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QSurround-Enabled 'Acoustic Research' Headphones Win CES Innovations 2001 Award

``As the leader in 900MHz wireless audio technology, our never-ending goal is to provide consumers with the highest sound quality possible through wireless headphones,'' said Joe Forget, Sr. Product Manager, Recoton Accessories, Inc. ``After evaluating all of the available headphone virtual surround sound enhancements, we determined QSound's QSurround Headphone to be a superior solution. The use of QSurround Headphone provides our wireless headphone consumer's with the most realistic surround sound experience, making the Acoustic Research Surround Sound Headphones our most feature-filled headphone product to date.''

QSurround Headphone allows the user to enjoy the full benefit of Dolby® Digital audio on a DVD soundtrack. Standard headphone technology is inadequate for multi-channel audio content because it fails to reproduce the staging and imaging. The Dolby Digital audio content was created and intended for reproduction via multiple discrete loudspeakers in separate physical locations. QSurround Headphone uses QSound's proven 3D audio algorithms to provide a realistic surround sound experience for the headphone listener.

``Having an industry leader like Recoton be the first to incorporate our new QSurround Headphone technology into a product is a great compliment,'' said David Gallagher, President, CEO, QSound Labs, Inc. ``We believe the market potential for this technology and Recoton's wireless product is significant with the extensive market penetration of digital audio devices like DVD, digital cable, and the latest video game platforms.''

About QSound Labs, Inc.

Since its inception in 1988, QSound Labs, Inc. has evolved into one of the world's leading audio technology companies and an e-commerce solution provider. 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. The Company's cutting-edge audio technologies create rich 3D audio environments allowing consumers to enjoy stereo surround sound from two, four or 5.1 speaker systems. For more information, visit our Web site at http://www.qsound.com.

About RECOTON

Recoton Corporation (Nasdaq National Market RCOT) is a global leader in the development, manufacturing and marketing of consumer electronic accessories, loudspeakers and car audio products. Recoton's more that 4,000 products feature highly functional accessories for audio, video, car audio, camcorder, multi-media/computer, home office, cellular and standard telephone, music and video game products and 900MHz wireless technology headphones and speakers. They are sold under the Advent®, Ambico®, AR®/Acoustic Research®, Discwasher®, InterAct®, Jensen®, Recoton®, Ross(TM), and Stinger® brand names. The Company also produces and markets audio components, high fidelity loudspeakers, home theater speakers, and car audio speakers and components which are sold under the Advent®, AR®/Acoustic Research®, HECO(TM), Jensen®, MacAudio(TM), Magnat®, NHT® (Now Hear This) and Phase Linear® brand names.

This release contains forward-looking statements within the meaning of the Private Securities Litigation Act of 1995 concerning, among other things, introduction of new products. Investors are cautioned that such forward-looking statements involve risk and uncertainties, which could cause actual results, performance or achievements of the Company, 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 dependence upon Recoton's use of QSound technology, consumer acceptance of the Company's products, rapid technological change and competition, the Company's ability to carry out its business strategy and marketing plans, including availability of sufficient resources for the Company to do so timely and cost effectively, dependence on intellectual property, and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Ex change Commission. Forward-looking statements are based on the current expectations, projections and opinions of the Company's management, and the Company 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.

Contact:

     QSound Labs, Inc.
     Investor Contact:
     Paula Murray, 954/796-8798
     Email: paula.murray@qsound.com
     Website: www.qsound.com
     or
     Media Relations:
     Jody Alexander, 403/291-2492
     Email: jody.alexander@qsound.com