Using normal WAV or AIFF mono sound files, QCreator creates dramatic audio effects by allowing the user to position sound within a 3 dimensional space - all in an easy-to-use, affordable program. ``We've had numerous requests for a product like this,'' said Bob McLauchlan, Director of Marketing for QSound Labs. ``QCreator showcases our technology in an easy to use, straightforward application. The principal distribution channel for this product will be the Internet. As a result, this product will go a long way in further solidifying QSound's position as the 3D audio technology leader on the Web.''

QCreator is targeted to web design professionals, radio stations, musicians and most importantly, consumers. Information on the product can be found at www.qsound.com/qcreator. QCreator will sell for $49.95 and will be available for purchase from the QSound Website at www.qsound.com as well as the RealNetworks' (NASDAQ:RNWK - news) Web site at www.real.com.

ABOUT QSOUND LABS, INC.

QSound Labs, Inc., now in its 10th year, is an advanced audio technology company specializing in 3D sound placement and audio image enhancement. Based in Calgary, Alberta, the company uses patented 3D audio technologies to serve the home entertainment, PC/Multimedia, consumer electronics and professional audio industries. The technologies provide immersive, realistic sound environments that include positional audio, stereo enhancement and virtual surround sound.

All product and brand names are trademarks and/or registered trademarks of their respective owners. Additional news releases may be obtained via the Internet at www.qsound.com/press0.htm or by calling the company directly at 403-291-2492.

Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. Investors are cautioned that such forward-looking statements involve risk and uncertainties, which could significantly impact the actual results, performance or achievements of the Company, or industry results. Such risks and uncertainties include, but are not limited to, risks associated with the commercialization of the Company's technologies, dependence on intellectual property, uncertainties relating to product development and commercial introduction, rapid technological change and competition, manufacturing uncertainties and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.

Contact:

     QSound Labs, Inc.

     Debbie Dalen, 403/291-2492

     403/250-1521 (FAX)

     debbie.dalen@qsound.com

     http://www.qsound.com

              or

     QSound Labs, Inc.

     Paula Murray, 954/796-8798

     954/796-9312 (FAX)

     paula.murray@qsound.com