SpatiaLight Announces that Skyworth to Begin Immediate Production of LCoS Televisions

SpatiaLight Announces that Skyworth to Begin Immediate Production of LCoS Televisions

NOVATO, Calif., Feb. 21 /PRNewswire-FirstCall/ -- SpatiaLight, Inc. (NASDAQ:HDTV), a leading manufacturer of state of the art liquid crystal on silicon (LCoS) microdisplays, announced that Skyworth Display has informed SpatiaLight that it will begin immediate production of 60" LCoS high definition rear projection televisions based on SpatiaLight's 1280x960p LCoS imagers.

Rawdon Cheung, Vice President of Skyworth Display, has informed SpatiaLight that Skyworth has qualified its fully integrated 60" LCoS high definition rear projection television for immediate volume production. Additionally, Skyworth has begun delivery to its professional customers, and plans to ramp to mass production quantities as quickly as possible. The 60" LCOS RPTV is powered by SpatiaLight's T-1, 1280x960p three panel LCoS microdisplay solution.

Skyworth intends to upgrade its LCoS rear projection television line to be powered by SpatiaLight's T-3, 1920 x 1080p three panel LCoS microdisplay solution in the near future. Currently, light engine selection, electronics design and implementation plans are being prepared.

Dr. David Hakala, SpatiaLight's Chief Operating Officer, commented, "SpatiaLight is pleased to see Skyworth begin production and delivery of LCoS televisions based on our T-1 microdisplays. We look forward to supporting them in their efforts as they begin to ramp toward higher volumes."

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 2006 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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