Fourth Acer Affiliate to Incorporate QSound in Their PCs/QSound Labs Signs Taiwan Based Ambit Microsystems, Inc

Business Wire, Dec 12, 1996

CALGARY, ALBERTA--(BUSINESS WIRE)--Dec. 12, 1996-- QSound (TSE QSL., NASDAQ QSNDF.) Continuing to build on its strong relationship with Acer America, QSound Labs has licensed its QXpander(TM) technology to Ambit Microsystems, Inc. a Taiwan based Acer affiliate. The royalty-based licensing agreement will see QSound Labs' stereo enhancement technology incorporated within Ambit's computer line beginning immediately.

"QSound Labs is uniquely positioned to exploit the opportunity to become the standard for 3D audio," stated David Gallagher, President & CEO, "QSound Labs' unrivalled technology leadership provides its customers with a complete family of proprietary solutions for all applications. The continued adoption of QSound(R) technology by industry leaders such as Acer, IBM, Yamaha and Crystal Semiconductor, as well as leading Far East OEM's has produced significant revenue increases in the second half of this fiscal year and has provided a platform for growth as the 3D audio market evolves."

At the recent Fall Comdex Show the Company showcased its latest technology developments, QSurround and IQ. QSurround meets the challenge of any new multi-channel audio delivery format, enabling decoded Dolby or MPEG2 information to be effectively reproduced across the entire range of playback systems. QSurround's flexible processing adds value to any configuration. Even with full five or six-channel systems it adds depth and dimension with specific effects tailored to each playback scenario. QSurround is the ideal solution for the exploding DVD market. QSurround has been awarded Dolby Laboratories' certification for use with the Dolby Digital (AC-3) and Pro Logic processes.

IQ supports streaming audio plug-ins such as Real Audio (TM), Shockwave Audio (TM), and Xing StreamWorks (TM) for both Netscape (TM) and Microsoft Explorer (TM) browsers. Utilizing QSound Labs' QXpander (TM) stereo-to-surround technology, it provides 3D enhancement in real-time. IQ automatically detects mono content and applies mono-to-3D processing, thereby improving any source material. The product also works with any Windows playback, enhancing the sound of multimedia titles, wave files and even system sounds. IQ can be obtained directly from our web site, www.qsound.ca .

QSound Labs is a leading edge 3D audio technology company currently marketing its technology to the PC/multimedia, home entertainment and consumer electronics industries while developing superior 3D enhancements for future generations of audio products. The technology has been licensed by PC/multimedia, home entertainment and video arcade leaders Acer, Capcom, Crystal Semiconductor, Electronic Arts, Fathom Pictures, IBM, Intel, Microsoft, Microprose, Mindscape, NEC, Overtime Sports, Sega and Yamaha. Artists who have used QSound include Bryan Adams, Sting, Pink Floyd, Janet Jackson, Tom Cochrane, Paula Abdul, and Roger Waters. The popular TV series The X-Files is mixed in QSound and was recently awarded an Emmy for its outstanding sound quality.

CONTACT: QSound Labs, Inc.

Christine Anderson, 403/ 291-2492

INTERNET: http://www.qsound.ca