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New Technology Reduces 'Noise' While Adding Immersive Sound

The ideal accompaniment for novice and professional user alike, Audio Alchemy removes distracting environmental noise and features an advanced equalization processor to compensate for frequency response limitations in the audio recording hardware and transducers. In addition, Spatializer Audio Alchemy also performs spatial reconstruction to simulate the original acoustic environment, and normalizes the dynamic range of the digital audio source to a level compatible with home theater environments. Spatializer Audio Alchemy will be available for leading DSPs targeted at Recordable DVD devices as well as for PC applications.

"Being first to market with recordable audio enhancements signals our ongoing leadership and commitment to the Recordable DVD segment," stated Michael Wood, Executive Vice President and Chief Operating Officer. "With prices for home recording, editing and playback products falling rapidly, more and more consumers create their own videos. However, the average camcorder audio inputs often mar keepsake recordings such as youth sports, music recitals, weddings and birthdays with disruptive background noise. With Spatializer's Audio Alchemy," continued Wood, "consumers can enhance their recording experience, automatically saving their memories with clear, enhanced natural immersive sound."

Hear the difference at Spatializer's booth #7064 in the Recording DVD Council (RDVDC) pavilion at the Las Vegas Convention Center November 18th through 22nd.

Availability

Spatializer's Audio Alchemy will be available for third party incorporation into consumer electronics Q1/2003.

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 products from Toshiba, JVC, Panasonic, Hitachi, Samsung, Sharp, SANYO, Fisher and Kenwood and in PC multimedia systems from Apple. 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. Wood 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 Audio AlchemyTM is a trademark of Desper Products Inc. All other trademarks are the property of their respective owners.