Press Release



QSound Labs' microQ™ Technology Licensed to BenQ



MicroQ’s Superior Audio Capabilities to be Incorporated into BenQ’s Mobile Phones beginning with the P50



CALGARY, AB - June 13, 2005 - QSound Labs, Inc. (NASDAQ: QSND), a leading developer of audio, and voice software solutions, today announced a licensing agreement with BenQ, formerly Acer Communication & Multimedia, for key microQ components, including the microQ Synthesizer, QXpander and QSizzle/QRumble to improve high and low frequency audio components. BenQ plans to integrate QSound’s microQ technology into a wide range of mobile phones using various operating systems. The P50, which is based on Intel’s PXA272 processor, features Intel’s Wireless MMX™ technology, an advanced set of multimedia instructions that brings desktop-like multimedia performance to PXA272 processor based products. The P50 was recently launched in Asia and will be available worldwide before the end of the year.


“Adding BenQ to our fast growing list of microQ partners is very gratifying,” said David Gallagher, President and CEO of QSound Labs. “The continued adoption of the microQ technology by industry leaders demonstrates that QSound is becoming the “supplier of choice” for superior audio solutions in the mobile and broadband communications market.”


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, 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 for games.


About BenQ
BenQ is an industry leader in networking lifestyle devices with an expertise that encompasses display, storage, imaging, wireless and broadband areas.


BenQ has manufacturing plants in Malaysia, Mexico, China and Taiwan. The company has 15,000+ employees worldwide, supporting a strong global sales marketing and service network spanning Asia-Pacific, Europe and the Americas. BenQ has research and development facilities in Taiwan (Hsinchu Lab), China (Suzhou Software Development Center) and California, USA (Wireless Technology Center), and has more than 2000 research and development employees in Suzhou, Taipei, Taoyuan, Hsinchu and San Diego. BenQ has amassed 1,738 global patents. 2003 revenues exceeded US$3.6 billion dollars. For more information about BenQ, please visit our website 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 mobile devices, consumer electronics, PC/multimedia, and Internet markets. QSound Labs’ cutting-edge audio technologies create rich 3D audio environments allowing consumers to enjoy stereo surround sound from two, four and up to 7.1 speaker systems. The company’s customer and partner roster includes Broadcom, Qualcomm, Vodafone, PacketVideo, Toshiba, Philips, Sanyo and RealNetworks 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, BenQ’s plans to use microQ in its products, distribution of microQ-enabled mobile 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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