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Introduction of Two New DVD Players Brings Total Product Line Up to Five For The Global Market

Spatializer N-2-2 delivers an astonishing virtual surround sound experience from just two speakers, instead of the five speakers normally required. The combination of cost, space requirements and the complexity of set-up often makes it difficult for consumers to justify a full five speaker plus subwoofer playback system. By utilizing a series of proprietary real-time algorithms, spatial cues are created that convince the listener's ear and brain that a sound is coming from a location other than the speaker. The result is an audio experience, which retains the spatial realism of the full home theater set-up without the expense and complication.

``Our latest design win for the entire Hitachi DVD Player line steps up the pace in our drive to be the de facto standard in virtual audio enhancement technology,'' said Henry R. Mandell, Chairman and Chief Executive Officer of Spatializer Audio Laboratories, Inc. ``We are pleased to expand our long standing relationship with Hitachi, Ltd. which is highly respected around the world for its superb quality and innovation. Hitachi DVD Players have quickly made a strong impact in the market and we look forward to working with them to provide their customers with the ultimate in audio enhancement solutions.''

``We are most enthusiastic about the launch of our two new DVD Players to join our extended series of digital home entertainment products. We are pleased to have Spatializer N-2-2 providing an exciting virtual surround sound solution for our customers. This technology provides a very realistic and immersive listening experience for those without extensive multiple speaker configurations,'' said Mr. Hiroshi Shibata, Group Manager, Video of Hitachi America, Ltd.

Hitachi, Ltd., headquartered in Tokyo, Japan is one of the world's leading global electronics companies, with fiscal 1999 consolidated sales (ended March 31, 2000) of $75.5 billion. The company, with more than 337,000 employees around the world, manufactures and markets a wide range of products, including computers, semiconductors, consumer products and power and industrial equipment.

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, video and DVD products from global brand leaders including Toshiba, JVC, Panasonic, Hitachi, Samsung, Acer, Sharp, Sanyo, Goldstar, Emerson, Zenith and Proton, in PC multimedia systems and peripherals from Apple, Dell, Gateway, Hewlett Packard, Sony, Fujitsu, Seiko-Epson, NEC, Micron and Labtec, in silicon from Matsushita, New Japan Radio Corporation, ESS, Zoran, Motorola, C-Cube, OnChip Systems, and Acer Laboratories Inc, and in software compatible with MP3 players such as WinAmp and XingMP3.

Spatializer stock is traded on the OTC Bulletin Board under the symbol ``SPAZ.'' The company is headquartered in Woodland Hills, Calif. and has marketing, engineering and R&D facilities in Santa Clara, Calif. and Tokyo. Further information may be obtained from Spatializer's SEC filings, and by contacting the Company's Investor Relations Department toll-free at 888-825-0743 or by writing to spaz@mdcgroup.com. For Media inquiries please contact Marken Communications at 408-986-0100 or by writing to Andy@MarkenCom.com.

Safe Harbor Act Statement Under the Private Securities Litigation Reform Act of 1995: Certain information in this news release, including the comments by Mr. Mandell in paragraph three, 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 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.

Notices: Desper Products, Inc. is a wholly owned subsidiary of Spatializer Audio Laboratories, Inc. Spatializer® is a registered trademark and Spatializer N-2-2(TM) is a trademark of Desper Products, Inc. Copyright (C) 2000 Spatializer Audio Laboratories, Inc.

SOURCE: Spatializer Audio Laboratories Inc.