HDTV Spatialight (MM)

OEM Customers Will Continue to Employ ThinTek Light Engine Powered by SpatiaLight LCoS Imagers NOVATO, Calif., Aug. 14 /PRNewswire-FirstCall/ -- SpatiaLight, Inc. (NASDAQ:HDTV), a leading developer and manufacturer of ultra high-resolution Liquid Crystal on Silicon (LCoS) microdisplays for the high definition television market, today clarified and confirmed that ThinTek Optronics Corporation will continue to support customers with the proprietary ThinTek light engine design incorporating SpatiaLight's LCoS microdisplays. On July 19, 2006, United Microdisplay Optronics (UMO), a Taiwan based liquid crystal on silicon specialist, announced that it intended to acquire the Taiwan-based LCoS light-engine maker, and SpatiaLight customer, ThinTek Optronics, via a share swap. In the interim, SpatiaLight has endeavored to confirm UMO's intentions with regard to ThinTek and SpatiaLight. Dr. J.J. Lee, President of UMO, recently informed SpatiaLight that UMO will endorse ThinTek's continued support of the technology transfer to television Original Equipment Manufacturer (OEM) customers employing ThinTek's light engine design incorporating the SpatiaLight 1080p T3 imager sets. These OEM customers will manufacture light engines using the ThinTek proprietary design and employing the supply chain for key components set up by ThinTek. The optomechanical light engine design as well as the electrical drive board system are specifically designed to incorporate the SpatiaLight T3 LCoS imager sets. Going forward, the OEM customers will purchase imagers directly from SpatiaLight, although there can be no assurances of future sales. David Hakala, SpatiaLight's Chief Operating Officer, commented, "We are pleased with ThinTek's intent to complete the transfer of this light engine design to OEM customers. We will continue to support the customers' development runs and expect to negotiate purchase agreements for our 1080p T3 imager sets upon successful completion of this effort. " ThinTek was founded in 2003 with backing from United Microelectronics Corporation, a leading Taiwanese semiconductor manufacturer and Premier Image Technology Corporation, a leading Taiwanese global image products supplier. 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/ . 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 2006 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 US Securities and Exchange Commission, including its most recent reports on Form 10-K and 10-Q. DATASOURCE: SpatiaLight, Inc. CONTACT: SpatiaLight, Inc., +1-415-883-1693, or Web site: http://www.spatialight.com/

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