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Press Release

Feb 07, 2000

Immersion to Strengthen Market Leading Position in Touch-Enabled Technology Through Acquisition of Haptech

Immersion to Strengthen Market Leading Position in Touch-Enabled Technology Through Acquisition of Haptech SAN JOSE, Calif. Feb. 7, 2000-- Immersion Signs Binding Letter of Intent to Acquire Haptic Technologies Inc.(Haptech)

Immersion Corporation, (Nasdaq:IMMR), the pioneering developer of sensory interaction technology, today announced that it has signed a binding letter of intent to acquire Montreal-based Haptic Technologies Inc. (Haptech) for a combination of Immersion common stock and cash currently valued between $6,000,000 and $7,000,000. Haptech is a leading developer of haptic computer peripherals and software technologies designed to simulate the sense of touch. Under the terms of the proposed acquisition, Haptech will remain a wholly-owned subsidiary and continue operations in Montreal, Canada. The closing of the acquisition is subject to execution of a definitive agreement relating to the acquisition and customary conditions.

Similar to Immersion, Haptech develops and markets hardware and software that brings the sense of touch to computing environments. The acquisition of Haptech' s technologies will complement Immersion's affordable consumer-oriented technologies. For example, it is anticipated that Immersion's TouchSense technology will be combined with Haptech's expertise in the visually impaired market, making the Internet more accessible to the 6.5 million visually impaired Americans, who have encountered barriers while navigating the Internet. Through these joint technologies, a person who is visually impaired will be able to navigate the Windows® environment by "feeling" buttons, menus, and icons, while being guided simultaneously by voice commands.

"Haptech has been an innovative technology developer, devoted to bringing the sense of touch to the computing world," said Immersion CEO, Dr. Louis Rosenberg. "They fit with our mission to bring the 3rd sense -- touch -- to every desktop. By leveraging the technologies of both companies and our expertise in haptics, we can deliver to consumers an affordable technology that will revolutionize how they interact with PCs and the Web."

Once the acquisition is consummated, Immersion will gain a number of Haptech's pending patents, as well as hardware and software applications, including TouchWeb(TM), a technology for making the Internet accessible to blind users. Once consummated, Immersion will also expand its development team with highly experienced Haptech engineers, who will continue to develop new and existing technologies.

"Our alliance with Immersion will bring about great innovations that will directly benefit consumers through enriched computing experiences," said Haptech President and CEO, Alain Pare. "We are looking ahead with Immersion to develop new touch-enabled technologies to benefit all computer users. Not only will people be able to experience sight and sound, while interfacing with the PC, but they will experience the sense of touch -- a sense that has been missing from computing until now."

"Combining these two leaders in haptics will create powerful synergies" said McGill University Professor Vincent Hayward, co-founder of Haptech.

About Haptech (www.haptech.com)

Based in Montreal, Haptech is a technology licensing company and a leading developer of haptic computer peripherals and software technologies that bring the sense of touch to the computer environment. Haptech has patent pending and patented sensors, motors and electronic systems. Haptech works with strategic alliance partners to develop innovative force feedback solutions for their markets. For more information on Haptech or new partnership opportunities, call 514/987-9800 or visit Haptech's web site at http://www.haptech.com.

About Immersion Corporation (www.immersion.com)

Founded in 1993, Immersion Corporation develops advanced hardware and software technologies that enable users to interact with computers using their sense of touch. Immersion's patented TouchSense(TM) technologies, enable computer peripheral devices to deliver tactile sensations that correspond to on-screen events. Immersion licenses its hardware and software technology, on which it holds 42 issued patents worldwide, to industry-leaders in order to integrate and implement its sensory feedback into professional simulation and modeling, consumer devices, and enabling technologies.

Statements made in this press release other than statements of historical fact are forward-looking statements, including those that reflect management's current forecast of certain aspects of the company's future. Forward-looking statements made in this press release are based on current information, which we have assessed but which by its nature is dynamic and subject to rapid and even abrupt changes. Forward looking statements include statements regarding the anticipated benefits of the acquisition, the capabilities of the technologies described above, and the ability of Immersion to integrate voice commands into its touch-enabling technologies. The company's actual results might differ materially from those stated or implied by such forward looking statements due to risks and uncertainties associated with the company's business which include, but are not limited to, delay in or failure to consummate the acquisition, unforeseen technical difficulties in integrating Haptech's technology into Immersion's products, the acceptance of touch-enabled technologies and products identified in this release, and general market and economic conditions.

Such risks and uncertainties are further outlined in Immersion's Prospectus dated November 12, 1999 included in its Registration Statement on Form S-1 filed with the Securities and Exchange Commission. These factors may not constitute all factors that could cause actual results to differ materially from those discussed in any forward-looking statement. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.