A novel pulse neural network model for sound localization has been proposed. Our model is based on the physiological auditory nervous system. Human beings can perceive the sound direction using inter-aural time difference (ILD) and inter-aural level difference (ILD) of two sounds. The model extracts these features using only pulse train information. The model is divided roughly into three sections: preprocessing for input signals; transforming continuous signals to pulse trains; and extracting features. The last section consists of two parts: ITD extractor and ILD extractor. Both extractors are implemented using a pulse neuron model. They have the same network structure, differing only in terms of parameters and arrangements of the pulse neuron model. The pulse neuron model receives pulse trains and outputs a pulse train. Because the pulses have only simple informations, their data structures are very simple and clear. Thus, a strict design is not required for the implementation of the model. These advantages are profitable for realizing this model by hardware. A computer simulation has demonstrated that time and level differences between two signals have been successfully extracted by the model.