Press Release



QSound Labs' microQ Selected as Audio Platform
by Wistron Corporation



Audiovox and AT&T Wireless currently shipping microQ™ enabled product - PPC4100 PDA Phone



CALGARY - July 28, 2004 - QSound Labs, Inc. (NASDAQ: QSND), a leading developer of audio, and voice software solutions, today announced a licensing agreement with Wistron Corporation, formerly the design, manufacturing & services operations of Acer Inc., for key microQ components, including the microQ Synthesizer, QXpander and QSizzle/QRumble to improve high and low frequency audio components. Wistron plans to integrate QSound’s microQ technology into a wide range of mobile phones and PDAs - the first being AT&T Wireless’s newest PDA phone the AudioVoxPPC4100, which is currently available in the United States.

“QSound’s microQ technology offers a superior audio solution that is ideally suited to meet the needs of our product designs,” stated Honda Hwang, Chief Handheld and Mobile Communication head of Wistron Corporation. “Its cutting-edge capabilities and cost savings greatly increase our ability to fulfill demanding design and manufacturing requirements for next generation mobile devices."

"We are pleased to add Wistron to the growing list of partners who have chosen the microQ audio engine for their mobile products,” stated David Gallagher, president and CEO of QSound Labs. “The PDA phone market is at an early stage so, in the short term, the revenue potential for this segment is minimal but the continuing adoption of the microQ platform throughout the mobile marketplace bodes well for the future."


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 and recording for portable applications, including 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 Wistron Corporation:
With over twenty years experience and a strong engineering base in product development, Wistron is a leader in the delivery of innovative electronics manufacturing services. A focus on ICT (information, communication and technology) products and partnerships with leading IT technology companies means Wistron can incorporate the latest technology platforms into product offerings to OEM customers. Customers quickly move ahead with their market product introduction plans by relying on Wistron to manage part or all of their product development plans. For more information visit


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. 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, Wistron’s plans to use microQ in its products, distribution of microQ-enabled PDA phones, and anticipation of continuing adoption of microQ in the mobile marketplace. 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 continued licensing and use of microQ, acceptance of microQ by OEM, ODM’s and consumers, continued growth of the wireless devices market, 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 SEC. 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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