Press Release
QSound Labs Presents Business Update at Shareholders Meeting
Management confident in growth strategy presented at last years' meeting
CALGARY, CANADA - June 19, 2003 - QSound Labs, Inc. (NASDAQ: QSND), a leading supplier of
software solutions for audio, voice and e-commerce, held its Annual Meeting of Shareholders
today. At the formal portion of the meeting, resolutions re-electing the board of directors
and appointing the auditors were passed. Afterwards, CEO David Gallagher provided an update
on the Company's current business opportunities.
"At last year's shareholders meeting, management outlined its product roadmap for growth given
the market conditions then prevailing," stated Gallagher. "In the past twelve months, we have
focussed on executing this strategy. Significant progress has been made in our audio business
through in-house product development and the recent IP telephony technology acquisition has added
to our product portfolio. The Company has strengthened its financial position as evidenced by its
financial reports over the past year and is now in a position to benefit from the product development
efforts of the past year."
Audio Business Unit:
"Today, we offer audio solutions to four different industries; Consumer Electronics, PC Hardware;
Streaming/Digital Media & Mobile/Handheld Devices. The catalysts for QSound's revenue growth in each
of these markets are independent of each other but in general terms the consumer's adoption, use and
comfort in dealing with digital media is a common growth driver to each of them," continued Gallagher.
"In the CE market, consumers have embraced DVD technology and QSound has benefited by licensing to
well known brands such as Toshiba, Sanyo & RCA as well as major OEMs based in China. The emergence
of DVD recorders and digital amplifiers will provide new opportunities in this sector. Our
development agreement with Philips, to develop PC software audio solutions, positions us well in an
industry that ships in excess of 100 million units annually. At a retail level in Europe & North America,
the Philips branded products have been well received; the challenge continues to be gaining an initial
design win from one of the major PC OEMs. Efforts to achieve this continue."
"Our software for the streaming media market continues to sell well, primarily due to our distribution
agreement with RealNetworks. For the mobile marketplace, the Company recently introduced microQ, a
software engine optimized for playback of ringtones, enhanced music and game audio on cellular phones
and PDAs. Marketing efforts for the remainder of this year will be focussed on this product. For more
information, please visit www.qsound.com."
IP Telephony Business Unit:
"The Company has established a new business unit to market the recently acquired IP telephony
technology. Management believes that this is an opportune time to be entering this market," added
Gallagher. "Our customer support and product development competencies will assist us in building
on the existing customer base of dealers and OEMs. Our focus will be on adding value through
software for various Internet telephony applications. Since the acquisition we have established
relationships with hardware vendors to ensure full support for our distribution channel. For more
information, please visit www.qtelnet.com."
eCommerce Business Unit:
"QCommerce continues to operate on a positive cash flow basis but as stated at last year's AGM,
the optimum method to achieve growth is through acquisition. During the year, no attempts were made
to acquire similar companies as the Company opted strategically to preserve cash. For more information,
please visit www.qcommerce.com."
This release contains
forward-looking statements within the meaning of the Private Securities
Litigation Act of 1995 concerning, among other things, expectation of
increasing royalties from existing licensees including Philips, continued
self-sustainment from QSound's audio and e-commerce businesses, and
QSound's business relationship with a private company including planned
development and commercial introduction of new products for telephony and
networking industries. Investors are cautioned that such forward-looking
statements involve risk and uncertainties, which could cause actual
results, performance or achievements of QSound, 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
QSound, successful product development, introduction and acceptance,
QSound'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
QSound's periodic reports filed with the Securities and Exchange
Commission. Forward-looking statements are based on the current
expectations, projections and opinions of QSound's management, and QSound
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.