SAN JOSE, Calif., Dec 14, 2005 (BUSINESS WIRE) -- Immersion Corporation (Nasdaq:IMMR), a leading developer and licensor of touch feedback technology, today announced that Volkswagen AG (LSE:VKW) has signed a license agreement allowing use of Immersion technology for control panels in its passenger vehicles.

The technology supplies tactile, or haptic, cues, so that instead of just feeling the hard surface of virtual control panels, users perceive that buttons depress and release, just as physical buttons and switches do. Automotive control systems enhanced with Immersion's technology will help reduce glance times and distractions for drivers accessing in-car information. The technology works by supplying haptic feedback in response to programmed effects that vary in frequency, waveform, magnitude, and duration. The result is that all sorts of on-screen buttons, switches, and other controls can supply distinct sensations to allow greater discrimination for users and more extensive applications for the control system interface. In cars, these applications include navigation, climate, and entertainment controls.

"We believe that advanced automotive controls are important to enhancing the driving experience and simplifying a growing number of functions within the car," said Dr. Volkmar Tanneberger, head of Electronic Functions Development Department, Volkswagen AG. "We see Immersion's haptic technology as an important element in providing a better driving experience."

"Use of our technology in automotive infotainment systems is completely new," said Mike Zuckerman, senior vice president and general manager of Immersion's Automotive and Industrial business unit. "It's a distinctive way to provide the type of engaging response and rich tactile information that consumers like about physical controls, the authentic feel of pushing a button or depressing a membrane switch. And it's just one of several haptic implementations that we have for car controls."

About Immersion (www.immersion.com)

Founded in 1993, Immersion Corporation is a recognized leader in developing, licensing, and marketing digital touch technology and products. Bringing value to markets where man-machine interaction needs to be made more compelling, safer, or productive, Immersion helps its partners broaden market reach by making the use of touch feedback as critical a user experience as sight and sound. Immersion technology is deployed across automotive, entertainment, medical training, mobility, personal computing, and three-dimensional simulation markets. Immersion's patent portfolio includes over 500 issued and pending patents in the United States and other countries.

About Volkswagen AG (www.volkswagen.com)

Volkswagen Group operates 47 production plants in 11 European countries plus seven countries in the Americas, Asia, and Africa. Around the world more than 320,000 employees produce over 21,500 vehicles per day or are involved in vehicle-related services. The Volkswagen Group sells its vehicles in more than 150 countries.

Forward-looking Statements

This press release contains "forward-looking statements" that involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause the results of Immersion Corporation and its consolidated subsidiaries to differ materially from those expressed or implied by such forward-looking statements. All statements, other than the statements of historical fact, are statements that may be deemed forward looking statements, including any projections of earnings, revenues, or other financial matters; any statements of the plans, strategies, and objectives of management for future operations; any statements concerning the benefits of Immersion's touch feedback technology for consumers, operators, and manufacturers of touchscreens and electronic devices for use in automotive control systems or consumer and market acceptance of force feedback products in general; proposed products or services; any statements regarding future economic conditions or performance; statements of belief; and any statement or assumptions underlying any of the foregoing. Immersion's actual results might differ materially from those stated or implied by such forward-looking statements due to risks and uncertainties associated with Immersion's business which include, but are not limited to, delay in or failure to achieve commercial demand for Immersion's products or a delay in or failure to achieve the acceptance of force feedback as a critical user experience.

For a more detailed discussion of these factors, and other factors that could cause the Company's actual results to vary materially, interested parties should review the risk factors listed in the Company's most current Form 10-Q, which is on file with the U.S. Securities and Exchange Commission. The forward-looking statements in this press release reflect the Company's beliefs and predictions as of the date of this release. The Company disclaims any obligation to update these forward-looking statements as a result of financial, business, or any other developments occurring after the date of this release.

Immersion, the Immersion logo, and TouchSense are trademarks of Immersion Corporation in the United States and other countries. All other trademarks are the property of their respective owners.

SOURCE: Immersion Corporation

A&R Partners
Elizabeth Conrady, 650-762-2815
econrady@arpartners.com

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