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Spatializer Interactive(TM) Brings Living Room Audio Quality to Interactive Platforms

"Spatializer is well respected in the consumer electronics market, with our software solutions adopted by industry leaders such as JVC, Samsung, Sanyo and Toshiba and our focus will remain there," stated Henry R. Mandell, Chairman and CEO of Spatializer Audio Laboratories, Inc. "However, the paradigm shift created by the convergence of computer technology and entertainment results in an opportunity that we cannot ignore. PC and game devices were simply not designed to deliver the living room quality audio that consumers demand. Spatializer technology can help bridge this performance gap and Spatializer Interactive is the vehicle to reach these consumers and suppliers alike, using a wide array of powerful marketing channels."

"Spatializer Audio Laboratories investment in Spatializer Interactive shows our commitment to bring our award winning technologies to new markets. We continue to help drive the digital audio revolution and in this regard, by offering great audio on general purpose processors found in game, personal computing, and internet connected platforms," stated Michael Wood, Executive Vice President of Business Development and Chief Operating Officer. "As we focus on these new areas, we welcome Chris Pfaff to Spatializer as our senior manager, Business Development of Spatializer Interactive. Chris brings a wealth of market knowledge and industry contacts in this particular market segment."

Chris Pfaff will be spearheading channel alliances, co-marketing opportunities and consumer direct initiatives. In addition, he will work with the Spatializer engineering team to create or adopt audio solutions particularly relevant for the PC, Internet Music and gaming segments.

Spatializer Audio Laboratories will be demonstrating its suite of audio technologies targeted at game, personal computing, and internet connected platforms at the iHollywood Forum's Digital Media Summit being held today and tomorrow in Universal City, CA.

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. 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 and Mr. Wood 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.