QSound Labs Introduces microQ Mobile Audio Engine Optimized for Intel'R' PXA27x Processors with Intel'R' Wireless MMX'TM' Technology

Business Wire, April 13, 2004

News Editors/Business Editors/High-Tech Writers

CALGARY, Alberta--(BUSINESS WIRE)--April 13, 2004

Multi-format Polyphonic MIDI Synthesis, 3D Audio for Headsets or

Narrow Geometry Speakers, and Audio Enhancement Algorithms running on

Intel PXA27x Processors.

Intel Developer Forum Taipei, Taiwan - QSound Labs, Inc. (NASDAQ: QSND), a leading developer of audio and voice over IP software solutions, today announced it's microQ audio engine for mobile phones and PDAs supports Intel(R) Wireless MMX(TM) technology for mobile devices based on the newly launched Intel(R) PXA27x processor family.

Intel Wireless MMX technology allows QSound's advanced audio processing algorithms to be supported using far fewer processor resources than before. The Intel Wireless MMX instruction set improves the performance of audio filtering and mixing functions by 2 to 3 times. Processor cycles previously consumed for audio processing are now available to other applications and functions on the device. This eliminates the need for specialized co-processors, reducing the cost of components and increasing the battery life of mobile devices based on the Intel PXA27x processor.

"We are pleased that QSound is one of the first companies to support Intel(R) Wireless MMX(TM) technology, said Gary Forni, Director of Independent Software Vendor Enabling for Intel's Cellular and Handheld Group. "Multimedia applications can be very demanding and with the smaller screens available on most mobile devices today, high quality audio can have a dramatic impact on the end users overall experience."

"A leader in 3D audio solutions since 1988, QSound was quick to adopt Intel MMX technology on desktop computers, and now we are extending that experience and know how to Intel Wireless MMX technology platforms," stated David Gallagher, president and CEO of QSound Labs. "Customers of the Intel(R) PXA27x processor family can take immediate advantage of QSound's feature rich microQ audio engine to offer their users superior features at lower cost and with greater convenience."

About microQ

QSound's core technology, microQ, is a compact, hardware-independent and highly efficient software audio engine providing functions such as polyphonic ringtones, video game sounds, music playback, digital effects, audio restoration algorithms, and recording for portable applications. It is ideally suited for Internet appliances, hand-held and mobile devices. A low-cost and flexible option for consumer electronics and mobile device manufacturers, microQ is inherently modular, scalable and portable. Its core components include a digital audio playback engine, a wavetable synthesis engine with a scalable sample set, and a multi-channel stereo mixer. Additionally, microQ offers a wide range of processes to control frequency response, dynamics and spatial enhancements, as well as full 3D positional audio.

About QSound Labs, Inc.

Since its inception in 1988, QSound Labs, Inc. has established itself as one of the world's leading audio technology companies. The company has developed proprietary audio solutions that include virtual surround sound, positional audio and stereo enhancement for the consumer electronics, PC/multimedia, Internet and healthcare markets. QSound Labs' cutting-edge audio technologies create rich 3D audio environments allowing consumers to enjoy stereo surround sound from two, four or 5.1 speaker systems, as well as portable headphones. The company's customer and partner roster includes Toshiba, Philips, Sanyo, Sharp, Aiwa, and MiTAC, among others. To hear 3D audio demos and learn more about QSound, visit our web site at http://www.qsound.com.

This release contains forward-looking statements within the meaning of the Private Securities Litigation Act of 1995 concerning, among other things, introduction of the availability new microQ-enabled products that support Intel Wireless MMX technology. Investors are cautioned that such forward-looking statements involve risk and uncertainties, which could cause actual results, performance or achievements of QSound, 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 acceptance of microQ technology by manufacturers and consumers, continued growth of the mobile electronics market, dependence on intellectual property, rapid technological change, competition, general economic and business conditions, and other risks detailed from time to time in QSound's periodic reports filed with the Securities and Exchange Commission. Forward-looking statements are based on the current expectations, projections and opinions of QSound's management, and QSound 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.