPlayer users to enjoy a dramatically enhanced audio experience over the Internet. Based on QSound's first Internet software product iQ™, the innovative iQfx converts mono signals to stereo and stereo to 3D, adding rich, immersive audio to the already powerful RealPlayer G2.

``We've had a great deal of success offering the iQ software as a separate download option for our RealPlayer Plus customers,'' said Maria Cantwell, senior vice president of Consumer and E-Commerce Division, RealNetworks, Inc. ``Offering the new and improved iQfx as an integrated feature of the RealPlayer G2 provides our users with immediate and easy access to a state-of-the-art 3D audio experience over the Internet. iQfx will automatically download into the RealPlayer G2 application and integrate directly into the user interface.''

``We're very pleased to offer iQfx as an integrated feature of the RealPlayer G2,'' said Bob McLauchlan, Director of Marketing for QSound Labs. ``Together, QSound Labs and RealNetworks are breaking new ground by constantly striving to deliver new and innovative technologies to the Internet marketplace. This timely release will also enable QSound Labs to take advantage of RealNetworks' recent distribution relationships with AOL and Netscape.''

iQfx is one of the first third-party implementations of the ``RealPlayer Add-in'' (RPA) architecture of RealSystem™ G2. Details on RealNetworks RPA Program are available on RealNetworks Web site at http://www.real.com/company/rpa/.

iQfx made its debut as a stand alone product at Fall Internet World in New York October 7-9, 1998. The RealPlayer G2 final shipping release, also announced today, is available for immediate download at http://www.real.com. iQfx is now available for purchase at http://www.realstore.com/specials/iqfx/index.html.

Currently, more than 85% of all Web pages on the Internet using streaming media use industry leading RealAudio®, RealVideo® or RealFlash™ and more than 300,000 hours of live RealAudio and RealVideo programming are available each week. The RealPlayer, with more than 38 million registered users, is one of the most popular software applications used on the Internet.

About RealNetworks

RealNetworks, Inc. (Nasdaq: RNWK - news), based in Seattle, is the recognized leader in the streaming media market. It develops and markets software products and services designed to enable users of personal computers and other consumer electronic devices to send and receive audio, video and other multimedia services using the Web. RealNetworks can be found on the World Wide Web at www.real.com.

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.

RealSystem, RealPlayer, RealPlayer Plus, RealAudio, and RealVideo are trademarks or registered trademarks of RealNetworks, Inc. RealFlash is a trademark of Macromedia, Inc. and RealNetworks, Inc. Macromedia and Flash are registered trademarks of Macromedia, Inc. 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.

Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. Investors are cautioned that such forward-looking statements involve risk and uncertainties, which could significantly impact the actual results, performance or achievements of the Company, or industry results. Such risks and uncertainties include, but are not limited to, risks associated with the commercialization of 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.

SOURCE: RealNetworks