SpatiaLight Delivers Production 1080p LCoS Sets to Taiwanese Customer ThinTek

SpatiaLight Delivers Production 1080p LCoS Sets to Taiwanese Customer ThinTek

NOVATO, Calif., Dec. 20 /PRNewswire-FirstCall/ -- SpatiaLight, Inc. (NASDAQ:HDTV), a leading manufacturer of state of the art liquid crystal on silicon (LCoS) microdisplays, announced today that it recently delivered an initial production lot of its 1080p LCoS Sets its customer ThinTek Optronics Corp. for immediate assembly of optical engines to be used in rear projection televisions.

ThinTek, widely recognized as the leading LCoS optical engine designer in Taiwan, has qualified SpatiaLight as their exclusive approved vendor of 1080p LCoS microdisplay panels. ThinTek has completed the design, development and initial manufacturing requirements to begin mass production of its three panel LCoS optical engines specifically designed to incorporate SpatiaLight's 1080p LCoS Sets. ThinTek and SpatiaLight have been collaborating since mid-2004 to develop this 1080p optical engine with associated electronics.

ThinTek intends to actively pursue and attain the largest market share in China and Taiwan as an LCoS optical engine "supplier of choice" to original equipment manufacturers (OEMs). More importantly, SpatiaLight and ThinTek are cooperatively working with multiple prospective OEM customers in Japan and the United States for the production of rear projection high definition LCoS televisions powered by SpatiaLight's proprietary 1920 x 1080p imagers. The ThinTek 1080p optical engine incorporating SpatiaLight's three-panel LCoS Sets represents a turnkey solution that will allow major OEMs to bring product to market on a fast track.

ThinTek has publicly announced that it will exhibit its 1920 x 1080p LCoS platform solution at the January 2006 Consumer Electronics Show in Las Vegas. ThinTek was founded in 2003, with backing from UMC, a leading Taiwanese semiconductor manufacturer and Premier Image Technology Corporation, a leading Taiwanese global image products supplier.

Dr. David Hakala, Chief Operating Officer of SpatiaLight, stated, "Deliveries of our production imagers to ThinTek represents a key step in our business development strategy. Our jointly developed turnkey solution is already commanding substantial interest from prospective Tier One customers and we believe that our ability to deliver production imagers to ThinTek will encourage these prospective customers to move forward with integrating our product into their rear projection television lineups."

About SpatiaLight, Inc.

SpatiaLight, Inc., founded in 1989, manufactures high-resolution LCoS microdisplays for use in high definition televisions and other display applications. Utilizing more than 6.2 million pixels, SpatiaLight's LCoS Sets are comprised of three proprietary SpatiaLight imagEngine(TM) microdisplays. A SpatiaLight display unit, another Company product, is comprised of an LCoS Set fitted onto a light engine. SpatiaLight currently manufactures two models of its LCoS Sets. The newer generation T-3 model has an active matrix of 1920 pixels by 1080 pixels configuration and the T-1 model has an active matrix of 1280 pixels by 960 pixels configuration. SpatiaLight is committed to developing microdisplay technologies that will become the standard for the next generation of high definition televisions and to providing OEMs with the most cost effective, high-resolution microdisplays in the industry. For more information about SpatiaLight, please see the Company website: www.spatialight.com.

Safe Harbor Statement

This news release includes forward-looking statements that reflect SpatiaLight's current expectations about its future results, performance, prospects and opportunities. SpatiaLight has tried to identify these forward-looking statements by using words and phrases such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates," "plan," "should," "typical," "preliminary," "we are confident" or similar expressions. These forward-looking statements are based on information currently available to SpatiaLight and are subject to a number of risks, uncertainties and other factors that could cause SpatiaLight's actual results, performance, prospects or opportunities in the remainder of 2005 and beyond to differ materially from those expressed in, or implied by, these forward-looking statements. These risks and uncertainties are outlined in the Company's filings with the U. S. Securities and Exchange Commission, including its most recent reports on Forms 10-Q and 10-K.

Source: SpatiaLight, Inc.

CONTACT: Ted Banzhaf of SpatiaLight, Inc., +1-415-883-1693, ext. 132

Web site: http://www.spatialight.com/

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