QSoundís QSurround® 7.1 Technology To Be Incorporated Into iLABís
Turn-Key Solution for Consumer Electronics OEMs


SELDEN, NY USA - November 25, 2002 - QSound Labs, Inc. (NASDAQ: QSND), a leading supplier of audio software solutions, and iLAB America, a leader in digital audio product designs, today announced that they have joined forces to offer QSoundís QSurround technology in a new "off-the-shelf" production board designed and developed by iLAB. This collaboration will be the first to offer QSoundís new QSurround 7.1 technology to Consumer Electronics OEMs and will be available in the 1st quarter of 2003.

"Offering a turn-key solution significantly reduces an OEMs time to market, helping them keep their competitive edge," said Wayne Boyle, President and CEO, iLAB America. "Having previously worked with QSound, we are well aware of the quality of their audio technology and the considerable talents of their engineers. Moving forward to form a partnership and offering a product based on our board design and QSoundís superior audio technology was, in our view, the next logical step."

At the heart of the QSurround 7.1 technology is QSoundís Multi-Speaker Surround Synthesis technology (QMSS), a stereo-to-surround synthesis algorithm that creates stunning surround effects with distinctly different outputs for 4, 5.1 6.1, or 7.1 full-range speakers, including a discrete subwoofer channel. QMSS has been featured in numerous consumer electronics products, including the critically acclaimed Acoustic Edge™ Sound card from Philips.

"QSound's continued relationship with iLABs will give OEMs unmatched technology that transforms ordinary stereo music, games and movies to true surround-sound mediums," stated David Gallagher, President and CEO, QSound Labs. "We are anticipating many positive results from this partnership, and are looking forward to seeing the evolution and advances made in the surround-sound industry."



About iLAB America

Founded in 1998, iLAB America, short for Integration Laboratories, develops state of the art Multiroom and Home Theater integration products for many of the A/V industry's most respected brands. ILAB America specializes in the design and development of Digital audio products such as Dolby Digital, DTS and virtual surround sound processors. With complete ISO 9002 certified production and test services, iLAB America greatly simplifies and speeds the process of reaching the market for OEM's by providing a complete design to production solution through a single source. With manufacturing based in China, iLAB Americaís competitive pricing can offer significant marketing advantages while maintaining the ease of communicating directly with its US-based office. For more information, visit our website at

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

For More Information, Please Contact:

ILAB America Inc.

45 Hemlock Street

Selden, NY 11784

Phone: (631) 696-4418

Fax : (631) 696-4460

Qsound Labs Inc. Media Relations

Jody Alexander

Phone: (403) 291-2492

Fax: (403) 250-1521



iLAB America is an Audio/Video and Gaming Peripherals Developer and iPhone App Developer based in NY USA.