Second Microsoft Title Adds to QSound Title Momentum-QSound Dominates 3D Audio Titles for PC and PlayStation

Business Wire, Oct 15, 1996

CALGARY, Alberta--(BUSINESS WIRE)--Oct. 15, 1996--QSound Labs, Inc. (TSE: QSL.) (NASDAQ: QSNDF) Building on its reputation as the 3D audio of choice for all platforms, QSound Labs and Microsoft Corporation, the world's leading personal computer software company have signed a second licensing agreement.

This agreement calls for the integration of QSound's patented 3D audio technology into a PC title currently under development with the working title "Manic Marbles".

As well, the newest QSound-enhanced Playstation title to hit the market place is the just-released MADDEN NFL 97 by EA Sports which features TV-style presentations, live commentary, NFL player rosters, and over 500 Madden designed plays.

Some of the other leading developers and publishers who have licensed QSound to date are Activision, Electronic Arts Europe, Fathom Pictures, Looking Glass Technologies, Microprose, Mindscape, Psygnosis, Overtime Sports and Virgin Interactive. There are over 30 QSound-enhanced titles available for all of the major home entertainment platforms and approximately another 20 currently under development.

QSound Labs' unique audio technology is setting the standard for 3D audio and is acknowledged by major developers and publishers as the best and most effective way to improve sound quality for the new generation of home video entertainment systems and PC platforms.

QSound Labs' efficient developer too, QMixer'95 (TM) is a high- performance 3D audio mixer for Windows 95 (R) that requires no special hardware in the end-users system to reproduce QSound's real-time interactive 3D audio effects. In addition to QMixer95, the Company can provide interactive 3D audio solutions for all other major platforms including; DOS, Windows 3.1, Sega Saturn (TM), Sony PlayStation (TM) and 3DO (TM).

Founded in 1975, Microsoft (NASDAQ: MSFT) is the worldwide leader in software for personal computers. The company offers a wide range of products and services for business and personal use, each designed with the mission of making it easier and more enjoyable for people to take advantage of the full power of personal computing.

Electronic Arts, headquartered in San Mateo, Calif., was founded in 1982. EA posted revenues of over $490 million of fiscal 1995. The company develops,publishes and distributes software worldwide for advanced entertainment systems such as the PlayStation (TM), Sega Saturn (TM), and 3DO (TM) Interactive Multiplayer (TM), as well as IBM (R)-compatible PC's, Macintosh (R) computers, and major dedicated video game systems. Electronics Arts markets its products worldwide under five brand names: EA SPORTS (TM), Electronic Arts Studio, Origin Systems Inc., Bullfrog Productions Ltd, and Jane's (R) Combat Simulations.

QSound Labs is a leading edge audio technology company specializing in virtual sound localization and enhancement. It is 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.

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