SpatiaLight To Bolster Upper-Level Management

CFO Search Initiated and New Plant Manager for Korean Subsidiary to Be Named Soon 


NOVATO, Calif., June 14  /PRNewswire/ -- 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 announced that it has embarked on a plan to strengthen its top-level management as the company ramps up production of its 1080p LCoS Sets.

The company is commencing an active search for a full-time chief financial officer as part of its plan to enhance management and is in the final stages of selecting a new plant manager for its wholly-owned subsidiary SpatiaLight Korea, Inc. (SLK).

Robert Olins, chief executive officer of SpatiaLight, stated, "SpatiaLight is headed in a very positive direction and with the expected growth we will require a full-time chief financial officer.  We have begun the search for the right person to fill that key role, which will comprise overall responsibility for financial transactions and reporting as well as investor relations activities."  In anticipation of this reorganization of duties, SpatiaLight has accepted the resignation of Theodore Banzhaf, who has served in the investor relations role as executive vice president of strategic planning.

Mr. Olins continued, "On behalf of the entire SpatiaLight team, I thank Ted for his three years of dedicated service and many significant contributions to our company.  He is a good man, a talented corporate executive, and I expect that he will enjoy a successful career in the years to come."

In South Korea, where the company's manufacturing operations are based, SpatiaLight has been searching for a new plant manager with expertise in managing semiconductor manufacturing to lead the company's ramp up toward mass production of its 1080p LCoS Sets.  JeWon Yeun, who is currently managing the plant while serving as SLK's president, is expected to move to a senior advisory position within the company to facilitate a smooth transition.

Dr. David Hakala, SpatiaLight's chief operating officer, commented, "It is important that SLK's new plant manager possess strong high-tech manufacturing leadership skills to ensure a successful ramp up in production volumes to meet anticipated demand from LG Electronics and other current and prospective customers.  We expect to be announcing the hiring of a highly qualified candidate in the near future."

Mr. Olins concluded, "This remains an exciting and critical juncture for our business.  Having a strong management team in place is crucial to enabling our successful ramp up to mass production and that is ultimately how meaningful shareholder value will be created."

About SpatiaLight

SpatiaLight, Inc., founded in 1989, manufactures high-resolution 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 U. S. Securities and Exchange Commission, including its most recent reports on Form 10-K/A and Form 10-Q.  Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date that they were made.  SpatiaLight does not undertake any duty to update these forward- looking statements, or any other information provided in this press release, unless required by law. 

DATASOURCE: SpatiaLight, Inc.



CONTACT:  Michael J. Porter of Porter, LeVay & Rose, Inc.,

[phone], or , for SpatiaLight, Inc.



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

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