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Spatializer ((environ)) Technology Delivers Startling and Immersive Surround Sound to Stereo Polyphonic Ring Tones, Music and Games Through Closely Spaced Speakers

To accommodate the efficient form factor of today's cellular handset or other mobile devices, Spatializer ((environ)) is designed to deliver maximum performance when micro-speakers are mounted closely together and to help compensate for the more limited dynamic range as compared with standard size speakers. Through a combination of audio space expansion and bass reinforcement with low power and other resource requirements, Spatializer ((environ)) technology helps solve two of the leading challenges facing ultra-compact, speaker-based mobile audio devices.

Spatializer ((environ)) is also positioned to capitalize on the expected availability of downloadable music by the original artist as a cell phone ringer as well as expanded game capability. Anticipating this development, leading cell phone manufacturers are beginning to include two speakers with stereophonic capability in their next generation handsets. Spatializer ((environ)) helps smooth the transition of the cell phone from a communication device to a comprehensive entertainment platform.

"From a business perspective, we've entered a market with a relevant and deliverable product where over 450 million cell phones are sold annually ... there's real potential for growth," stated Spatializer Chairman and CEO Henry R. Mandell. "From the audio enthusiast's perspective, now, one can hear ring tones that really impress and listen to music as if you're in your own private listening space. Cell phones, PDAs and indeed, all twin-speaker devices delivering personal audio can now deliver an audio experience well beyond what one expects from such small devices. Combined with our well respected Spatializer Natural Headphone, Spatializer delivers a one-two punch for personal audio ... in a way that will make people really say wow!" Mandell continued.

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 and video products from global brand leaders including Toshiba, JVC, Panasonic, 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.

NOTE: Desper Products Inc. is a wholly owned subsidiary of Spatializer Audio Laboratories Inc. Spatializer® is a registered trademark and Spatializer environ(TM) and Spatializer Natural Headphone(TM), are trademarks of Desper Products Inc. All other trademarks are the property of their respective owners.