Press Release



QSound Labs Licenses Its 3D Audio Software to Oak Technology for New DVD Chipse



Oak Technology's OTI19820/OTI 265 Chipset Significantly REduces OEMs Cost



Calgary, Alberta - April 3, 2000 -- QSound Labs, Inc. (NASDAQ: QSND), a leading supplier of digital and analog audio software solutions, today announced that Oak Technology (NASDAQ: OAKT) has licensed QSound's QSurroundTM, QMSSTM and QXpanderTM technologies for its new OTI-9820/OTI-265 chipset. The chipset is a complete system-on-a-chip based solution that combines all major DVD-player functions on only two chips enabling OEMs to produce a more cost-effective product. Samples are now available and full production is expected in the fall of 2000.

QSurround is a suite of audio algorithms that provide 3D stereo enhancement and virtual surround sound for a variety of PC/multimedia and home theatre applications, including DVD players.

"We are very pleased that Oak Technology has chosen our 3D audio technology for its new DVD chipset," said David Gallagher, President and CEO, QSound Labs. "The additional competitive advantage that QSound provides Oak benefits both the OEM and the consumer, offering superior 3D audio quality in a highly integrated, flexible chipset at an affordable price."

"The applicability of QSound's audio technology to this particular application was a natural fit," said Alain Bismuth, Vice President, DVD Player Program for Oak Technology's Optical Storage Division. "In addition, QSound was able to cost-effectively deliver us three separate audio solutions on a single platform."

According to In-Stat, DVD player shipments will exceed 13.5 million units this year, which represents a 99% increase compared to 1999 and the average price of a player will reach $200 in the fourth quarter of 2000, a 32% reduction compared to last year. As well, with DVD titles from all major studios becoming widely available in both rental and sales, the last major obstacle for DVD players reaching the mass market, according to In-Stat, is the availability of low-cost players.

About Oak Technology, Inc.:
Founded in 1987 and public since 1995, Oak Technology, Inc. designs, develops and markets embedded software and semiconductor solutions to original equipment manufacturers (OEMs) worldwide who serve the optical storage, consumer electronics and digital imaging markets. Major customers include Canon, HP, LG Electronics, Minolta, Samsung, Sharp, Toshiba and Xerox. Oak's principal development sites and located in California, Massachusetts, Taiwan and Germany. Sales operations are located in Japan, Taiwan, China and Korea as well as the United States. Additional information about Oak Technology and its products can be found on the World Wide Web at

This release contains forward-looking statements within the meaning of the Private Securities Litigation Act of 1995 concerning, among other things, the anticipated introduction of new products and future financial results, including statements made by Mr. Gallagher. 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, availability of sufficient resources for the Company to timely and cost effectively carry out the Company's business plans and strategies, dependence on the performance of third parties who have 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.





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