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Design Win Marks Spatializer N-2-2 's Expansion into the DVD-RW Player Market

LG Electronics, a leading manufacturer of consumer electronics, is showing the new DVD-RW recorder this week at the Korean Electronics Show (KES), in Seoul, Korea and plans to have the product available in 2001.

``We're delighted to mark Spatializer N-2-2's entry into the DVD-RW player segment with a market leader like LG Electronics,'' said Henry R. Mandell, Chairman and Chief Executive Officer of Spatializer Audio Laboratories. ``Industry analysts project that sales of DVD-RW recorders will double annually over the next five years. Eventually, DVD recorders will be as pervasive as the VCR, and indeed, will ultimately replace it. LG is a leading manufacturer of DVD players and one of the first to offer a DVD-RW recorder. With the LG DVD-RW, consumers will have a single solution for DVD playback and recording digital videos. We're pleased to extend our market penetration at LG, and to enter the DVD-RW market with this new design win.''

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, video and DVD products from global brand leaders including Toshiba, JVC, Panasonic, Hitachi, Samsung, Acer, Sharp, Sanyo, LG Electronics, 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 embedded with RISC cores from MIPS Technologies .

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 . Ziva-4 is a registered trademark of C-Cube Microsystems. Dolby Digital is a registered trademark of Dolby Laboratories.

SOURCE: Spatializer Audio Laboratories Inc.