Press Release



QSound Labs' New Soft Audio Technology Included with Boston Acoustics First USB Speaker System



Boston Acoustics' BA735 USB Speakers now available to Major OEMs



Calgary, Alberta - January 13, 2000 -- QSound Labs, Inc. (NASDAQ: QSND) a leading supplier of digital and analog audio solutions, announced today that Boston Acoustics (NASDAQ: BOSA), a leading manufacturer of innovative audio systems, is marketing their first Universal Serial Bus (USB) multimedia sound system with QSound's 3D audio software. The BA735 USB is an innovative speaker/software audio system that combines fast digital streaming, easy hookup to the computer and four-channel gaming with only two speakers. The QSound software, based on proprietary audio algorithms, provides superior 3D audio effects without the need for any additional hardware. These speakers are now available and are being marketed to Boston Acoustics' major OEM customers.

"We are thrilled that Boston Acoustics chose our soft audio technology for their standard setting USB speakers," stated David Gallagher, President and CEO of QSound Labs. "Their reputation for innovation and excellence is very well known. We believe that this product is a testament to the quality and effectiveness of our new soft audio technology."

"QSound's soft audio solution was the perfect choice for our new BA735 USB speakers", said Andrew Kotsatos, CEO of Boston Acoustics. "It provides us the ability to offer our customers a discriminating product with exciting gaming effects and the highest quality audio available."

As a result of its excellent performance and superb audio quality, the BA735 USB has been selected as a "GoldTree" Device by the USB ImplementersForum. "Goldtree " devices represent the latest in cutting edge technology for the USB devices and are used to test all USB peripherals and systems seeking the USB logo.

About Boston Acoustics:
Boston Acoustics, Inc. (NASDAQ: BOSA) is a leading manufacturer and marketer of innovative, high-performance consumer audio entertainment products for the home, automotive and computer environments. Corporate headquarters are at 300 Jubilee Drive, Peabody, MA 01960 USA. The company can be reached at 978-538-5000. Please visit for more information.

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 projected shipment dates of 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 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. 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 the QSound press releases index or by calling the company directly at 403-291-2492.





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