SpatiaLight Announces Second Quarter and Six Months 2006 Results

NOVATO, Calif., Aug. 9  /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 reported its results for the second quarter and the six months of 2006.

For the quarter ended June 30, 2006, SpatiaLight had revenues of $59,148 as compared with revenues of $41,149 for the same period in 2005.  Revenues for the six months ended June 30, 2006 were $144,842, compared to revenues of $138,908 for the same period in 2005.  Net loss for the quarter was $5,304,581, or $0.13 per share, versus a net loss of $3,524,447, or $0.10 per share for the same period a year ago.  The company reported a net loss of $10,937,250, or $0.28 per share, compared to $5,672,982, or $0.16 per share for the six months ended June 30, 2005.

Dave Hakala, Chief Operating Officer, commented, "We successfully transitioned SpatiaLight from a research and development company to a volume manufacturing company  during the first six months of 2006.  Our ability to move from 100% testing to sample testing demonstrated the commitment of SpatiaLight's management team to reaching the demands of LGE and other customers.  We recognize that areas needing improvement include adding new customers to reduce our current dependence upon LGE, and to the introduction of new products. Although the second quarter was below our expectations, we are confident that recent internal steps, including the hiring of a new plant manager, will help us build credibility and shareholder value in the near-term."

Hakala added, "One significant aspect of our relationship with LGE which had previously been kept confidential is our ability to participate in the sale of the LGE light engine to other TV makers.  We will either have the option of (re)selling the light engine directly to customers, or to work cooperatively with LGE to sell their engine in conjunction with our imagers. Access to the LGE light engine will enable us to work with potential customers to bring their products to market faster. We believe this approach will be well received by at least certain other Tier One producers whom LGE has worked with previously."

Webcast Details

SpatiaLight will hold a public audio webcast at 5:00 p.m. EDT on Wednesday, August 9, 2006, with management of the Company to discuss details regarding the Company's performance for the second quarter and six months 2006 and other forward-looking information.  The session may be accessed at http://www.spatialight.com/ under the link for Investors.  The webcast will be available for replay through the close of business on August 16, 2006.

About SpatiaLight

SpatiaLight, Inc., founded in 1989, manufactures high-resolution Liquid Crystal on Silicon (LCoS) microdisplays for use in high definition televisions and other display applications. Providing resolution of more than 6.2 million pixels, each SpatiaLight LCoS set incorporates three proprietary imagEngine(TM) microdisplays. The company manufactures its products at its facility in South Korea. The company 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/A and Form 10-Q. 

DATASOURCE: SpatiaLight, Inc.



CONTACT:  SpatiaLight, Inc., [phone], or 



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

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