To: tech101 who wrote (66 ) 2/9/2004 10:16:20 PM From: Ron Read Replies (1) | Respond to of 152 NOVATO, Calif., January 13, 2004 - SpatiaLight, Inc. (NASDAQ: HDTV) today announced that it has signed an agreement with Shanghai China Display Co., Ltd. (China Display), a Chinese television manufacturer, for the purchase by China Display of 1000 sets of three SpatiaLight imagEngine™ liquid crystal on silicon (LCoS) microdisplays. China Display is recognized by the Chinese government as the leader in LCoS light engine development in China . This purchase order agreement is the result of a memorandum of understanding entered into in August 2002. Pursuant to the purchase order, SpatiaLight completed an initial delivery of 100 microdisplay sets to China Display in December 2003. A second delivery of 300 sets and a third delivery of 600 sets are to follow. The entire order is scheduled to be completed within a three-month period. Pursuant to the terms of the purchase order, the obligations of China Display will be backed by three letters of credit, the first of which has been issued in SpatiaLight’s favor. The purchase order is subject to customary terms and conditions pertaining to the purchase by China Display of the 1000 microdisplay sets. Ted Banzhaf, Executive Vice President of SpatiaLight, stated, “We are very excited about this highly competitive win for our product, as it marks the first purchase order in which an OEM will incorporate our microdisplays into its existing light engine.” Guo Liang, Chairman of the Board of China Display, commented, “SpatiaLight’s microdisplays demonstrated superior performance during the testing conducted pursuant to our 2002 MOU. We intend to use these shipments for initial production run set up and product roll out. We are excited by the prospect of bringing televisions to market incorporating SpatiaLight’s cutting edge LCoS technology.” About SpatiaLight, Inc. SpatiaLight, Inc., founded in 1989, manufactures high-resolution LCoS microdisplays for use in High Definition televisions and rear projection monitors. The Company's proprietary SpatiaLight imagEngine™ LCoS microdisplays represent a solution for OEMs of large-screen rear projection monitors, home theater projection systems, video projectors, and other display applications. Utilizing more than 3.6 million pixels, SpatiaLight’s microdisplay sets are designed to be incorporated into High Definition televisions and rear projection monitors. A SpatiaLight display unit, another Company product, is comprised of three SpatiaLight imagEngine™ microdisplays fitted onto a light engine designed by SpatiaLight and Fuji Photo Optical Co., Ltd. and manufactured by Fuji . SpatiaLight is committed to developing microdisplay technologies that will become the standard for the next generation of rear projection display devices and to providing OEMs with the most cost effective, high resolution microdisplays in the industry. For more information about SpatiaLight, please see the Company web site: www.spatialight.comspatialight.com