Press Release



QSound Labs Launches microQ at CTIA WIRELESS 2003



First QSound product targeted for mobile and handheld markets



New Orleans - March 17, 2003 -- QSound Labs, Inc. (NASDAQ: QSND), a leading developer of audio, e-commerce and multimedia software products, today announced the launch of microQ™, an audio software engine for the mobile and handheld device markets. The launch is taking place at CTIA Wireless 2003, being held at Ernest N. Morial Convention Center, New Orleans from March 17th to 19th.microQ is being demonstrated as part of the Intel® PCA Developer Network Community booth at CTIA Wireless 2003. The product has been optimized for use on Intel PCA application processors based on IntelXscale™ Microarchitecture Technology."


Advanced audio processing engines such as the microQ engine exemplify the need for high per-formance processors such as the Intel® Xscale™ Microprocessor in Phones and PDAs," said Gary Forni, Director of ISV Enabling for Intel's Wireless Communications and Computing Group. "QSound's microQ demonstrates that advanced audio processing can be done in software using Intel Integrated Performance Primitives without the use of specialized audio hardware."


microQ is a compact and highly efficient software audio engine providing functions such as polyphonic ringtones, video game sounds, music playback, digital effects and recording for portable applications including Internet appliances, hand-held and mobile devices. The new product is based on QSound's well-established PC soft-audio engine, which is currently being used in critically acclaimed soundcards from Philips Consumer Electronics.


"This product rollout provides QSound with an opportunity to create new markets for our award winning audio technologies," stated David Gallagher, President of QSound Labs, Inc. "Focussing on the Intel platform made sense from both a marketing and technical perspective, and we expect to gain significant exposure for microQ at this industry leading event."


About QSound Labs, Inc.
Since its inception in 1988, QSound Labs, Inc. has evolved into one of the world's leading audio technology companies and an e-commerce solution provider. The Company has developed proprietary audio solutions that include virtual surround sound, positional audio and stereo enhancement for the consumer electronics, PC/multimedia, Internet and healthcare markets. The Company's cutting-edge audio technologies create rich 3D audio environments allowing consumers to enjoy stereo surround sound from two, four or 5.1 speaker systems. To hear 3D audio demos and learn more about QSound, visit our web site at



This release contains forward-looking statements within the meaning of the Private Securities Litigation Act of 1995 concerning, among other things, expectation of revenues from existing licensees and from customers for new products for the cellular, handheld device, and IP telephony markets, and an improvement in revenues for the first quarter of 2003 over the first quarter of 2002. Investors are cautioned that such forward-looking statements involve risk and uncertainties, which could cause actual results, performance or achievements of QSound, 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 loss of relationships with companies that do business with QSound, successful product development, introduction and acceptance, QSound's ability to carry out its business strategy and marketing plans, dependence on intellectual property, rapid technological change, competition, general economic and business conditions, continued growth of the Internet and other risks detailed from time to time in QSound's periodic reports filed with the Securities and Exchange Commission. Forward-looking statements are based on the current expectations, projections and opinions of QSound's management, and QSound 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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