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In addition, StreamMagic, Inc., which is currently in the process of being acquired by QSound, will be hosting an open house at their Los Angeles offices to demonstrate their technology to exhibitors and guests.

``Spring Internet World is a premier Internet industry event,'' states David Gallagher, President and Chief Executive Officer. ``It is the perfect venue for QSound and StreamMagic to showcase their individual technologies and the exciting potential for the future when the merger is complete later this quarter.''

About AudioPix Plus:

AudioPix Plus is an easy-to-use software application that puts the power of multimedia into the hands of everyone. By merging together leading Internet technologies, AudioPix Plus allows users to create personal multimedia slideshows for the home or office by easily combining MP3 music files with digital photos or images. Completed AudioPix Plus presentations, which are playable with either RealPlayer or Windows Media Player, can be emailed to anywhere in the world or used as dynamic content for web sites and business presentations. Further product information is available at http://www.audiopix.com.

About iQfx2:

iQfx2 is a new 3D audio software application for use with RealPlayer (G2+) and RealJukebox (V 2.0+). The software adds rich 3D stereo sound and improved audio quality to streaming Internet broadcasts and MP3 files - through both headphones and PC speakers. iQfx2 includes several product features that allow users to adjust audio output to preferred personal settings, including:

-- Qverb(TM): reverb feature that allows users to choose from 3

different listening environments

-- Qbass(TM): fully adjustable bass boost feature

-- Qxciter(TM): fully adjustable treble feature

-- Maximize MP3: option that automatically adjusts to deliver the

best possible MP3 listening experience

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 www.qsound.com.

This release contains forward-looking statements within the meaning of the Private Securities Litigation Act of 1995 concerning, among other things, future growth and profitability and including statements made by Mr. David Gallagher. 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, including availability of sufficient resources for the Company to do so timely and cost effectively, dependence on the performance of third parties who have agreed to market the Company's technologies, continued growth of the Internet, dependence on intellectual property, uncertainties relating to product development and commercial introduction, completion of the StreamMagic acquisition, market acceptance for StreamMagic's specialized services, system failures, virus and security vulnerability, rapid technological change and competition, 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