SpatiaLight Announces Fiscal 2004 Year End Results

SpatiaLight Announces Fiscal 2004 Year End Results

NOVATO, Calif., March 14 /PRNewswire-FirstCall/ -- SpatiaLight, Inc. (NASDAQ:HDTV), a manufacturer of state of the art liquid crystal on silicon (LCoS) microdisplays, today announced its financial results for the fiscal year ended December 31, 2004.

For the year ended December 31, 2004, SpatiaLight had revenues of $1,160,978, as compared with revenues of $221,252 in 2003. Net loss in 2004 was $9,367,001 compared with a net loss of $9,516,377 in 2003. Net loss per share was $(0.27) for 2004, compared with $(0.34) for 2003.

SpatiaLight ended the year with cash and cash equivalents of $9,087,551, working capital of $8,593,704, stockholders' equity of $5,966,457, and $9,885,140 in long-term convertible debt, net of applicable discounts.

Webcast Details

SpatiaLight will hold a public audio webcast at 5:00 p.m. EST on Monday, March 14, 2005, with management of the Company to discuss details regarding the Company's performance for the fiscal year and other forward-looking information. The session may be accessed at www.spatialight.com under the link for Investors. The webcast will be available for replay through the close of business on March 21, 2005.

About SpatiaLight, Inc.

SpatiaLight, Inc., founded in 1989, manufactures high-resolution LCoS microdisplays for use in high definition televisions and other display applications. Utilizing more than 6.2 million pixels, SpatiaLight's LCoS Sets are comprised of three proprietary SpatiaLight imagEngine(TM) microdisplays. A SpatiaLight display unit, another Company product, is comprised of an LCoS Set fitted onto a light engine designed by SpatiaLight and Fuji Photo Optical Co., Ltd. and manufactured by Fuji. SpatiaLight currently manufactures two models of its LCoS Sets. The newer generation "T-3" model has an active matrix of 1920 pixels by 1080 pixels configuration and the "T-1" model has an active matrix of 1280 pixels by 960 pixels configuration. SpatiaLight is committed to developing microdisplay technologies that will become 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 see the Company website: www.spatialight.com.

Safe Harbor Statement

This news release and statements made in the webcast include 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 2004 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 Securities and Exchange Commission, including its most recent report on Form 10-K.

Source: SpatiaLight, Inc.

CONTACT: Ted Banzhaf of SpatiaLight, Inc., +1-415-883-1693, ext. 132

Web site: http://www.spatialight.com/

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