NOVATO, Calif., April 2 /PRNewswire-FirstCall/ -- SpatiaLight, Inc. (Nasdaq: HDTV), a developer and manufacturer of ultra high-resolution microdisplays, announced that the Company received a notice from the NASDAQ Stock Market on March 27, 2007 that it does not meet the requirements for continued listing under Marketplace Rule 4310(c)(2)(B), which requires minimum stockholders' equity of $2,500,000, a market value of the Company's common stock of at least $35,000,000 or net income from continuing operations of $500,000 in the most recently completed fiscal year or two of the last three most recently completed fiscal years. If the Company is unable to demonstrate that the market value of its common stock is greater than $35,000,000 by April 26, 2007, its securities will be delisted from trading on the NASDAQ Stock Market.

The Company is examining its options for appeal and taking the necessary steps to have its stock traded on an Over-The-Counter Bulletin Board in the event a delisting occurs.

About SpatiaLight

SpatiaLight, Inc., founded in 1989 in Novato, Calif., manufactures high-resolution LCoS microdisplays for use in a variety of display applications, including high definition television. 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 facilities in Novato and at its larger production 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 2007 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 Forms 10-Q and 10-K.

SOURCE SpatiaLight, Inc.