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The speakers are on display in the Spatializer Audio Laboratories booth (No. 5610) and in the MedianiX demonstration suite (Boardwalk Casino/Holiday Inn, suite 1767) at the Comdex trade show here.

``Golden Regent ships 5 million speaker systems a year and has 600 outlets in China, making it a major power in the region,'' said John Lee, vice president of sales and marketing at MedianiX. ``We're very excited that they have chosen to use our audio processor in their products, and look forward to helping them make advanced, DSP-based audio technology available in China. We're equally pleased to be involved in the introduction of their outstanding product line to the U.S.''

MedianiX is a leading supplier of single-chip Dolby(r) Pro Logic(tm) audio processors, which are particularly well-suited for systems designed for the Chinese market, where Pro Logic has emerged as the dominant digital audio technology. The MED25009 to be used by Golden Regent incorporates an on-chip Dolby Pro Logic decoder front-end and a Spatializer N-2-2 post-processor. N-2-2 is a Dolby-certified post-processing algorithm that accurately simulates the full three-dimensional, 5.1-speaker Dolby Pro Logic soundfield with just two speakers.

``The Spatializer virtualizing technology is the ideal solution for our application,'' said Carol Ma, vice president of Golden Regent. ``It not only creates the impression of multiple speakers using only two physical speakers, but is also the most accurate at positioning sound effects in the places the recording engineer intended. The MedianiX chip provides this technology in a small form factor, with on-chip firmware that eliminated any DSP code development on our part and dramatically cut our time to market.''

``We are pleased that Golden Regent, a well-respected name in the Chinese speaker system market, has chosen to include our technologies in its multimedia PC products,'' commented Peter Birch, senior vice president of sales and marketing for Spatializer. ``This is an important design win in our strategy to penetrate the Chinese market and establish the Spatializer brand with the same prominence in China that it enjoys in Japan and the U.S.''

Spatializer N-2-2 Audio Technology

Based on the main psychoacoustic cue people use to determine the position of sounds in space -- HRTFs (Head Related Transfer Functions) -- Spatializer N-2-2 technology creates the illusion of multiple speakers surrounding the listener. To make N-2-2 appropriate for all applications, Spatializer developed optimizing techniques that expand the ``sweet spot'' -- the area in which the 3D effect is most discernible -- while creating ``virtual speakers'' that maintain accurate sound effects localization and positioning.

Golden Regent

Headquartered in Hong Kong, Golden Regent Investment Ltd. was founded in 1989 as an OEM manufacturer of magnetic-based electronic components. It has created families of products, including multimedia PC and home theater speaker systems and peripherals, under the NICOLE brand name. Today, Golden Regent is a leading manufacturer and recognized quality leader in the multimedia PC and home audio industries. Further information about Golden Regent and its products is available on the World Wide Web at (http://www.gr-nicole.com).

Spatializer Audio Laboratories

Spatializer Audio Laboratories, Inc. (Nasdaq:SPAZ - news) is a leading developer, licenser 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, video and DVD products from global brand leaders, and in PC multimedia systems and peripherals.

Spatializer stock is traded on the NASDAQ Small Cap Market System under the symbol ``SPAZ.'' The company is headquartered in Woodland Hills, Calif., and has marketing, engineering and R&D facilities in Mountain View, Calif., and Tokyo, Japan. Further information about Spatializer and its products is available on the World Wide Web at (http://www.spatializer.com).

MedianiX Semiconductor

MedianiX Semiconductor, headquartered in Mountain View, Calif., is a leading provider of silicon solutions for digital consumer audio products. It provides the industry's widest range of single-chip digital 3D audio processors for ``personal electronics,'' which encompasses television sets, home-theater A/V receivers, add-on computer speakers and multimedia personal computers. Based on proprietary DSP technology and standards-compliant digital audio algorithms, MedianiX audio processors provide consumer product OEMs with an array of choices that is not available from any other audio chip supplier.

The company has established alliances and licensing arrangements with all of the leading audio processing technology companies, including Dolby Laboratories and Spatializer Audio Laboratories, Inc. MedianiX implements the digital audio algorithms developed by these companies in silicon, producing integrated semiconductor- and firmware-based digital products that are optimized for audio applications in consumer electronics and personal computers. Further information about MedianiX and its products is available on the World Wide Web at (http://www.medianix.com).

Note to Editors:

• (tm) N-2-2 is a trademark of Spatializer Audio Laboratories, Inc., and Pro Logic is a trademark of Dolby Laboratories.
• (r) Dolby is a registered trademark of Dolby Laboratories, Spatializer is a registered trademark of Spatializer Audio Laboratories, Inc., and NICOLE is a registered trademark of Golden Regent Investment Limited.

Contact:

     MedianiX Semiconductor, Inc.

     John Lee, 650/960-7081 ext. 238

     or

     FS Communications

     Joe Fowler, 650/691-1488

     or

     Golden Regent Investment Ltd.

     Carol Ma, 852-2-481-5680

     or

     Spatializer Audio Laboratories, Inc.

     Henry Mandell, 818/227-3370