The NASDAQ Stock Market announced today that it will delist the common stock of QSound Labs, Inc. QSound Labs's stock was suspended on April 03, 2009 and has not traded on NASDAQ since that time. NASDAQ will file a Form 25 with the Securities and Exchange Commission to complete the delisting. The delisting becomes effective ten days after the Form 25 is filed.

QSound Labs Inc. reported that it received a NASDAQ Staff Determination letter on March 25, 2009, indicating that the Company fails to comply with the minimum stockholders' equity requirement of $2.5 million as set forth in NASDAQ Marketplace Rule 4310 (c) (3). The Company's securities will be suspended from The NASDAQ Stock Market at the opening of business on April 3, 2008, and a Form 25-NSE will be filed with the Securities and Exchange Commission removing the Company's securities from listing and registration on The NASDAQ Stock Market. The Company does not intend to appeal NASDAQs decision. The Company is considering taking steps to maintain an active trading market for its shares through listing on the TSX Venture Exchange. In addition, QSound's shares may be eligible for quotation on the Pink Sheets by market makers. As previously reported on March 18, 2009, for the first and second quarters of 2009 the Company expects revenues to at least match those earned in the fourth quarter of 2008. The Company has implemented a cost containment program that targets reducing operating expenses by 37% in 2009 as compared to 2008. So for the foreseeable future, the Company expects to be operationally cash flow positive.

QSound Labs Inc. reported unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2008. For the quarter, the company's consolidated revenues reached $500,000 against $304,000 for fourth quarter of 2007. The net loss for the quarter was $410,000 or $0.04 per share as compared to $521,000 or $0.06 per share in the fourth quarter of 2007. Cash flow from operations during the quarter of $42,000 as compared to cash used in operations of $266,523. Operating loss for the quarter was $372,519 as compared to operating loss of $495,873 for the fourth quarter of 2007. Loss before taxes was $402,794 as compared to $511,050 for the fourth quarter of 2007. For the year, the company's consolidated revenues were $1,981,000 compared to $2,379,000 for the same period in 2007, a decrease of 17%. Net loss for the year was $2,209,000 or $0.23 per share as compared to $1,263,000 or $0.13 per share in 2007 due primarily to the decrease in revenue, the sale refund that occurred in the third quarter and higher depreciation and amortization charges. Operating loss for the year was $2,031,302 as compared to $1,178,991 for the year 2007. Loss before taxes was $2,184,640 as compared to $1,220,357 for the year 2007. Cash used in operations for the year was $1,315,625 as compared to $1,247,205 for the year 2007. The company provided earnings guidance for the first and second quarter of 2009. For the first and second quarters, the company expects revenues to at least match those earned in the fourth quarter. The company expects to be cash flow positive on an overall basis for the foreseeable future.

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