Press Release



PacketVideo Licenses QSound Labs' microQT Technology for Their Mobile Media SoftwarePacketVideo Licenses QSound Labs' microQT Technology for Their Mobile Media Software



microQ's Cutting Edge 3D Audio Technology to be Integrated into PacketVideo's Software Providing a Complete Multimedia Solution for Mobile Devices



San Francisco, CA - CTIA Wireless Show (Booth 620-PodQ) - October 25, 2004 - QSound Labs, Inc. (NASDAQ: QSND), a leading developer of audio and voice software solutions, and PacketVideo, the world's premier independent provider of multimedia communications software for mobile devices, today announced a licensing agreement for QSound's microQ MIDI Synthesizer and Q3D positional audio components. The microQ components will be integrated into PacketVideo's multimedia products which support multiple hardware and software architectures including Symbian, Linux, ARM, and TI. Solutions incorporating the QSound components are expected to be available to customers in Q1 2005.

PacketVideo offers handset OEMs customized suites of innovative embedded software products that enable mobile phones to take digital pictures, record home movies, play digital music & videos and make video phone calls. PacketVideo works with carriers to define next generation services, with OEMs to design compelling consumer products, and with value chain participants such as QSound to make it all work. By becoming part of the PacketVideo ecosystem, microQ can be easily integrated into any next generation mobile device to add superior audio enhancements.

"microQ is an excellent complement to our multimedia solutions," said Dr. Osama Al-Shaykh, VP Technology, PacketVideo. "We are very pleased to work with QSound to offer advanced audio and video solutions - the core of mobile media - to our OEM handset customers."

"By joining forces with PacketVideo, one of the world's leading multimedia providers for the mobile marketplace, we are offering our audio solutions to yet another new customer base, " said David Gallagher, President and CEO, QSound Labs. "microQ's continued adoption by an ever increasing number of leading mobile device companies is proof that it is fast becoming the audio standard for this marketplace."

About microQ:
The microQ feature set is unmatched by any single vendor. It 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, and 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 PacketVideo:
PacketVideo is the number one supplier of embedded multimedia communications software for mobile phones. The company's software enables mobile phones to take digital pictures, record home movies, play back digital music and videos, and make 2-way videophone calls. PacketVideo leadership is demonstrated by unrivaled relationships with mobile operators, dominance in design wins, and the millions of PacketVideo-powered multimedia phones in the market. PacketVideo is headquartered in San Diego, California. More information can be found at


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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