Press Release



QSound Labs to Showcase Enhanced 3D Audio Solution for the Mobile Entertainment Market



Expanded microQ Algorithm Technology Delivers Rich, Realistic Surround Sound Effects Specifically Tuned for Portable Headphone Use



Calgary, Alberta - March 22, 2004 -- QSound Labs, Inc. (NASDAQ: QSND), a leading developer of audio, voice and e-commerce software solutions, today announced it will showcase an enhanced algorithm technology – part of its flagship microQ audio solution suite – that now makes it possible to deliver even richer 3D audio experiences and surround sound effects for consumers using headphones with their mobile entertainment devices. QSound Labs is conducting live demonstrations of this technology at CTIA Wireless 2004 in the Georgia World Congress Center’s M-tertainment Pavillion, Hall B5, Booth # 4875-C.

“QSound Labs continues to raise the bar in complete software audio solutions for the mobile entertainment market, and by adding new 3D audio algorithms which are tuned for portable headphones – we’re extending the possibilities for manufacturers and consumers alike,” stated David Gallagher, president and CEO of QSound Labs. “Our enhanced algorithms round out QSound’s complete microQ technology suite by delivering an extended range of cutting-edge audio experiences across a growing spectrum of consumer platforms.”

For mobile device manufacturers, QSound’s advanced technology tuned for headphone use, offers a sophisticated software solution that is scalable based on a customers’ available resources. As a result, it is flexible, cost-effective and seamless to implement and greatly heightens the mobile entertainment and game playing experience when using portable headphones.


About microQ:
microQ is a compact, hardware-independent and highly efficient software audio engine providing functions such as polyphonic ringtones, video game sounds, music playback, digital effects, audio restoration algorithms, and recording for portable applications. It is ideally suited for Internet appliances, hand-held and mobile devices. A low-cost and flexible option for consumer electronics and mobile device manufacturers, microQ is inherently modular, scalable and portable. Its core components include a digital audio playback engine, a wavetable synthesis engine with a scalable sample set, and a multi-channel stereo mixer. Additionally, microQ offers a wide range of processes to control frequency response, dynamics and spatial enhancements, as well as full 3D positional audio.


About QSound Labs, Inc.:
Since its inception in 1988, QSound Labs, Inc. has established itself as one of the world's leading audio technology companies. 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. QSound Labs’ cutting-edge audio technologies create rich 3D audio environments allowing consumers to enjoy stereo surround sound from two, four or 5.1 speaker systems, as well as portable headphones. The Company’s customer and partner roster includes Toshiba, Philips, Panasonic, Sharp, Aiwa, and Electronic Arts, among others. 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, introduction of enhanced microQ technology. 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 OEM acceptance of microQ, dependence on intellectual property, rapid technological change, competition, general economic and business conditions, 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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