QSound Headphone Technology Featured In Cirrus Logic's Popular Maverick Processor Line

Business Wire, March 20, 2001

Business/Technology Editors

CALGARY, Alberta--(BUSINESS WIRE)--March 20, 2001

New Licensing Agreement Provides MP3, PDA, Digital Car Audio,

Internet Jukebox and Portable eBook Manufacturers the Ability to

Incorporate QSound's Headphone Technology Into Their Products

QSound Labs, Inc. (Nasdaq:QSND), a prominent supplier of audio software solutions today announced that Cirrus Logic, Inc. (NASDAQ: CRUS) has included QSound's headphone enhancement technology in its Maverick line of embedded processors.

Maverick semiconductors became the leading Internet audio chips in 2000 and run a wide variety of Internet entertainment devices including Personal Digital Assistants (PDAs), Internet TVs, eBooks, network-based home audio players, digital car audio players and portable Internet audio players.

OEMs licensing this feature will also have the ability to offer QMax(TM), QSound's latest Internet audio effects software to their customers. QMax is a universal, stand-alone software application, based on QHD(TM); QSound's "High Definition Audio for the Internet". QHD is an industry-leading suite of audio tools, designed specifically to enhance and improve Internet audio and most notably incorporated into iQfx(TM)2 for Real Networks' RealPlayer(R) & RealPlayer Plus(R).

"Because of our leadership position in Internet audio, customers have come to expect audio innovations from Maverick chips," said Matthew Perry, Vice President and General Manager of Cirrus Logic's Embedded Processors Division. "QSound Labs' headphone enhancement technology gives us yet another way to improve audio and fulfil the Maverick technology promise."

"This agreement with Cirrus Logic will allow OEMs to offer enhanced audio, even for low-end headphones, to their customers," stated David Gallagher, QSound's President and CEO. "Maverick's comprehensive feature set combined with strong market growth for Internet devices makes this an exciting opportunity for QSound Labs."

Cirrus Maverick processors have quickly become a force in the portable Internet audio marketplace selling over a million chips within the first six months of their introduction in March of 2000. Industry leading products currently using the Maverick processor include SONICblue's Rio(TM) 600, 800 and Volt(TM), Creative's Nomad(R) II, Nomad II MG and Nomad Jukebox, Compaq's iPaq(TM), Intel's Pocket Concert(TM), Nike's PSA Play, Dell's(TM) Digital Audio Receiver, AudioShock's (TM) Virtual jukebox and eHome's Internet TV.

About Cirrus Logic

Cirrus Logic is a premier supplier of high-performance analog and DSP chip solutions for Internet entertainment electronics. Building on its global market share leadership in audio integrated circuits and its rich mixed-signal patent portfolio, the company targets high-volume audio, storage and communications applications. Cirrus Logic sells its products under the Crystal(R), Maverick(TM) and 3Ci(TM) brands as well as its own name. Founded in 1984 in Silicon Valley, Cirrus Logic operates from headquarters in Austin, Texas and major sites located in Fremont, California and Broomfield, Colorado as well as offices in Europe, Japan and Asia. More information about Cirrus Logic is available at www.cirrus.com.

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, PC/multimedia, 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.

This release contains forward-looking statements within the meaning of the Private Securities Litigation Act of 1995 concerning, among other things, marketing of, and opportunities for, the Company's products, and future financial results. 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, consumer acceptance of the Company's products, dependence on the performance of third parties who have licensed or agreed to market the Company's technologies, dependence on intellectual property, uncertainties relating to product development and commercial introduction, rapid technological change and competition, continued growth of the Internet, 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.