SpatiaLight Announces First Quarter 2006 Results

SpatiaLight Announces First Quarter 2006 Results

NOVATO, Calif., May 10 /PRNewswire-FirstCall/ -- SpatiaLight, Inc. (NASDAQ:HDTV), a developer and manufacturer of ultra high-resolution microdisplays for the high definition television market, today reported its results for the first quarter of 2006.

For the quarter ended March 31, 2006, SpatiaLight had revenues of $85,694, as compared with revenues of $97,759 for the same period in 2005. Net loss for the quarter was $5.6 million, compared with a net loss of $2.1 million for the same period in 2005. Net loss per share was $(0.15) for the quarter, compared with $(0.06) for the same period in 2005.

SpatiaLight ended the first quarter with cash and cash equivalents of $1,387,411, working capital of $2.4 million, stockholders' deficit of $8.3 million and $10.5 million in long-term convertible debt, net of applicable discounts.

Webcast Details

SpatiaLight will hold a public audio webcast at 5:00 p.m. EDT on Wednesday, May 10, 2006, with management of the Company to discuss details regarding the Company's performance for the first quarter and other forward-looking information. The session may be accessed at www.spatialight.com under the link for Investors. The webcast will be available for replay through the close of business on May 17, 2006.

About SpatiaLight

SpatiaLight, Inc., founded in 1989, manufactures high-resolution Liquid Crystal on Silicon (LCoS) microdisplays for use in high definition televisions and other display applications. Providing resolution of more than 6.2 million pixels, each SpatiaLight LCoS set incorporates three proprietary imagEngine(TM) microdisplays. The company manufactures its products at its facility in South Korea. The company is committed to developing microdisplay technologies that will be 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 visit the company's website at: http://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 Form 10-K/A and Form 10-Q.

Source: SpatiaLight, Inc.

CONTACT: Ted Banzhaf, Executive Vice President of SpatiaLight, Inc.,
+1-415-883-1693, or ir@spatialight.com

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

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