3DsoundSurge Press Release: QSOUND LABS TO PROVIDE iQ(tm) TO RealNetworks' REALJUKEBOX(tm) and RealJukebox PLUS(tm) USERS.

QSound LABS TO PROVIDE iQ(tm) TO RealNetworks' REALJUKEBOX(tm) and RealJukebox PLUS(tm) USERS.

REALJUKEBOX USERS NOW HAVE EASY ACCESS TO QSOUND'S iQ SOFTWARE THROUGH REAL.COM

Calgary, Alberta - January 26, 2000 - QSound Labs, Inc., a leading supplier of digital and analog audio solutions, and a developer of e-commerce software, announced today the availability of iQ for RealNetworks'RealJukebox and RealJukebox Plus users. When added to the RealJukebox or RealJukebox Plus, iQ brings a bigger, bolder sound environment to your desktop, using your existing sound equipment. iQ is available immediately and can be purchased directly from www.qsound.com and www.realstore.com.

"RealNetworks has set the standard for easy to use, high-quality downloadable music players and QSound has set the standard of dramatically improving Internet audio quality." said David Gallagher, President and CEO of QSound Labs. "QSound is proud that RealNetworks has chosen iQ for it's RealJukebox and RealJukebox Plus. RealJukebox users can now download iQ and experience the most vibrant audio available on the Internet today."

"iQ is an easy-to-use enhancement for RealJukebox and RealJukebox Plus, allowing users to achieve 3D audio," said Jed Lewison, Director of e-Commerce Marketing, RealNetworks, Inc. "RealNetworks is pleased to continue its relationship with QSound in distributing iQ on www.realstore.com."

About iQ

iQ is a compact 3D audio software package that automatically synthesizes a remarkable 3D stereo image from mono audio and dramatically changes current Web audio into a virtual surround sound environment.

RealNetworks, RealJukebox and RealJukebox Plus are trademarks or registered
trademarks of RealNetworks, Inc.

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, patent-protected audio solutions that include virtual surround sound, positional audio and stereo enhancement for the consumer electronics, multimedia PC, Internet and healthcare markets. The Company's cutting-edge audio technologies create 3D audio environments, allowing consumers to enjoy stereo surround sound from
just two speakers. For more information, visit our Web site at http://www.qsound.com.

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This release contains forward-looking statements within the meaning of the Private Securities Litigation Act of 1995 concerning, among other things, the anticipated introduction of new products and future financial results, including statements made by Mr. Gallagher. 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 the Company's ability to carry out its business strategy and marketing plans, availability of sufficient resources for the Company to timely and cost effectively carry out the Company's business plans and strategies, dependence on the performance of third
parties who have agreed to market the Company's technologies, dependence on intellectual property, uncertainties relating to product development and commercial introduction, rapid technological change and competition, continued growth of the Internet, general economic and business conditions and other risks which may be detailed from time to time in the Company's periodic reports filed with the Securities and Exchange 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.