HDTV Spatialight (MM)

SI InfoComm to Fund Development Costs to Speed Micro-Projectors to Market NOVATO, Calif., Jan. 17 /PRNewswire-FirstCall/ -- SpatiaLight, Inc. (NASDAQ:HDTV), a leading developer and manufacturer of ultra high-resolution Liquid Crystal on Silicon (LCoS) microdisplays, announced today that it has entered into a Memorandum of Understanding (MOU) with SI InfoComm, Inc. and SCRAM Technologies, Inc. for the design and development of a new class of projection display, Micro-Projectors. This new Micro-Projector product category is a technology with the potential to affect a wide variety of consumer electronic products. The overall applications vary from cell phones, PDAs and laptop computers to portable and home video games. The Micro-Projector will be about the size of a typical deck of cards. Moreover, it is likely that Micro-Projectors will soon be built into these devices as well as other consumer electronic products such as portable DVD players and video game consoles. Micro-Projectors initiate a dramatic change to the mobile electronics world in that they allow the user to bring larger and higher quality video everywhere. This consortium currently has a product roadmap in place and intends to offer the Micro- Projector as an accessory for cell phones and PDAs distributed by a specific and as of yet unnamed, large international service provider. Micro-Projectors will provide a compact and portable display system that projects high quality, high-resolution images from a variety of data, image and video sources by linking either wirelessly or from a wired source. Under the agreement, each company will have complementary responsibilities in developing prototypes and bringing Micro-Projectors to the marketplace quickly and efficiently. SpatiaLight will provide a 0.3 inch diagonal SVGA resolution single chip LCoS imager solution designed specifically for this application. Additionally, SpatiaLight is to provide the necessary drive electronics reference design. SCRAM Technologies will produce the key optical component technology including their state-of-the-art laser diode modules that will drive the projection system. The overall product design and system level integration will be spearheaded by SI InfoComm. To speed the development and commercialization of this product and its future applications, SI InfoComm will provide SpatiaLight with funding for certain non-recurring engineering expenses. Dr. Michael Jin, SpatiaLight's Chief Technology Officer commented, "SpatiaLight's imager technology is the perfect solution to enable this exciting new product through a high quality, high resolution image display coupled with low power consumption. In conjunction with the technology contributions and design efforts of our project partners we expect to collectively deliver a product that will provide mobile electronics users with dramatically improved display options and capability." David Hakala, SpatiaLight's Chief Executive Officer added, "This agreement is another step in SpatiaLight achieving its objectives of broadening our customer base and entering new product categories using our proprietary core technologies. We expect that the development stage of this product will be relatively short and that the product should be in the marketplace later this year." 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/ . About SCRAM SCRAM Technologies, Inc. was established in 1998 to commercialize a rear projection screen technology licensed through a technology transfer from Brookhaven National Laboratory. As an adjunct to the SCRAMscreen(R), SCRAM has also developed state of the art proprietary optics and LED illumination systems. These components, as well as their exceptional technical team, have allowed the company to create advanced display solutions in military, consumer and commercial vertical markets. About SI InfoComm SI InfoComm is a leading Korean electronics systems manufacturer (mobile electronics systems) that intends to be a leader in the promotion and marketing of LCoS based miniaturized projection systems in Korea and Asia Pacific. 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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