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SANYO Announces its New Fisher DVD-SL30 DVD Player, the First to be Equipped with Spatializer N-2-2(TM), the De Facto Standard in DVD Virtual Surround Sound

The DVD-SL30 DVD Player also features a 10-bit Video D/A converter, 96kHz 24-bit Audio D/A converter, Dolby Digital & DTS optical output, TVGuardian, Joystick remote with multi-brand TV control, various trick play (Last Memory, Picture Mode, etc.) and is disc compatible on DVD Video/CD/CD-R/CD-RW/MP3/DVD-R.

``We are honored and gratified to so quickly expand our relationship with SANYO Electric Co., Ltd., this time in their DVD Player line,'' remarked Henry R. Mandell, Chairman and CEO of Spatializer Audio Laboratories. ``SANYO is a highly respected world leader in consumer electronics. During my visit to their facility in Osaka last year, I was very impressed by how seriously they approach the audio capability of their products and the obvious high importance they place on delivering a home theatre experience that delights their customers. By selecting Spatializer N-2-2, the de facto standard in DVD virtual surround, over generic solutions, SANYO has once again expressed their commitment to delivering a superior feature set and customer experience. ''

Spatializer N-2-2(TM) enables multi-channel virtual surround sound from two conventional speakers or headphones, instead of the standard 5.1 (or more) speakers normally required. The combination of cost, space requirements and a complex set-up process often make it difficult for consumers to justify a full surround speaker system. The Spatializer N-2-2 solution retains the spatial realism of the full home theater setups, while reducing the expense and expanse for multi-speaker playback. Spatializer has developed proprietary optimizing techniques that allow Spatializer N-2-2 to create both a very wide, deep and robust ``sweet spot'', or optimal listening area, while also retaining excellent sound imaging or positioning capabilities. Competitive solutions often sacrifice one for the other, or in the case of free solutions, do a poor job of virtualization. Spatializer N-2-2 was also designed to automatically detect and enhance stereo, whether it is a movie soundtrack or streamed digital audio, providing a dramatic surround sound effect regardless of input. Spatializer N-2-2 is the de facto standard in DVD virtual surround sound, used in more than 10 million DVD players world-wide.

Tsuneharu Tamatani, General Manager of SANYO Technosound Co., Ltd. said `` SANYO's objective is to provide our customers with the most satisfying product experience. Therefore, we selected Spatializer N-2-2 because of the excellent virtual surround sound experience it delivers. Other options simply were not as impressive and for our customers, that was not good enough. ''

About SANYO Electric Co., Ltd.

SANYO Electric Co., Ltd., is a global leader of consumer and commercial electronics, including multimedia and telecommunication products. The SANYO group's businesses cover a broad range of Multimedia & Information products, Home Appliances, Industrial and Commercial Equipment, Electronic Devices, Batteries and other products. The SANYO Group with sales of $17 billion (As of March 31, 2001) is truly an international organization consisting of 156 companies employing over 110,000 employees globally. http://www.sanyo.co.jp .

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 and Zenith, in PC multimedia systems and peripherals from Apple and Labtec, in silicon from Matsushita, Texas Instruments, Cirrus Logic, New Japan Radio Corporation, Zoran, Motorola, LSI, VM Labs, LinkUp and Acer Laboratories Inc, and in MP3 players such as SANYO and Mpuls3 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 Santa Clara, CA, with marketing offices in Tokyo, Japan. Further information may be obtained from the company's web site, http://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 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 and Spatializer N-2-2.TM is a trademark of Desper Products Inc. All other trademarks are the property of their respective owners.

SOURCE: Spatializer Audio Laboratories Inc.