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Spatializer Audio Solutions Help OEMs Differentiate JVC's New DVD/CD/VHS Combo Player

The HR-XVX1U is a DVD player integrated with VHS Hi-Fi Video. It is a complete entertainment package, combining the high definition video and high quality of DVD, the familiarity and pervasiveness of VHS with the versatility of various formats of CD playback. In addition, the unit incorporates a broadcast tuner.

"We are excited to incorporate our virtual surround technology into the JVC DVD platform for the first time," stated Henry R. Mandell, chairman and chief executive officer of Spatializer Audio Laboratories, Inc. "JVC is a leading manufacturer of high quality audio and video products and we are honored that they have selected our audio enhancement solutions for this popular product format. We look forward to expanding our relationship with JVC in the future and to provide product differentiating audio solutions."

In commenting on JVC's selection of Spatializer, JVC VCR Product Planning Dept. stated, "We place a high priority on quality, features and performance that help set our new HR-XVC1U apart from the competition. We easily appreciated the impact of Spatializer audio technology on our customers' listening experience and are pleased to include this solution in our new product. We look forward to a mutually beneficial relationship."

About JVC

VICTOR COMPANY OF JAPAN, LIMITED (JVC) is a leading international electronics company that has achieved success by combining its excellence in audio and video hardware with its global-scale software business, and also has a growing reputation for its professional equipment. JVC business lines are Video, Audio, TV, Entertainment, Information-related Equipment and Component Devices. Every endeavor still continues to actively focus on discovering a new digital and network society of the 21st century. Headquartered in Yokohama, Japan, JVC was founded in 1927.

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 products from Toshiba, JVC, Panasonic, Hitachi, Samsung, Sharp, SANYO, Fisher and Kenwood and in PC multimedia systems from Apple. Spatializer stock is traded on the OTC Bulletin Board under the symbol: SPAZ. The company is headquartered in Santa Clara, CA, with executive and marketing offices in Westlake Village, CA and 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 Mr. Mandell 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® is a registered trademark of Desper Products Inc. All other trademarks are the property of their respective owners. Copyright (C) 2002 Spatializer Audio Laboratories, Inc