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Tuesday December 12, 8:00 am Eastern Time
Press Release
SOURCE: Spatializer Audio Laboratories Inc.
Spatializer Appoints Internix to Expand Distribution of Its Audio Enhancement Software Solutions in Japan
To Support This Initiative, Masaya Ishikawa Named Director, Strategic Relations for Spatializer
SANTA CLARA, Calif., Dec. 12 /PRNewswire/ -- Spatializer Audio Laboratories Inc. (OTC Bulletin Board: SPAZ - news) announced today a strategic initiative with Internix Incorporated, Japan`s leading technical distributor to expand distribution of Spatializer audio enhancement software solutions in Japan. Under the agreement, Internix will market Spatializer`s industry standard Spatializer N-2-2(TM) virtual surround sound technology, Spatializer® 3-D Stereo, and the new Spatializer DigitalFX(TM) audio enhancement software products throughout Japan. Internix, which has 9 sales offices and 200 employees, serves many of the leading Consumer Electronics manufacturers in Japan and is well known for the quality and reliability of the products it represents.

Spatializer N-2-2, the de facto standard for virtual surround sound, provides a realistic and immersive surround sound experience from just two ordinary speakers. Spatializer 3-D Stereo has been widely acclaimed and has been used in over 30 million consumer electronics devices and PCs. Spatializer DigitalFX series of DSP-based audio enhancement algorithms provide astonishingly rich, multi-channel sound for both speakers and headphones. Specifically optimized for key audio devices and platforms, the products include Digital AutoFX(TM) for car stereos, Digital AVFX(TM) for AV receivers, Digital PCFX(TM) for MS Windows®-based computers, Digital TVFX(TM) for digital and analog televisions, and Digital OntheGoFX(TM) for MP3/AAC players, including PDAs and portable digital music devices.

``Our partnership with Internix reinforces Spatializer`s commitment to the Japanese consumer electronics market and signals our drive to quickly increase our visibility and further market penetration,`` said Henry R. Mandell, Chairman and Chief Executive Officer of Spatializer Audio Laboratories. ``We rarely lose in head to head competition, but you have to be highly visible in all potential business areas the digital audio revolution offers in order to compete most effectively,`` he explained. ``Internix distributes DSP and processor components that can easily be complemented with our virtual audio software. As a result, Internix`s efforts on the hardware side will naturally provide opportunities to frequently and effectively promote our audio enhancement solutions.``

Yasu Iwahori, Internix Senior Vice President of Sales agreed and added, ``For over 30 years, Internix has been dealing with the leading electronics companies in Japan and have helped many American companies expand their business here. A key to our success has been our desire for our customers` products to be successful, so we use our knowledge of products and solutions such as Spatializer`s to offer suggestions that will give their products a competitive edge. Since our sales staff members are either trained electronic engineers or have extensive on-the-job experience, they understand our customers` needs and therefore can sell more effectively,`` he noted. ``Once our customers hear the difference that Spatializer technology provides, we will be able to leverage our contacts and expertise for increased design wins in the digital audio market.``

In a related announcement, Spatializer announced that Masaya Ishikawa has been named Director, Strategic Relations for Spatializer. ``Mr. Ishikawa has headed Spatializer`s sales office in Tokyo for several years and was instrumental in introducing Spatializer technology in Japan and for achieving our overall success,`` said Mandell. ``I am very pleased to have a man of Mr. Ishikawa`s integrity and skills to be associated with our Company. This promotion recognizes his accomplishments and positions him to further expand our strategic relationships in Japan.`` In his new position, Mr. Ishikawa will be responsible for managing Spatializer`s key accounts such as Matsushita, Toshiba and Hitachi. He will also provide support and assist in coordinating the company`s efforts with Internix.

About Internix

Founded in 1970, Internix Incorporated ranks as one of Japan`s largest foreign IC stocking representatives/distributors specializing in semiconductor devices, electro-mechanical components, systems and networking products. Supported by state-of-the-art R&D and testing facilities, Internix`s experienced staff provides both clients and customers with the assistance they need to develop and market reliable, high-quality products. For more information, visit the Internix web site at http://www.internix.co.jp

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 audio, video and DVD products from global brand leaders including Toshiba, JVC, Panasonic, Hitachi, Samsung, Acer, Sharp, Sanyo, Goldstar, Emerson, Zenith and Proton, in PC multimedia systems and peripherals from Apple, Dell, Gateway, Hewlett Packard, Sony, Fujitsu, Seiko-Epson, NEC, Micron and Labtec, in silicon from Matsushita, New Japan Radio Corporation, ESS, Zoran, Motorola, C-Cube, VM Labs, and Acer Laboratories Inc, and in software compatible with MP3 players such as WinAmp and embedded with RISC cores from MIPS Technologies.

Spatializer stock is traded on the OTC Bulletin Board under the symbol ``SPAZ.`` The company is headquartered in Woodland Hills, Calif. and has marketing, engineering and R&D facilities in Santa Clara, Calif. and Tokyo. Further information may be obtained from Spatializer`s SEC filings, and by contacting the Company`s Investor Relations Department toll-free at 888-825-0743 or by writing to spaz@mdcgroup.com. For Media inquiries please contact Marken Communications at 408-986-0100 or by writing to Andy@MarkenCom.com. For Japan market inquiries, contact masaya@ishi-kawa.com.

Safe Harbor Act Statement Under the Private Securities Litigation Reform Act of 1995: Certain information in this news release, including the comments by Mr. Mandell in paragraphs three and five 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 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.

Notices: Spatializer® is a registered trademark and Spatializer N-2-2(TM), Digital AutoFX(TM), Digital AVFX(TM), Digital PCFX(TM), Digital TVFX(TM), Digital OntheGoFX(TM) and DigitalFX(TM) are trademarks of Desper Products, Inc., a wholly owned subsidiary of Spatializer Audio Laboratories, Inc. All other trademarks are the property of their respective owners.

SOURCE: Spatializer Audio Laboratories Inc.


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