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TVIA SELECTS SPATIALIZER N-2-2 VIRTUAL SURROUND SOUND TECHNOLOGY FOR USE IN ITS STREAMING MEDIA PROCESSORS

DSP-based Software Enables Set-Top Box Producers to Economically Deliver Rich Sound From Two Speakers
 
  CES, Las Vegas - January 6, 2001 - Spatializera Audio Laboratories, Inc. (OTC BB:SPAZ), developer and marketer of the de facto standard for virtual surround sound, announced today that Tvia, Inc. (NASDAQ: TVIA) will offer Spatializer N-2-2? audio enhancement technology as an option with its CyberPro? 5055 streaming media processor chips.
  

  A highly integrated solution, CyberPro5055 is used in broadband set-top boxes, Internet enabled devices and digital televisions from leading OEM manufacturers. Tvia will be showcasing its CyberPro streaming media processors designed into the latest set-top boxes and Internet enabled devices at CES this week
  
  The DSP-based Spatializer N-2-2 software features proprietary psycho-acoustic optimization algorithms, enabling it to reproduce the spatial realism of 5.1 channels of Dolby Digitala through just two standard speakers. Designed to enhance the listener's entertainment experience, the Spatializer software delivers an ultra-wide, deep and robust optimal listening area (sweet spot). By specifying CyberPro 5055 with Spatializer N-2-2, OEMs can deliver set-top boxes that simulate a full, multi-channel playback system with complete audio depth and drama, including superior low-frequency effect enhancement.
  
  The CyberPro5055 is a complete, easy-to-integrate solution that provides all the hardware and software components OEMs need to design feature-rich set-top boxes. Offering real-time performance, it processes multiple streams of media content including, video, audio, voice, data, graphics text and animation.
  
  The processor combines a high-performance video processor as well as multiple video capture engines, scaling, time-base correction, de-interlacing, overlay/transparency processing, picture-in-picture and flicker filter to ensure optimum TV display performance. The CyberPro 5055 also features FlexiBus? , which enables direct interface to major RISC CPUs running most real-time operating systems (RTOS).
  
  "Surround sound is sought after in today's versatile set-top boxes, even at the low-end," said Vahe Ahay, Tvia Vice President of Marketing. "With Spatializer N-2-2 and our CyberPro streaming media processors, OEMs have a single solution for visually and audibly differentiating their products from the competition without pricing their products out of the market."
  
  "CyberPro products are widely recognized for offering increased functionality and are used in the leading set-top boxes produced by manufacturers such as Acer, Celerity, Fujitsu, Philips/AOLTV and Stellar One," said Henry R. Mandell, Chairman and Chief Executive Officer of Spatializer Audio Laboratories.
  
  "This is our first announced design win for the set-top box market, which is a high growth area we have been targeting. We're very pleased that Tvia has selected Spatializer N-2-2 software to enhance the set-top products of major manufacturers like these. Now that we are positioned on this exciting platform, our efforts will be directed at evangelizing the benefits of the technology to these manufacturers and customers to expand our revenue base. Industry analyst project that TV set-top box sales will more than triple over the next two years, and with Tvia's track record in anticipating market trends, it will continue to capture a growing share of this market."
  
About Tvia
  Tvia, Inc. designs, develops and markets streaming media ICs for the Internet appliance, broadband set-top box and digital television markets. The company is headquartered in Santa Clara, California, with worldwide operations and employs more than 150 hardware and software product development engineers. Tvia's patented semiconductor technology, together with its proprietary software, process rich audio, video, graphics and Internet content streams, enabling consumers to enjoy an enhanced television viewing experience. Visit www.tvia.com.
  
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, OnChip Systems, 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.
  
  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 paragraph 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: Desper Products, Inc. is a wholly owned subsidiary of Spatializer Audio Laboratories, Inc. Spatializer@is a registered trademark and Spatializer N-2-2™is a trademark of Desper Products, Inc.