SpatiaLight Subsidiary Receives Official Approved Vendor Status From LG Electronics and ISO-9002 Certifications

SpatiaLight Subsidiary Receives Official Approved Vendor Status From LG Electronics and ISO-9002 Certifications

NOVATO, Calif., Sept. 22 /PRNewswire-FirstCall/ -- SpatiaLight, Inc. (NASDAQ:HDTV), a leading manufacturer of state of the art liquid crystal on silicon (LCoS) microdisplays, today announced that its wholly-owned Korean subsidiary, SpatiaLight Korea, Inc. (SLK), has received two certifications. SLK has achieved Approved Vendor status with LG Electronics, SpatiaLight's largest customer. In addition, SLK's state of the art manufacturing facility located in South Korea received ISO-9002 Certification from the independent auditing firm Orion Registrars, Inc.

SLK received the official LGE Approved Vendor Status by successfully passing an extensive series of Quality Assurance audits. The LGE Quality Assurance audit was executed to investigate the manufacturing and business processes within SLK. The audit is intended to provide LGE with assurances that SLK has systems in place to produce quality products, maintain effective quality controls and fulfill compliance with applicable environmental laws. The LGE audit process focused on process control, production control, inventory control, general inspection, equipment maintenance, failure analysis, cost tracking and implementation of process flow. LGE's rigorous Quality Assurance audit process is inclusive of and considered more extensive than the quality requirements of the ISO-9002 certification standard.

SLK has also received official ISO-9002 certification after successfully completing the audit process conducted by independent third party auditor Orion Registrars, Inc. This significant milestone establishes that SpatiaLight has implemented a manufacturing operation and associated systems that meets or exceeds the expected quality system standards for a manufacturing firm.

SLK operates SpatiaLight's full scale Korean manufacturing facility from which SpatiaLight supplies LGE with the LCoS Sets to be used in LGE's line of high definition rear projection 1080p televisions. LGE officially introduced its 71" LCoS television recently at the Consumer Electronics Design and Installation Association Expo 2005 (CEDIA 2005) in Indianapolis, Indiana.

Je-Won Yeun, President of SLK, commented, "We are pleased to announce these milestone certifications. We have worked hard to build a state-of-the-art production facility to provide LGE and other customers with the best LCoS microdisplays available in the marketplace. We believe that the SpatiaLight imagEngine(TM) microdisplay will be the cornerstone for the production of superior high-definition LCoS televisions for LGE and other television manufacturers."

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. 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 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 2005 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 Forms 10-Q and 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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