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Spatializer to Demonstrate its Audio Solutions During CES

Designed to offer high quality, multi-channel audio, even from mono or stereo sources, Spatializer enCompass AV(TM) creates a spherical sound field incorporating as many as eight speakers simultaneously. Spatializer enCompass AV will be demonstrated during CES on the ZSPTM Digital Audio Platform in the LSI Logic suite at the Embassy Suites, 3600 Paradise Road, adjacent to the CES main convention hall. Demonstrations will be conducted by appointment only.

"Spatializer Audio Laboratories is proud to have been chosen to be a part of LSI Logic's ZSP Digital Audio Platform initiative," stated Henry R. Mandell, Chairman and CEO of Spatializer Audio Laboratories, Inc. "Not only does this allow DTV, Set Top Box and DVD manufacturers a sharp leading edge in audio enhancement, it also delivers to game platform OEMs as well as developers a new option in providing truly heart pounding audio to match the impressively realistic video of today's gaming platforms."

Spatializer Audio Laboratories, Inc. will be demonstrating its audio enhancement solutions during CES at the Luxor Hotel, 3800 Las Vegas Blvd. South, strictly by advance appointment only. Appointments may be scheduled by calling the Spatializer Audio Laboratories, Inc. Marketing Department at 408-296-0600 ext. 200.

About Spatializer Audio Laboratories, Inc.

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 and video products from global brand leaders including Toshiba, JVC, Panasonic, Hitachi, Samsung, Sharp and Sanyo, among others. Spatializer stock is traded on the OTC Bulletin Board under the symbol: SPAZ. The company is headquartered in Santa Clara, CA, with executive offices in Westlake Village, CA and 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 press release, including those by Messrs. Mandell 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 enCompass AVTM is a trademark of Desper Products Inc. LSI Logic and ZSP are trademarks or registered trademarks of LSI Logic Corporation.