Yamaha first licensee of QSound Labs' newest 3D positional audio technology, QSOFT3D ™-agreement strengthens alliance between QSound and Yamaha

Business Wire, April 16, 1997

CALGARY, Alberta--(BUSINESS WIRE)--April 16, 1997--QSound Labs, Inc.(NASDAQ:QSNDF.) Yamaha has become the first licensee for QSound Labs' new 3D positional audio renderer, QSoft3D. Yamaha plans to incorporate QSoft3D in a codec driver that is expected to enter the marketplace later this year. The new product is designed to provide the next generation of multimedia home computers with positional 3D audio without the CPU overhead requirements of other solutions. The new agreement also strengthens the partnership between QSound and Yamaha, which began in 1995.

Designed to provide high-quality, efficient, cost-effective 3D positional audio, QSoft3D is fully optimized for use on Pentium and MMX Pentium processors. QSound Labs' new 3D rendering engine is fully compatible with Microsoft's DirectSound(TM). Designed with the proprietary QSound(R) algorithm, QSoft3D accelerates 3D audio processing up to 1000 percent over DirectSound3D(TM), thus eliminating the need for hardware acceleration. By drastically reducing the amount of CPU processing required for 3D audio, QSoft3D frees the CPU for other concurrent tasks such as 3D graphics, resulting in overall increased system performance.

"QSound Labs is very pleased to have Yamaha, with its long standing-commitment to superior sound quality, as the first licensee of QSoft3D," stated David Gallagher, president of QSound Labs. "In order to compete with consumer products, PC's need better audio. QSoft3D simultaneously provides quality, efficiency and is therefore cost-effective for Yamaha's OEMs."

Yamaha Systems Technology, Inc. (YST), is a subsidiary of Yamaha Corporation of Japan. YST develops Yamaha's line of integrated circuits, boards and systems including custom and semi-custom ASIC, audio, graphics and communications integrated circuits. These products are used in a variety of consumer electronics, personal computers, audio/video recording/playback equipment, multimedia systems, and data storage products. YST primarily serves original equipment manufacturers.

Based in Calgary, Alberta, QSound Labs, Inc. (NASDAQ:QSNDF.) serves the home entertainment, PC/multimedia, consumer electronics and professional audio industries. The company's patented 3D audio technologies provide immersive, realistic 3D environments and include specific sound placement, stereo enhancement and surround sound solutions. Visit the company's Website http://www.qsound.ca for more information about the company or its technology.

QSound Labs' customers include video game publishers Capcom, Electronic Arts, Fathom Pictures, Microsoft, Microprose, Mindscape, Overtime Sports and Sega: PC/multimedia companies Acer, AIWA, CompCore, Crystal Semiconductor, IBM, OPTi, Samsung, Siemens Nixdorf and Yamaha and professional audio artists Bryan Adams, Janet Jackson, Madonna, Sting, Paula Abdul, and Roger Waters as well as West Productions: (The X-Files, Millennium and The Wonder Years).

CONTACT: QSound Labs, Inc.

Christine Anderson, 403/291-2492

cca@qsound.com

or

The Bohle Company

Pam Swartwood, 310/785-0515

pswart@bohle.com

Scott Robertson, 310/785-0515

scott@bohle.com