Press Release



QSound to Showcase Newest Digital Audio Enhancement Software, IQFX3T, At RealNetworks® Conference



Co-Development of iQfx3 Fortifies Relationship with RealNetworks and Offers Consumers Unsurpassed 3D Audio Enhancement for New   RealOne™ Player



Calgary, Alberta-September 24, 2001 - QSound Labs, Inc. (NASDAQ: QSND), a leading supplier of audio solutions is showcasing a Beta version of its latest digital audio enhancement software, iQfx3, at the Real Conference 2001, September 23-25 at the Washington State Convention & Trade Center in Seattle, Washington.

iQfx3 makes streaming Internet audio and MP3s come alive with QSound's remarkable 3D audio effects and has been developed exclusively for RealNetworks' new feature-rich, streamlined, single platform product, RealOne Player.

"Since we expect to ship the gold version of iQfx3 within the next 4 weeks, we thought it was important to introduce our Beta version at the Real Conference to give consumers a taste of what to expect," said David Gallagher, President and CEO of QSound Labs, Inc. "This product fortifies our long-standing, strategic relationship with RealNetworks and ensures its continued growth."

About RealOne:
RealOne Platform empowers content providers and technology partners to create a new generation of digital media experiences and businesses. Built on RealSystem iQ, RealOne Platform is a new consumer digital media services platform that provides an end-to-end combination of tools, services and technologies. With RealOne Platform content providers and technology partners can transform their consumers' media experience, enrich their offerings, and enable commerce opportunities. Additional information about RealOne Platform may be found at:

This release contains forward-looking statements within the meaning of the Private Securities Litigation Act of 1995 concerning, among other things, introduction of new products. 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, loss of relationships with companies that do business with the Company, consumer acceptance of the Company's products, dependence on intellectual property, rapid technological change and competition, 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.





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