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<SEC-DOCUMENT>0000950137-07-009653.txt : 20070703
<SEC-HEADER>0000950137-07-009653.hdr.sgml : 20070703
<ACCEPTANCE-DATETIME>20070702204610
ACCESSION NUMBER:		0000950137-07-009653
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20070629
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Completion of Acquisition or Disposition of Assets
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20070703
DATE AS OF CHANGE:		20070702

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SPATIALIZER AUDIO LABORATORIES INC
		CENTRAL INDEX KEY:			0000890821
		STANDARD INDUSTRIAL CLASSIFICATION:	SEMICONDUCTORS & RELATED DEVICES [3674]
		IRS NUMBER:				954484725
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-26460
		FILM NUMBER:		07957185

	BUSINESS ADDRESS:	
		STREET 1:		2025 GATEWAY PLACE
		STREET 2:		SUITE 365
		CITY:			SAN JOSE
		STATE:			CA
		ZIP:			95110
		BUSINESS PHONE:		3102273370

	MAIL ADDRESS:	
		STREET 1:		2625 TOWNSGATE ROAD
		STREET 2:		SUITE 330
		CITY:			WESTLAKE VILLAGE
		STATE:			CA
		ZIP:			91361
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>v31613e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>e8vk</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20459</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>CURRENT REPORT<BR>
 PURSUANT TO SECTION 13 OR 15(d) OF THE<BR>
 SECURITIES EXCHANGE ACT OF 1934</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Date of report (Date of earliest event reported): June&nbsp;29, 2007</B></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>Spatializer Audio Laboratories, Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of Registrant as specified in its charter)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Delaware</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>000-26460</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>95-4484725</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State or other jurisdiction
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Commission File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(IRS Employer Identification No.)</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">of incorporation)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="center"><B>2060 East Avenida de Los Arboles, #D190, Thousand Oaks, California </B><BR></TD>
  <TD>&nbsp;</TD>
<TD align="center" valign="top">
<b>91362</b></td>
</TR>
<TR valign="bottom">
    <TD nowrap colspan="3" valign="top" align="center">(Address of principal corporate offices)</TD>
   <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Zip Code)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Registrant&#146;s telephone number, including area code: (408)&nbsp;453-4180</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Check the appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following provisions (<I>see </I>General
Instruction A.2. below):
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b))
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c))
</DIV>

<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Item&nbsp;1.01 Entry into a Material Definitive Agreement.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On April&nbsp;25, 2007, Spatializer Audio Laboratories, Inc. (the &#147;Company&#148;) entered into a Common
Stock Purchase Agreement (the &#147;Stock Purchase Agreement&#148;) with Jay A. Gottlieb, Greggory A.
Schneider and Helaine Kaplan (collectively, the &#147;Investors&#148;), pursuant to which the Company sold
and the Investors collectively purchased 16,236,615 shares of common stock of the Company for an
aggregate purchase price of $162,366.15 with a potential additional payment of $259,786 to be
released from an escrow account to the Company upon the consummation of the sale of substantially
all of the assets of the Company (the &#147;Asset Sale&#148;) by June&nbsp;30, 2007 pursuant to the Asset Purchase
Agreement more fully described below. On June&nbsp;29, 2007, the Company and the Purchasers amended the
Stock Purchase Agreement to extend the date to which the Asset Sale was required to be consummated
from June&nbsp;30, 2007 to any time prior to July&nbsp;6, 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Item&nbsp;2.01 Completion of Acquisition or Disposition of Assets.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On July&nbsp;2, 2007, Spatializer Audio Laboratories, Inc. (the &#147;Company&#148;) and its wholly-owned
subsidiary, Desper Products, Inc., a California corporation (&#147;Desper&#148;), consummated the sale of
substantially all of their assets pursuant to a certain Asset Purchase Agreement, dated September
18, 2006 (the &#147;Asset Purchase Agreement&#148;), with DTS, Inc., a Delaware corporation (&#147;DTS&#148;), and DTS
BVI Limited, a British Virgin Islands corporation and a wholly owned subsidiary of DTS (&#147;BVI&#148;), for
an aggregate cash purchase price of $1,000,000. DTS and BVI have also agreed to assume and to pay,
perform and discharge when due, all liabilities, obligations and commitments under certain
specified contracts (the &#147;Assumed Contracts&#148;) to the extent arising or relating to performance by
the Company or Desper after the date of closing, other than any liabilities arising due to any
breach of any such Assumed Contract by the Company or Desper. Prior to the closing, DTS and BVI
assigned their respective rights and obligations under the Asset Purchase Agreement to an indirect
subsidiary of DTS, DTS Licensing Limited, a company organized under the laws of Ireland (&#147;DLL,&#148;
together with DTS and BVI, the &#147;Purchasers&#148;) and the parties to the Asset Purchase Agreement
extended the termination date of the Asset Purchase Agreement from June&nbsp;30, 2007 to July&nbsp;2, 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Asset Purchase Agreement and the transactions contemplated therein were approved by the
stockholders of the Company at a special meeting on June&nbsp;15, 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are no material relationships between the Purchasers and the Company or any of the
Company&#146;s affiliates, directors or officers or any associate of any director or any officer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A press release relating to the foregoing was issued on July&nbsp;2, 2007. A copy of the press
release is being furnished herewith as Exhibit&nbsp;99.1.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The foregoing summary of the terms of the Asset Purchase Agreement does not purport to
describe in full all the provisions of the Asset Purchase Agreement and is qualified in its
entirety by the Asset Purchase Agreement, a copy of which has been filed as Exhibit&nbsp;10.9 to the
Company&#146;s Quarterly Report on Form 10-Q filed November&nbsp;14, 2006 and is incorporated by reference.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Item&nbsp;9.01 Financial Statements and Exhibits</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following exhibit is furnished as part of this report:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="92%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description of Exhibit</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">First Amendment to Common Stock
Purchase Agreement, dated June&nbsp;29,
2007, by and among Spatializer Audio
Laboratories, Inc. and the Investors
listed thereto.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Press Release of Spatializer Audio
Laboratories, Inc., dated July&nbsp;2,
2007, announcing the consummation of
the sale of substantially all of the
assets of the Company.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>Spatializer Audio Laboratories, Inc.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Date: July 2, 2007&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="center">/s/ Henry R. Mandell
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Henry R. Mandell&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Chairman of the Board and Secretary&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Exhibit&nbsp;Index
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="92%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description of Exhibit</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">First Amendment to Common Stock Purchase Agreement, dated
June&nbsp;29, 2007, by and among Spatializer Audio Laboratories,
Inc. and the Investors listed thereto.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Press Release of Spatializer Audio Laboratories, Inc.,
dated July&nbsp;2, 2007, announcing the consummation of the sale
of substantially all of the assets of the Company.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>v31613exv10w1.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
<HTML>
<HEAD>
<TITLE>exv10w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;10.1</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">FIRST AMENDMENT TO
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">COMMON STOCK PURCHASE AGREEMENT

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This FIRST AMENDMENT TO COMMON STOCK PURCHASE AGREEMENT (the &#147;<B>Amendment</B>&#148;), dated as of June
29, 2007, is made by and among Spatializer Audio Laboratories, Inc., a Delaware corporation (the
&#147;<B>Company</B>&#148;), and each of Jay Gottlieb, Gregg Schneider and Helaine Kaplan (collectively, the
&#147;<B>Investors</B>&#148;), with reference to the following facts:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;The Company and the Investors are parties to that certain Common Stock Purchase Agreement,
dated as of April&nbsp;25, 2007 (the &#147;<B>Purchase Agreement</B>&#148;), providing for the sale of common stock of
the Company for an initial payment of $162,366.15 and a second payment $259,786 in the event of the
closing of the transactions contemplated by the Asset Purchase Agreement by June&nbsp;30, 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;The parties hereto wish to amend the Purchase Agreement, as it relates to the date of the
closing of the transactions contemplated by the Asset Purchase Agreement, on the terms and
conditions set forth below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;Pursuant to the Section&nbsp;9.7 of the Purchase Agreement, the Purchase Agreement may be
amended in writing by the Company and by the Investors holding at least a majority of the then
outstanding Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, the parties hereto, intending to be legally bound, hereby agree as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;<U>Amendment to Purchase Agreement</U>. For valuable consideration, the receipt of which
is hereby acknowledged, the parties hereto hereby amend the last sentence of Section&nbsp;1.2 of the
Purchase Agreement to read in its entirety as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&#147;In the event that the closing of the Asset Purchase Agreement does not
occur prior to July&nbsp;6, 2007, the Escrow Funds shall be released to each
of the Investors in an amount equal to the amount paid into the Escrow
Fund by such Investor.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;<U>Miscellaneous</U>. Except as set forth in Section&nbsp;1 above, the Purchase Agreement is
not being amended hereby and shall remain in full force and effect in accordance with its terms.
This Amendment and all actions arising out of or in connection with this Amendment shall be
governed by and construed in accordance with the laws of the State of California, without regard to
the conflicts of law provisions of the State of California or of any other state. This Amendment
may be executed in any number of counterparts, each of which shall be an original, but all of which
together shall be deemed to constitute one instrument. All capitalized terms used but not defined
herein shall have the meaning therefor set forth in the Purchase Agreement.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties have caused this Amendment to be duly executed and delivered
by their proper and duly authorized officers as of the date and year first written above.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>

<TD colspan="3" align="left"><B>COMPANY:</B><br><br><B>SPATIALIZER AUDIO LABORATORIES, INC.,</B><BR>
a Delaware corporation<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>

<TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/
Henry Mandell</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Henry Mandell,<br>
Chairman&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">INVESTORS&#146;<BR>
COUNTERPART SIGNATURE PAGE TO<BR>
FIRST AMENDMENT TO<BR>
PURCHASE AGREEMENT
</DIV>


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    <TD width="15%">&nbsp;</TD>
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    <TD colspan="3" align="left"><B>INVESTORS:</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="center">/s/ Jay A. Gottlieb
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Jay A. Gottlieb&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="center">/s/ Greggory Schneider
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Greggory Schneider&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
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</TR>
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    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="center">/s/ Helaine Kaplan
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Helaine Kaplan&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
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    <TD colspan="5">&nbsp;</TD>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>v31613exv99w1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;99.1</B>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>CONTACT: INVESTOR RELATIONS</B>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Henry R. Mandell, Chairman<BR>
Spatializer Audio Laboratories, Inc.</B>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">spatializeraudiolabs@yahoo.com
</DIV>


<DIV align="center" style="font-size: 14pt; margin-top: 18pt"><B>SPATIALIZER AUDIO LABORATORIES CONSUMATES<BR>SALE OF ASSETS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Los Angeles, Calif., July&nbsp;2, 2007- </I>Spatializer Audio Laboratories, Inc. (OTC Bulletin Board:
SPAZ) (the &#147;Company&#148;) announced that on July&nbsp;2, 2007, the Company and its wholly-owned subsidiary,
Desper Products, Inc., a California corporation (&#147;Desper&#148;), consummated the sale of substantially
all of their assets pursuant to a certain Asset Purchase Agreement, dated September&nbsp;18, 2006 (the
&#147;Asset Purchase Agreement&#148;), with DTS, Inc., a Delaware corporation (&#147;DTS&#148;), and DTS BVI Limited, a
British Virgin Islands corporation and a wholly owned subsidiary of DTS (&#147;BVI&#148;), for an aggregate
cash purchase price of $1,000,000. DTS and BVI have also agreed to assume and to pay, perform and
discharge when due, all liabilities, obligations and commitments under certain specified contracts
(the &#147;Assumed Contracts&#148;) to the extent arising or relating to performance by the Company or Desper
after the date of closing, other than any liabilities arising due to any breach of any such Assumed
Contract by the Company or Desper. Prior to the closing, DTS and BVI assigned their respective
rights and obligations under the Asset Purchase Agreement to an indirect subsidiary of DTS, DTS
Licensing Limited, a company organized under the laws of Ireland and the parties to the Asset
Purchase Agreement extended the termination date of the Asset Purchase Agreement from June&nbsp;30, 2007
to July&nbsp;2, 2007.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Asset Purchase Agreement and the transactions contemplated therein were approved by the
stockholders of the Company at a special meeting on June&nbsp;15, 2007. Upon the conclusion of a nine
month indemnification period, the Company plans to distribute substantially all of its remaining
cash assets to its stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><B>About Spatializer</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Spatializer Audio Laboratories Inc. was a developer, licensor and marketer of next-generation
audio technologies for the consumer electronics, computing and mobile communication markets. The
company&#146;s advanced audio technology has been incorporated into consumer electronics audio and video
products, PC and mobile phone handsets from several global brand leaders. The Company has ceased
operations. Spatializer stock is
traded on the OTC Bulletin Board under the symbol: SPAZ. The company is headquartered in Thousand
Oaks, CA. Further information may be obtained from Spatializer&#146;s SEC filings, and by contacting the
company&#146;s Investor Relations Department at spatializeraudiolabs@yahoo.com.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Safe Harbor Act Statement Under the Private Securities Litigation Reform Act of 1995: Certain
information in this press release are forward looking statements that are based on management&#146;s
belief, as well as assumptions made by, and information currently available to management. While
the company believes that its expectations are based upon reasonable assumptions, there can be no
assurances that the company&#146;s financial goals will be realized. Numerous uncertainties and risk
factors may affect the company&#146;s actual results and may cause results to differ materially from
those expressed in forward-looking statements made by or on behalf of the company. These
uncertainties and risk factors include, but are not limited to the continued need for additional
capital, loss of key personnel, dependence on new technology and intellectual property, dependence
on the PC and consumer electronics industries, dependence on product shipments of third-party
licensees, dependence on third-party technology integrators or chip suppliers, competition and
pricing pressures, and other risks detailed from time to time in the company&#146;s periodic reports
filed with the Securities and Exchange Commission.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>NOTE: Desper Products Inc. is a wholly owned subsidiary of Spatializer Audio Laboratories Inc.
Spatializer<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP> is a registered trademark of Desper Products Inc. All other trademarks are the
property of their respective owners.</I>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><I>more</I>
</DIV>



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