QSound Labs and RealNetworks Bring Leading Edge 3D Audio Technology to the Next Generation RealSystem G2; iQfx Now Available as an Advanced Feature of New RealPlayer G2

Business Wire, Nov 23, 1998

CALGARY, Alberta and SEATTLE, Wash.--(BUSINESS WIRE)--Nov. 23, 1998--QSound Labs, Inc. (Nasdaq:QSNDF), the world's leading 3D audio company, and RealNetworks, Inc. (Nasdaq:RNWK), the recognized leader in streaming media, today announced the release of iQfx(TM), QSound's new 3D streaming Internet audio solution. When installed, iQfx integrates seamlessly within the RealPlayer(R) G2 and RealPlayer Plus(TM) G2 and can be launched directly from the player itself. iQfx is available immediately and can be purchased from https://realstore.real.com/specials/iqfx/.> iQfx is one of the first "third party" plug-ins to be integrated into the RealPlayer G2, making it easier than ever for RealPlayer users to enjoy a dramatically enhanced audio experience over the Internet. Based on QSound's first Internet software product iQ(TM), the innovative iQfx converts mono signals to stereo and stereo to 3D, adding rich, immersive audio to the already powerful RealPlayer G2.

"We've had a great deal of success offering the iQ software as a separate download option for our RealPlayer Plus customers," said Maria Cantwell, senior vice president of Consumer and E-Commerce Division, RealNetworks, Inc. "Offering iQfx as an integrated feature of the RealPlayer G2 provides our users with immediate and easy access to a state-of-the-art 3D audio experience over the Internet. iQfx will automatically download into the RealPlayer G2 application and integrate directly into the user interface."

"We're very pleased to offer iQfx as an integrated feature of the RealPlayer G2," said Bob McLauchlan, Director of Marketing for QSound Labs. "Together, QSound Labs and RealNetworks are breaking new ground by constantly striving to deliver new and innovative technologies to the Internet marketplace. This timely release will also enable QSound Labs to take advantage of RealNetworks' extended reach on the heels of their exciting new relationships with AOL(R) and Netscape(R)."

iQfx is one of the first third-party implementations of the "RealPlayer Add-in" (RPA) architecture of RealSystem(TM) G2. Details on RealNetworks RPA Program are available on RealNetworks Web site at http://www.real.com/company/rpa/.> iQfx made its debut as a stand-alone product at Fall Internet World in New York October 7-9, 1998. The RealPlayer G2 final shipping release, also announced today, is available for immediate download at http://www.real.com.

Currently, more than 85 percent of all Web pages on the Internet using streaming media use industry leading RealAudio(R), RealVideo(R) or RealFlash(TM) and more than 300,000 hours of live RealAudio and RealVideo programming are available each week. The RealPlayer, with more than 37 million registered users, is one of the most popular software applications used on the Internet.

About QSound Labs, Inc.

Founded in 1988, QSound Labs, Inc. (Nasdaq:QSNDF), is an advanced audio technology company specializing in 3D sound placement and audio image enhancement. Based in Calgary, Alberta, the company uses patented 3D audio technologies to serve the home entertainment, PC/Multimedia, consumer electronics and professional audio industries. The technologies provide immersive, realistic sound environments that include positional audio, stereo enhancement and virtual surround sound.

About RealNetworks

RealNetworks, Inc. (Nasdaq:RNWK), based in Seattle, is the recognized leader in the streaming media market. It develops and markets software products and services designed to enable users of personal computers and other consumer electronic devices to send and receive audio, video and other multimedia services using the Web. RealNetworks can be found on the World Wide Web at www.real.com.

RealPlayer, RealPlayer Plus, RealAudio, and RealVideo are trademarks or registered trademarks of RealNetworks, Inc. RealFlash is a trademark of Macromedia, Inc. and RealNetworks, Inc. Macromedia and Flash are registered trademarks of Macromedia, Inc. All product and brand names are trademarks and/or registered trademarks of their respective owners. Additional news releases may be obtained via the Internet at www.qsound.com/press0.htm or by calling the company directly at 403-291-2492.

This release contains forward-looking statements within the meaning of the Private Securities Litigation Act of 1995. 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, anticipated distribution of the Company's products, risks associated with the commercialization of the Company's technologies, dependence on the performance of third parties who have licensed the Company's technologies, dependence on intellectual property, uncertainties relating to product development and commercial introduction, rapid technological change and competition, manufacturing uncertainties and other risks 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.