Press Release



Vodafone Selects QSound Labs microQ 3D Audio for Vodafone VFX Reference Implementation



Real-Time 3D Audio to be a Required Feature in Future Vodafone VFX-Compliant Handsets



CALGARY - October 4, 2004 - QSound Labs, Inc. (NASDAQ: QSND), a leading developer of audio and voice software solutions, today announced that Vodafone, the world's leading mobile telecommunications company, has licensed its microQ 3D audio solution for Vodafone VFX reference implementation. As real-time 3D audio has become a required feature in future Vodafone VFX-compliant handsets, the agreement signals clear momentum for QSound Labs’ microQ technology – already adopted by numerous leading companies in the mobile device market.

"Our selection of QSound Labs’ microQ 3D audio solution for Vodafone VFX reference implementation, allows Vodafone to facilitate the most cutting-edge capabilities in advanced 3D audio," noted Maria Aguilera, Vodafone Global Product Manager. "With Vodafone VFX-compliant handsets of the future, it will be necessary to incorporate 3D audio – and QSound’s microQ is our technology option of choice for the Vodafone VFX Reference Implementation."

Vodafone VFX aims to create a comprehensive Java technology platform for the development of highly portable, highly interactive and visually rich applications for mobile devices offered by Vodafone. Vodafone VFX improves the compatibility, interoperability and completeness of the J2ME technology platform for mobile phones, and raises the bar of functionality for mass-market mobile devices. Devices that implement the Vodafone specification will benefit from a broad range of compatible applications.

"Vodafone is at leading edge of the mobile industry and its selection of QSound Labs’ 3D audio technology represents definitive proof that microQ is a superior solution," stated David Gallagher, president and CEO of QSound Labs. "Our agreement with Vodafone ensures the proliferation of microQ technology in a broad range of mobile devices based on Vodafone VFX."


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 Vodafone:
Vodafone is the world’s largest mobile community, with equity interests in 26 countries and Partner Networks in a further 13 countries, serving over 133 million proportionate customers. Vodafone is a trade mark of the Vodafone Group. Other product and company names mentioned herein may be the trade marks of their respective owners.


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, expected future use of QSound’s microQ 3D technology in mobile devices. 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 acceptance of microQ 3D by mobile device manufacturers and consumers, acquisition of new licensees on favorable terms, continued growth of the mobile 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 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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