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QSound Launches www.QCommerce.com

Company's affiliateDirect(TM) Added To E-Commerce Software Offerings Online

QSound Labs, Inc. (NASDAQ: QSND - news), an e-commerce software development company and a leading supplier of digital audio solutions, today announced it has launched QCommerce.com, the portal site for QCommerce Inc.'s products and member services. The site enables QCommerce to be a one-stop shop for businesses looking to establish a fully functional commercial presence on the Internet. Through this site, QCommerce will market its affiliateDirect line of marketing tools and services directly to online merchants. The Company's full product line can be found at the QCommerce website, located at http://www.qcommerce.com/.

QCommerce was formed in August following the Company's acquisition of privately held Virtual Spin, Inc., a pioneer in e-commerce development. With the integration of Virtual Spin and its flagship product, Internet Store(TM), the QSound subsidiary operates as an e-commerce enabler through its offering of online tools and solutions for small- to medium-sized businesses. The Company's end-to-end business solutions provide customers with the ability to rapidly and cost-effectively establish a complete e-commerce infrastructure and presence. There are currently over 2200 online merchants using Internet Store.

David Gallagher, President and Chief Executive Officer of QSound Labs, said, ``We are pleased to announce the launch of QCommerce.com, our virtual interface with the e-commerce world. We look forward to QCommerce's contribution to the Company's ability to achieve near-term profitability. Based on the initial response to our affiliateDirect program, we believe that QCommerce is already well-positioned to capitalize on the growing number of small- and medium-size businesses seeking to establish themselves online.'' Mr. Gallagher continued, ``As with each of our business segments, we plan to focus on providing the most advanced technologies and will utilize strategic partnerships to market our product offerings to end users.''

QCommerce offers an array of virtual storefront software and secure back-end technologies designed to provide retailers with quick, complete and affordable options to pursue e-commerce opportunities. affiliateDirect, a robust and sophisticated marketing tool, enables merchants to develop and manage their own branded affiliate program designed to drive customer traffic to their sites. With Internet Store, non-technical users can instantly create, publish and manage high quality, secure, online purchasing infrastructures. Flexible packaging options allow customers to select an appropriate suite of integrated solutions specific to their business needs. Used together, affiliateDirect and Internet Store provide highly integrated, out-of-the-box solutions for establishing online stores and shopping portals. Internet Store was formerly available for download through www.virtualspin.com. Customers who visit the Virtual Spin site now will be directed to the QCommerce site.

About QCommerce, Inc.

QCommerce, Inc., a wholly owned subsidiary of QSound Labs, is an e-business services company dedicated to enabling small businesses to succeed in the growing online world. The QCommerce solutions are easy to use, secure and affordable, positioning QCommerce to take advantage of the rapidly expanding e-commerce marketplace. For more information, visit our website at http://www.qcommerce.com./

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, patent-protected audio solutions that include virtual surround sound, positional audio and stereo enhancement for the consumer electronics, multimedia PC, Internet and healthcare markets. The Company's cutting-edge audio technologies create 3D audio environments, allowing consumers to enjoy stereo surround sound from just two speakers. 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, the anticipated introduction of new e-commerce products and services and future financial results, including statements and projections made by Mr. Gallagher regarding the foregoing, and regarding opportunities in e-commerce 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 Company's ability to carry out its business strategy and marketing plans for e-commerce, availability of sufficient resources for the Company to timely and cost effectively carry out the Company's business plans and strategies, dependence on the performance of third parties who have agreed to market the Company's technologies, dependence on intellectual property, uncertainties relating to product development and commercial introduction, rapid technological change and competition, continued growth of the Internet, general economic and business conditions and other risks which may be 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 Contact
Paula Murray
(954) 796-8798
paula.murray@qsound.com
http://www.qsound.com
or
The MWW Group
Public Relations
Laura L. Kieley
(212) 704-9727
lkieley@mww.com

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