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Company Press Release

SOURCE:Spatializer Audio Laboratories Inc.

Spatializer Collaborates With VM Labs to Provide Audio Enhancement Technology For the NUON Platform

First NUON Powered DVD Players Incorporating Spatializer`s N-2-2 Virtual Surround Sound Algorithm to be Available in Second
WOODLAND HILLS, Calif., Feb. 1 /PRNewswire/ -- Spatializer Audio Laboratories Inc. (OTC Bulletin Board: SPAZ) announced
today that VM Labs, Inc. will offer Spatializer`s audio enhancement algorithms on their highly acclaimed and revolutionary NUON

"We are very pleased to make this announcement," said Pete Birch, Senior Vice President at Spatializer. "The NUON platform is
an exceptional product, and has garnered a huge amount of interest. We have been working with the people at VM Labs for over 2
years and are pleased that we are able to bring our efforts to fruition. This alliance helps secure our position as the defacto
solution for virtual surround audio, and ensures that we are able to continue to provide the consumer with the benefits of our
technology in the latest generation of interactive DVD units. We expect to announce specific design wins over the next few

VM Labs` NUON technology turns a DVD player into a complete video entertainment system. Standard DVD movies will not only
run on NUON enhanced DVD players, but will benefit by vastly improved movie-viewing features. NUON enhanced players will
also be able to play a wide variety of entertainment and educational software as well as bring audio CDs to life with stunning
visual effects modes. VM Labs is licensing third party publishers to develop NUON interactive software that will serve the family
market. Peripheral ports will allow users to plug in joysticks, keyboards and other devices, providing additional ways to interact
with the DVD player.

Richard Miller, Chief Executive Officer of VM Labs, commented, "The inclusion of Spatializer`s technology in the NUON platform
was a must for us. They are the leading brand for virtual audio enhancement in the DVD market and we are more than pleased to
have this relationship. The ability to generate a surround sound environment from just two speakers provides NUON enhanced
DVD players with greater functionality and appeal in the family market where a complete home theatre set-up isn`t always

N-2-2 is Spatializer`s flagship product for the DVD player market. The technology employs psychoacoustic signal processing to
create a realistic home theatre surround experience from just two speakers. To date the technology has been incorporated in
DVD players from Toshiba, Samsung, LG, Acer, Hitachi, GE, Zenith, Marantz, Emerson, and others.

NUON has the speed and power to transform a DVD player into an interactive fun-center that will entertain the whole family.
NUON enhanced digital video devices bring the television to life with interactivity in the form of games, educational software,
interactive movie content and more. Future NUON enhanced features include Internet connectivity and web-enabled movie
experiences. The NUON media processing technology replaces the MPEG decoder chip currently found in digital video products.
Analysts predict that digital video will supersede the current analog method over the next few years, and NUON is poised to
become the new standard for interactive digital home entertainment. VM Labs is based in Mountain View, CA. For additional
product information, please visit http://www.nuon-tech.com.

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 with Matsushita, ESS, Zoran,
Motorola, C-Cube, OnChip Systems, and Acer Laboratories Inc, and in software compatible with MP3 players such as WinAmp
and XingMP3.

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, Web-site (www.spatializer.com) or by contacting the company directly.

Safe Harbor Act Statement Under the Private Securities Litigation Reform Act of 1995: Certain information in this news release,
including the comments by Mr. Birch in paragraph two 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, the timing and realizable value of the MDT technology, and other risks detailed from time to
time in the Company`s periodic reports filed with the Securities and Exchange Commission.

Notices: Desper Products, Inc. is a wholly owned subsidiary of Spatializer Audio Laboratories, Inc. Spatializer(R) is a registered
trademark and N-2-2(TM), Vi.B.E(TM) and StreamFX(TM) are trademarks of Desper Products, Inc. NUON is a trademark of VM
Labs, Inc.

Henry R. Mandell, Interim Chief Executive Officer of
Spatializer Audio Laboratories Inc., 818-227-3370, henrym@spatializer.com; or
Public Relations: Linda Thurmond-Meyers of Bender

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News Articles for :
February 22, 1999 -- Digital Technology Report
"The first combination DVD player/digital set-top boxes based on Motorola`s
Streamaster set-top architecture will begin shipping later this year."
"Streamaster, which includes VM Labs` NUON media processor, will also support
network-based interactive games..."
"Hong Kong Telecom is deploying the Streamaster based box first for
video-on-demand, and high-speed Internet access, but interactive gaming is high
on the list of services..."

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