Press Release



QSound Labs' AudioPix Plus Multimedia Software Awarded KODAK Picture Friendly Designation



Direct Link to Kodak PhotoNet™ Provides Easier Access for AudioPix Users



Calgary, Alberta - June 26, 2000 -- QSound Labs, Inc. (NASDAQ: QSND), a leading developer of audio, e-commerce and multimedia software products, today announced that its AudioPix Plus multimedia software has been awarded the Kodak Picture Friendly designation from Eastman Kodak Company. The designation allows QSound to include the Kodak Picture Friendly logo on its Audio Pix Plus software. It also makes it easier for Kodak consumers to use AudioPix Plus as it offers a direct link to PhotoNetTM online, providing consumers the ability to download their digital photos directly into their AudioPix image album to create exciting multimedia content with their personal photos.

"Kodak is pleased QSound Labs has joined the Kodak Picture Friendly group, to supply products like AudioPix Plus to help people use and enjoy their pictures," said Carl Gustin, Chief Marketing Officer.

"Being awarded the Kodak Picture Friendly designation is a confirmation of the quality and ease of use of QSound's AudioPix Plus software," said David Gallagher, President and CEO, QSound Labs. "The link to Kodak's PhotoNet directly benefits AudioPix users and, we believe, provides another strong selling feature for the product."

The Kodak Picture Friendly designation is a consumer's assurance that a product easily interfaces with several Kodak products and services, including Kodak PhotoNetTM online, Kodak Picture CD and Kodak digital cameras.

About AudioPix:
AudioPix is the ultimate, easy-to-use software application that puts the power of multimedia into the hands of everyone. AudioPix allows users to combine MP3 sound files with digital photos and images to create personal multimedia slideshow presentations. Completed AudioPix creations can be played back with either RealPlayerTM or Windowsâ Media Player. For more information about AudioPix and AudioPix Plus visit

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 AudioPix 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 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. Kodak is a trademark of Eastman Kodak Company.





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