SpatiaLights LCoS Products On Display at Consumer Electronics Show

SpatiaLight, Inc. (Nasdaq: HDTV), a manufacturer of state-of-the-art liquid crystal on silicon
(LCoS) microdisplay devices, will have its high definition television technology on display at the Consumer Electronics Show (CES) in Las Vegas, Nevada, January 6-9, 2005.

Several companies will be displaying rear projection television products
at CES that incorporate SpatiaLight imagEngine(TM) microdisplays, in both the
1920x1080p and 1280x720p pixel configurations. SpatiaLight will also be
demonstrating its products for customers and prospective customers at the
Bellagio Hotel during CES.

Companies exhibiting products incorporating SpatiaLight's technology will
include:

LG Electronics USA Inc. -- Located at the Las Vegas Convention Center in
booth 8214.

Konka Group Co. Ltd. -- Located at the Las Vegas Convention Center South
Hall in booth 25357.

ThinTEK Optronics Corp. -- Located at the Las Vegas Hilton in booth
52000.

SCT Optronics Co. Ltd. -- Located at the Las Vegas Hilton in booth 59061.

Ted Banzhaf, Executive Vice President of Strategic Planning for
Spatialight commented, "SpatiaLight is very pleased to see our customers, such
as LGE, begin to bring product to the marketplace and demonstrate televisions
based on our LCoS Sets to the worldwide forum that is CES. LCoS is a very
exciting technology with great potential for growth in large screen, high
definition televisions worldwide."

For more information about CES, please see: http://www.cesweb.org

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 2004 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
Securities and Exchange Commission, including its most recent reports on Forms
10-Q and 10-K.