Press Release



QCommerce Announces Co-Marketing Agreement with TelaresT at ISPCON Spring 2000



Agreement Brings First e-Commerce Services to Country's Largest Revenue-Sharing ISP Consortium



Orlando, FL, May 24, 2000 -- QSound Labs, Inc. (NASDAQ: QSND), a leader in e-commerce solutions, multimedia software, Internet audio and audio technology today announced that QCommerce has entered into a co-marketing agreement with Telares™, a Dallas-based aggregator of communications products and services.

Telares is the country's largest revenue-sharing consortium of local and regional Internet Service Providers (ISPs) and has more than 200 ISP members reaching over 600,000 customers and is a division of Dallas-based Internet Global Services, Inc. (iGlobal).

The first co-marketed product will be officially launched today at ISPCON, in Orlando, FL., where thousand of ISPs, Cable operators, Telecom resellers and Web hosting companies are meeting to focus on the business of providing Internet access.

As part of this agreement, Telares will offer QCommerce's InternetStore, a proven Web-based storefront application, to its member ISPs and their merchants. Additionally, QCommerce and Telares will co-market the following e-business solutions:


  • Participation in QCommerce's shopping portals enabled by the recent acquisition of
  • LookSmart's wide distribution directory listings - LookSmart category listings reach 50,000,000 unique visitors each month - nearly 74% of US web users
  • LookSmart's Portal Maker - private branded portals act as the default home page for subscribers and includes a complete web directory, web search engine, news feed, weather and stock quotes
  • affiliateDirect™ an on-line marketing program and measurement tool designed to drive traffic to stores


"Telares is designed to bring the best of communication and Internet services to local and regional ISPs so they can compete with major providers," said David Link, President and CEO of Telares. "In our opinion, QCommerce has the most sophisticated e-commerce package available and will facilitate expansion for Telares and its member ISPs."

"QCommerce's business strategy is to become the 'Complete Internet Retailing Resource'," said Fran Munoz, Executive Vice President, QSound Labs. "The agreement with Telares allows us to combine the best available e-business solutions with business partnerships and co-marketing agreements with successful ISPs to help accomplish that goal."

About Internet Global Services, Inc. and Telares:
Internet Global Services, founded in 1994, aggregates communications technologies utilizing and integrating voice, data and video. In 1998, iGlobal created Telares™, a nationwide consortium of local and regional Internet Service Providers to offer advanced communication services including long distance, DSL, VISP, ISV Mail and other value-added services. Telares services are currently available through ISPs in 68 major markets, with planned expansion to more than 100 markets by early 2001. Telephone: 1-877-4TELARES. Web site:

About QCommerce:
QCommerce, a wholly owned subsidiary of QSound Labs, Inc., provides e-commerce solutions for small to medium sized businesses. Our portfolio includes: InternetStore™, a complete storefront based on self-serve technology that incorporates merchant credit card accounts, secure transaction processing and inventory management - affiliateDirect™, an on-line marketing program and measurement tool designed to drive traffic to the store - the shopping portal - distribution and advertising agreement with LookSmart to drive traffic to sites and increase shopper awareness. Visit, or for more information.

This release contains forward-looking statements within the meaning of the Private Securities Litigation Act of 1995 concerning, among other things, future growth and profitability. 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 and services, dependence on the performance of third parties who have agreed to market the Company's technologies, continued growth of the Internet, dependence on intellectual property, uncertainties relating to product development and commercial introduction, system failures, virus and security vulnerability, rapid technological change and competition, 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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