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http://www.bigcharts.com/news/articles.asp?newsid=742900195&…

SPATIALIZER APPOINTS INTERNIX TO SELL SOFTWARE SOLUTIONS IN JAPAN


TUESDAY, DECEMBER 12, 2000 6:33 PM
- Asia Pulse

Dec 12, 2000 (AsiaPulse via COMTEX) -- (Full text of a statement. Contact details below.)

SANTA CLARA, Calif., Dec. 12 /PRNewswire-AsiaNet/ -- Spatializer Audio Laboratories Inc. (OTC Bulletin Board:
SPAZ) 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(R) 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(R)-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 spazmdcgroup.com. For Media inquiries please contact Marken
Communications at 408-986-0100 or by writing to AndyMarkenCom.com. For Japan market inquiries, contact
masayaishi-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(R) 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.
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