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Micronas' Industry Leading TV Audio Processors Now Featuring Spatializer's N-2-2 Ultra for Delivering the Highest Quality Virtual Surround Sound Through Only Two Loudspeakers; HANOVER, Germany and FREIBURG, Germany and SANTA CLARA, Calif., Sept. 10

"We are pleased to cooperate with Micronas, the world's leading manufacturer of highly integrated mixed-signal-chips for consumer applications. Through our new partnership, Spatializer can take advantage of Micronas' excellent reputation as a supplier of advanced audio and video ICs, and expand its customer base into new markets. The response we have received from our mutual customers has been exciting," says Spatializer's Chairman and CEO Henry R. Mandell. "We are now able to provide TV and Stereo manufacturers with our revolutionary digital audio effects that were previously only available on new DVD players. We expect to extend our leadership in the audio enhancement for DVD players market to DSP based TVs."

Mandell explains that with Spatializer N-2-2 Ultra, TVs will have richer, more dynamic sound without having to use more expensive speakers. "With Spatializer's audio enhancement software, TVs and Mini Stereo Systems can deliver audio quality previously only available on more expensive systems," says Mandell.

The scalable Micronas TV audio system solution is based on the digital signal processor (DSP) of the MSP34xy product family. This leading TV audio processor family has gained a market share of 60% worldwide. To process digital audio formats from DVD or digital set-top boxes, the TV audio system can be extended with MAS family co-processors. Used in mid-range to high-end TVs, MAS 3527/9H processors deliver the full cinema sound performance. Spatializer N-2-2 Ultra is employed to transform multi-channel audio (e.g. Dolby Digital(TM)) into a format which can be played back on two TV loudspeakers only, while maintaining the great listening experience of "Virtual Surround Sound". Thus, N-2-2 Ultra allows users to enjoy today's movie soundtracks with "home cinema audio" quality without having to install six loudspeakers in their living room.

The scalability ensured by Micronas' family concept allows TV manufacturers to reduce their development costs dramatically, since mid-range to high-end TVs are all based on the same design. The product line-up is realized by simply plugging in different pin-compatible ICs. With this architecture, existing TV designs can be upgraded to support new audio formats and features very easily.

"We are pleased to offer Spatializer's N-2-2 Ultra in our TV audio DSPs. It is an ideal completion of our feature set and enables our customers to bring to the market cost-effective TV designs with outstanding audio quality," explains Stefan Hepp, Micronas' marketing manager TV Audio & IF. "Micronas established Virtual Surround Sound in the TV market in 1999 and enabled more than 10 million TVs to carry corresponding logos up to now. With Spatializer N-2-2 Ultra, we continue this successful story, now including state-of-the-art audio formats and performance."

About Micronas

Micronas, a semiconductor company group with worldwide operations, is a leading supplier of cutting-edge IC and sensor system solutions for consumer electronics, multimedia and automotive electronics. The holding is headquartered in Zurich (Switzerland). Currently, the Micronas group employs about 1500 people. In 2001, it generated over CHF 566 Million in sales. Micronas develops and holds patents for its own picture- and sound-improvement technologies and also supplies selected licensed technologies. For more information on Micronas and its products, please visit www.micronas.com.

About Spatializer

Spatializer Audio Laboratories Inc. is a leading developer, licensor and marketer of next-generation technologies for the consumer electronics, computing and entertainment industries. The company's advanced audio technology is incorporated into consumer electronics audio, video and DVD products from global brand leaders including Toshiba, JVC, Panasonic, Hitachi, Samsung, Acer, Sharp, Sanyo, LG and Zenith, in PC multimedia systems and peripherals from Apple and Labtec, in silicon with several leading providers , and in software compatible with MP3 players such as WinAmp and embedded with RISC cores from MIPS Technologies. Spatializer stock is traded on the OTC Bulletin Board under the symbol: SPAZ. The company is headquartered in Santa Clara, CA, with marketing offices in Tokyo, Japan. Further information may be obtained from the company's web site, www.spatializer.com, Spatializer's SEC filings, and by contacting the company's Investor Relations Department at 408-296-0600 or by writing to investor@spatializer.com.

Safe Harbor Act Statement Under the Private Securities Litigation Reform Act of 1995: Certain information in this background news release, including the comments by Messrs. Mandell and Hepp in this press release are forward looking statements that are based on management's belief, as well as assumptions made by, and information currently available to management. While the company believes that its expectations are based upon reasonable assumptions, there can be no assurances that the company's financial goals will be realized. Numerous uncertainties and risk factors may affect the company's actual results and may cause results to differ materially from those expressed in forward-looking statements made by or on behalf of the company. These uncertainties and risk factors include, but are not limited to the continued need for additional capital, dependence on new technology and intellectual property, dependence on the PC and consumer electronics industries, dependence on product shipments of third-party licensees, competition and pricing pressures, and other risks detailed from time to time in the company's periodic reports filed with the Securities and Exchange Commission.

NOTE: Desper Products Inc. is a wholly owned subsidiary of Spatializer Audio Laboratories Inc. Spatializer N-2-2 Ultra is a trademark and Spatializer® is a registered trademark of Desper Products Inc. All other trademarks are the property of their respective owners.

Source: Micronas GmbH