SpatiaLight Mass Production Ramp Up Continues as Delivery of LG Televisions to Retailers in Australia Set to Begin

SpatiaLight Mass Production Ramp Up Continues as Delivery of LG Televisions to Retailers in Australia Set to Begin

NOVATO, Calif., Dec. 15 /PRNewswire-FirstCall/ -- SpatiaLight, Inc. (NASDAQ:HDTV), a leading manufacturer of state of the art liquid crystal on silicon (LCoS) microdisplays, announced today that the much anticipated mass production volume rollout of its LCoS Sets to LG, its largest customer, is under way.

Additionally, SpatiaLight is proud to announce that LG has informed SpatiaLight that shipments of televisions powered by its imagers are to commence Tuesday, December 20, 2005, to major retailers in Australia. Recently, LG hosted major product launch events in the following cities to drive retail interest in the new LCoS televisions: Sydney, Melbourne, Perth, Brisbane, Adelaide and the Gold Coast region. The major retailers to initially carry the televisions include: Harvey Norman, The Good Guys, Betta Stores Ltd. and Australia's largest retailer Coles Myer Ltd.

SpatiaLight began delivery of its LCoS imagers intended for mass production of high definition televisions to LG on November 7, 2005. Deliveries are expected to continue weekly throughout the agreed upon initial six-month term.

Dr. Michael S. Jin, SpatiaLight's Chief Technology Officer, commented, "We are extremely happy that production volumes and yields are coming in as expected despite extraordinary testing efforts on these initial batches to ensure exceptional performance. We've committed a large amount of resources to testing to insure that each chipset delivered is of superior quality."

Producing the highest level of HDTV display performance in a consumer product, LG is introducing a new series of 1080p microdisplay rear-projection HDTV's powered by SpatiaLight's LCoS technology. LG has announced that its initial LCoS high definition television product launch will be in the United States, Australia and South Korean markets.

Robert A. Perry, Vice President, Consumer Electronics Sales and Channel Marketing, LG Electronics USA, Inc., recently stated, "LG's first LCoS HDTV, a 71-incher in a sleek package, combines the latest HDTV display and reception technology for an unparalleled entertainment experience."

A press release issued by LG Electronics USA in September from the CEDIA EXPO in Indianapolis described the new LCoS based televisions as "stunning" and stated that, "the big LG is designed to deliver superior HDTV performance using the latest LCoS chip technology."

"We are pleased to see the pipeline begin to fill with televisions powered by our imagers as we ramp toward larger volumes," stated Ted Banzhaf, SpatiaLight's Executive Vice President. "Our production ramp up began last month and we are moving aggressively to escalate production volumes. We look forward to working with LG as it ramps the volume production of its high definition LCoS televisions."

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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