Press Release
QSound Labs and Philips Enter Into Joint Development Agreement to Deliver Innovative Digital Audio Solutions For PC and CE Market
CALGARY, CANADA and SUNNYVALE, CALIFORNIA - April 30, 2002 - QSound Labs, Inc. (NASDAQ: QSND), a leading developer of audio, e-commerce and multimedia software products, and Royal Philips Electronics of the Netherlands (AEX: PHI, NYSE: PHG), one of the world’s largest electronics companies, today announced they have entered into a joint development agreement to produce innovative digital audio solutions targeted for the multi-channel soundcard market and other consumer electronics products.
Under the new agreement, Philips will combine its proven sound
expertise, which has earned it a leading position in the soundcard
and overall CE markets, with QSound’s unique audio enhancement
technologies and award-winning audio-processing algorithms. As a
result, Philips will be able to speed time to market of
best-of-breed digital audio products for both the PC and CE space,
ultimately delivering advanced surround-sound capabilities designed
to enhance the user’s audio experience. Specifically, QSound offers
unmatched technology that will, in turn, allow Philips to transform
ordinary stereo music, games and movies to true surround-sound
mediums—helping further differentiate Philips’ products from the
competition.
According to Matt Medeiros, president and CEO of Philips’ Components
division, “Today’s announcement reinforces our commitment to
investing in core digital technologies by collaborating with leading
technology companies, together with leveraging our internal
strengths in the audio space, to deliver industry’s most compelling
solutions. Specifically, this agreement is part of our strategy to
further entrench our position in the multimedia audio space, where
QSound is a long-standing player with a demonstrated history of
innovation.”
"We’re pleased to partner with Philips in this undertaking," said
David Gallagher, president and CEO of QSound. "With Internet users
in the United States alone estimated to reach 165 million by the end
of this year, people are using their computers as multimedia centers
more than ever before. Coupling our expertise in audio enhancements
with Philips’ technology and consumer electronics expertise will
enable consumers to take full advantage of Internet audio, in ways
they could never have imagined."
Illustrating the companies’ successful relationship to date, Philips
has already leveraged QSound’s technology in three of its sound
cards: Rhythmic Edge™, Seismic Edge™ and Acoustic Edge™. The
Acoustic Edge soundcard has since gained acclaim for its immersive
5.1 channel output and has won a number of industry accolades,
including CNET Editors' Choice Award, Gamers Depot Sound Card of the
Year Award, and Neoseeker Editors’ Choice Award.
Financial details surrounding the joint development agreement were
not disclosed.
About Philips:
Royal Philips Electronics of the Netherlands is one of the world’s
biggest electronics companies and Europe’s largest, with sales of
$28.8 billion (EUR 32.3 billion) in 2001. It is a global leader in
color television sets, lighting, electric shavers, medical
diagnostic imaging and patient monitoring, and one-chip TV products.
Its 186,000 employees in more than 60 countries are active in the
areas of lighting, consumer electronics, domestic appliances,
components, semiconductors, and medical systems. Philips is quoted
on the NYSE (symbol: PHG), London, Frankfurt, Amsterdam and other
stock exchanges. News from Philips is located at
www.news.philips.com.
ATTN Broadcasters: Philips b-roll (via beta copy, fiber transmission
and satellite feed), is available 24/7 from PR NEWSWIRE
(212-375-0021).
This release contains forward-looking statements within the meaning of the Private Securities Litigation Act of 1995 concerning, among other things, QSound Labs’ business relationship with Philips and the development and commercial introduction of new, improved 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 loss of relationships with companies that do business with the Company, successful product development, introduction and acceptance , the Company’s ability to carry out its business strategy and marketing plans, including availability of sufficient resources to do so timely and cost effectively, dependence on intellectual property, rapid technological change, competition, general economic and business conditions, continued growth of the Internet and other risks 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.