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Economical Virtual Audio Solutions Enhance Home Recording Quality and the Portable Sound Experience

A leading developer, licensor and marketer of next-generation audio technologies for the consumer electronics, computing and entertainment industries, Spatializer continues its long standing commitment to improving the quality of the audio on portable players with the company's Spatializer Natural Headphone(TM) technology. This state of the art technology immerses the headphone wearer into high quality audio while using fewer system resources than competing algorithms. It costs considerably less than comparable recently announced solutions without any sacrifice in quality.

For the business traveler, Spatializer Audio Laboratories will introduce a new set of technologies developed to take advantage of the DVD drives and improved battery life being incorporated into today's portable computing systems. These solutions will provide studio-like audio features, improving the sound of the headphones and small speakers normally associated with notebook PCs. With the resulting high-quality, virtual surround sound system, mobile users can enjoy theater-quality sound whenever, where ever.

"Spatializer Audio Laboratories continues to bring the best in audio quality to the growth platforms in the personal entertainment business," stated Michael Wood, Executive Vice President and Chief Operating Officer. "Some solutions for the PC and notebook markets are simply unrealistically priced to drive widespread penetration. The new products which Spatializer will introduce at COMDEX bring superb headphone and speaker enhancement within the reach of mainstream products."

Spatializer will also unveil enhancements designed to improve the quality of the sound in home recordings. Monaural inputs (single microphone) and noisy environments often mar keepsake recordings such as youth sports, music recitals, weddings and birthdays. These latest advancements will help consumers save their memories with the best possible sound quality, without requiring a significant financial investment.

"Spatializer continues to show its leadership in audio processing with our recording product introduction," continued Mr. Wood. "Many consumer recording products have made great strides in video quality, now Spatializer brings its 16 years of experience to introduce quality audio enhancements for use during recording." Spatializer's commitment and experience in delivering high quality and performance to meet the needs of the OEM remains unwavering and compelling."

Hear the difference at Spatializer's booth #7064 in the Recording DVD Council (RDVDC) pavilion at the Las Vegas Convention Center November 18th through 22nd.

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 and Spatializer Natural Headphone(TM) is a trademark of Desper Products Inc. All other trademarks are the property of their respective owners. Copyright (C) 2002 Spatializer Audio Laboratories, Inc.