CALGARY, Alberta--(BUSINESS WIRE)--Feb. 8, 2005--QSound Labs, Inc. (NASDAQ:QSND)

QSound`s QStream(TM) Technology to be Integrated into Sony`s SonicStage Software Providing an Enhanced Audio Platform for its VAIO line of PCs

QSound Labs, Inc. (NASDAQ: QSND), a leading developer of audio and voice software solutions, today announced a licensing agreement with Sony Corporation for QSound`s QStream technology. QStream has been integrated into Sony`s SonicStage Mastering Studio (``SSMS``) software, which is bundled on all Sony VAIO personal computers. QStream extends the audio processing capabilities of the SSMS software by allowing it to handle playback from all media players on the PC platform. QSound received a one time license fee for the QStream technology. Personal computers incorporating the QSound technology are shipping in Japan and are expected to be available to Sony customers world wide in Q1 2005.

``This license is further proof that QSound is one of the pre-eminent audio software suppliers for PC and mobile devices,`` said David Gallagher, President and CEO, QSound Labs. ``The VAIO product line has achieved an excellent reputation worldwide and we are very proud to now be an integral part of its audio solution. QStream is the first step towards incorporating other QSound technologies into this product line.``

The VAIO (Video Audio Integrated Operation) product line was first launched in 1996 and was designed as an entertainment PC through which users could enjoy a wide array of entertainment content such as music and movies. As it evolved, the product line has incorporated the most advanced AV technologies as well as PC fundamentals.

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 or up to 7.1 speaker systems. The company`s customer and partner roster includes Broadcom, Qualcomm, Vodafone, Toshiba, Philips, MiTAC, E-TEN, Sharp and RealNetworks, among others. To hear 3D audio demos and learn more about QSound, visit our web site at http://www.qsound.com.

This release contains forward-looking statements within the meaning of the Private Securities Litigation Act of 1995 concerning, among other things, Sony`s plans to use QStream in its VAIO product line. 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 QStream, acceptance of QStream by OEM, ODM`s and consumers, continued growth of the PC 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.

QSound Labs, Inc. (NASDAQ:QSND)