SPATIALIZER N-2-2 ULTRA VIRTUAL SURROUND SOUND DEBUTS.

Spatializer Audio Laboratories Inc., Santa Clara, Calif. (BULLETIN BOARD: SPAZ) has launched Spatializer N-2-2 Ultra(TM), the company's new virtual surround sound software. Designed for next generation DVD players with high performance processors, Spatializer N-2-2 Ultra is now available to OEMs on Zoran Corporation's Vaddis V multimedia processor.

"Spatializer N-2-2 Ultra provides consumers with unparalleled user control while dramatically improving the home theater experience from just two speakers," explained Randy Roscoe, Spatializer's vice president of sales and marketing. "Spatializer N-2-2 Ultra is initially available for the new Zoran Vaddis V multimedia processor for use in DVD players and Set Top Boxes by OEMs. While we will support many of the other next generation DSPs in the coming months, we are very pleased to launch our new flagship product on the Vaddis V, one of the hottest new processors available today."

Spatializer N-2-2 Ultra takes advantage of the latest processor architecture to deliver outstanding performance and a world-beating feature set. By offering a wide array of features and options, Spatializer N-2-2 Ultra(TM) provides the branded OEM the opportunity to offer their customers a diverse package of audio enhancement features in a single cost effective solution. These features and options include the following:

Improved HRTF Modeling and Cross-Talk Cancellation

The Head-Related Transfer Function (HRTF) provides the cues the brain needs in order to locate the position of a sound. By modeling this complex and varying function, Spatializer N-2-2 Ultra is able to create the illusion as if multiple loudspeakers surround the listener. The cross-talk canceller is the key to making virtual audio sound impressive over loudspeakers. Bas ed on this new HRTF modeling, an improved cross-talk canceller has been developed that produces a more refined and accurate sound virtualization.

Front and Rear Channel Virtualization

Inferior down mixing algorithms tend to only process the rear (surround) channels, while leaving the front (left, right) unprocessed. This is especially true of free no-name algorithms that some semiconductor companies give away with their processors. Spatializer N-2-2 Ultra virtualizes the front channels as well as the rear channels, delivering an immersive virtual surround experience, even if the rear channels are quiet.

Spatializer N-2-2 TV(TM)

Spatializer N-2-2 TV(TM) is a new algorithm specifically designed to enhance DVD playback over built-in television speakers. This mode takes advantage of the pre-determined listening configuration inherent in the speaker positioning and optimizes the audio stream to create a wider and clearer virtual surround soundstage.

Theater Speaker Placement Optimization

In order to accommodate varying Home Theater room architecture, Spatializer N-2-2 Ultra is adjustable by the consumer for various speaker locations, thus providing the listener with an optimum virtual surround listening experience based on their unique listening area layout.

DVD Movie Dialog Enhancement

DVD movies play most of the dialog through the center channel, but existing virtual surround technology offsets the center channel to the left and rig ht channels, therefore impairing dialog clarity and centering. For a more natural listening experience, Spatializer N-2-2 Ultra has been designed to maintain of the center channel positioning virtually, therefore ensuring that the movie dialog remains centered and clear in the newly widened virtual surround sound field.

Spatializer Natural Headphone(TM)

Spatializer Natural Headphone is the ideal solution for all headphone applications. The 5.1 channel surround sound down-mixing algorithm provides natural quality sound effects over headphones. A well-defined center image allows for crystal clear presentation of dialogue, while the other surround channels immerse the listener in a three dimensional audio experience. The algorithm is also available as a 2-channel solution for enhanced stereo listening.

Spatializer PCE(TM) Phase Corrected Equalization 

With Spatializer PCE, high frequencies are clearer, crisper and more brilliant while low frequencies are more dramatic, tighter and have more impact. Spatializer PCE gives the OEM an inexpensive way to dramatically improve the sound of small or frequency-response challenged loudspeakers, such as the kind often found in televisions or compact system set-ups.

VirtuaLFE(TM) Virtual Subwoofer Processing

Most DVD's contain a Low Frequency Effects (LFE) channel that is typically sent to a subwoofer in a discrete 5.1 loudspeaker arrangement. Since this LFE channel can overload the output of many stereo and television systems, it is often not included in a 5.1 channel down-mix to 2 channels. OEM's now have the option of including this LFE channel using Spatializer VirtuaLFE, thereby adding a virtual subwoofer effect to any TV.

"We are pleased that Spatializer chose to enhance our Vaddis V home entertainment platform with N-2-2 Ultra," said Michael Wood, vice president and general manager of the Home Entertainment Division of Zoran Corporation, "Vaddis V's outstanding audio DSP is ideal for running advanced audio software. Since great audio makes great video, N-2-2 Ultra will help our customers be even more competitive."

"With the introduction of Spatializer N-2-2 Ultra, we've raised the bar for quality virtual surround sound," asserts Spatializer Chairman and CEO Henry R. Mandell. "We have not only set the 'de facto' standard for DVD virtual surround sound -- we have improved upon our own standard. Leading branded OEMs simply cannot win their battle for market share based on price alone. They have got to offer their customer an audio and video experience that exceeds their expectations, especially for the majority of consumers without expensive surround sound speaker systems. This means going beyond offering run-of-the-mill 3-D surround solutions with underpowered processors. Spatializer N-2-2 Ultra is a premium and comprehensive virtual audio solution which delivers the widest array of value added features to the OEM who strives to market impressive and high value products. Zoran is right on the money when they say that great audio makes great video-and making great audio is our business."

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, LG, Zenith, Sonicblue and RCA, in PC multimedia system s and peripherals from Apple, in silicon from Matsushita and running on processors from Texas Instruments, Cirrus Logic, Zoran, Motorola, LSI Logic, T via, VM Labs and Acer Laboratories Inc. Spatializer stock is traded on the OTC Bulletin Board under the symbol: SPAZ. The company is headquartered i n Santa Clara, CA, with marketing offices in Tokyo, Japan.

For more information, visit http://www.spatializer.com or call 408-296-0600, ext. 4.