NOVATO, Calif., Jan. 8 /PRNewswire-FirstCall/ -- SpatiaLight, Inc. (NASDAQ:HDTV), a leading developer and manufacturer of ultra high-resolution Liquid Crystal on Silicon (LCoS) microdisplays for the high definition television market, announced today that it will be displaying several of its products in the Company's suite at the MGM Grand Hotel for the 2007 Consumer Electronics Show beginning January 8th in Las Vegas, NV. SpatiaLight will be exhibiting the LG Electronics 71 inch diagonal 1920 x 1080p LCoS rear projection television, currently sold in Australia, in addition to stereoscopic Head Mounted Display prototypes and a front projection unit based upon SpatiaLight's next generation 0.55 inch LCoS imager. Additionally, Jiangxi Greatsource Display Tech Co., Ltd. (KHD) will be demonstrating an 85 inch rear projection television incorporating SpatiaLight's 1920 x 1080p LCoS imagers that is intended for commercial display applications at their booth on the Convention Floor (# 51064, Hilton Hall). The stereoscopic Head Mounted Display (HMD) prototypes that will be displayed in the Company's suite are based on a dual 1920 x 1080p imager solution and intended to address the fast growing 3-D near to eye display market. SpatiaLight believes that these are the first HMD products to have 1920 x 1080p resolution to be publicly demonstrated. These HMD "glasses" will be used primarily for personal display applications such as computer monitors, PC gaming displays and private movie viewing. Head Mounted Display products represent a rapidly growing segment of the consumer electronics sector. SpatiaLight's design partner is a Korean based consumer electronics company that will not be disclosed at this time. SpatiaLight will also be demonstrating, for the first time publicly, samples of its next generation 0.55 inch diagonal 1920 x 1080p LCoS imager sets in a front projector solution that is suitable for business and home use. The 0.55 inch imager is smaller than SpatiaLight's T-3 imager which has a 0.74 inch diagonal size and represents a cost reduction roadmap for consumer electronics companies in addition to opening the door to other product types at very attractive costs to both the consumer electronics company and the end user. Foreal Spectrum, Inc., of San Jose, CA, will also be displaying their proprietary state-of-the-art light engine in the SpatiaLight suite. The Foreal light engine, employing SpatiaLight's T-3, 1920 x 1080p imagers, is powered by a long life, solid-state LED light source rather than the typical high pressure mercury arc lamp. This solid-state light source dramatically improves light engine lifetime and represents the future of light engine technology. David Hakala, SpatiaLight's Chief Executive Officer commented, "This year's CES is a turning point for SpatiaLight. The new 0.55-inch developmental imagers shown in a front projection mode and the Head Mounted Display prototype open up new market segments and create additional new customer opportunities beyond the large screen RPTV market served by our current production product." About SpatiaLight SpatiaLight, Inc., founded in 1989, manufactures high-resolution LCoS microdisplays for use in high-definition televisions and other display applications. The company manufactures its products at its production facility in South Korea. SpatiaLight 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 2007 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-Q and 10-K. DATASOURCE: SpatiaLight, Inc. CONTACT: SpatiaLight, Inc., +1-415-883-1693, or Web site: http://www.spatialight.com/

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