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Spatializer Provides Virtual Surround Technology in Cutting Edge RD-X2 DVD Recorder Now Shipping

Toshiba's new RD-X2 recorder allows consumers to record one, two, four, or six hours of content on a single DVD-R/-RAM disc. The recorder can create DVD-Video format on DVD-R media, as well as DVD-VR format on DVD-RAM media. Data files stored in DVD-Video format can be played back on most DVD players on the market. In addition to enabling cut, assemble, and edit capabilities, the RD-X2 recorder provides reliable authoring to a DVD disc. The 80-gigabyte hard disc drive delivers personal video recording (PVR) time-shifting capabilities that allow consumers to time shift live television programs as well as record programs like traditional VCRs.

"The incorporation of Spatializer N-2-2 into Toshiba's next generation DVD recorder with hard disc drive demonstrates the value placed on Spatializer premium audio enhancement technology for advanced home entertainment platforms," stated Henry R. Mandell, chairman and chief executive officer of Spatializer Audio Laboratories, Inc. "This confirms our belief that our array of audio solutions are completely apropos for the wave of new digital based products that are coming to market. The RD-X2 sets a new standard in terms of overall quality, feature set and performance. We are honored that Toshiba has again selected us to provide the virtual surround sound solution for this emerging product platform."

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, Sharp, SANYO, SONICblue, Fisher and Kenwood, 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 Logic, Tvia, Genesis and Acer Laboratories Inc, and in MP3 players such as SANYO 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 executive and marketing offices in Westlake Village, CA and 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.

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® N-2-2 is a trademark and Spatializer® is a registered trademark of Desper Products Inc. All other trademarks are the property of their respective owners. Copyright (C) 2002 Spatializer Audio Laboratories, Inc.

SOURCE: Spatializer Audio Laboratories, Inc.