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Immersion Enters into Multi-Year License Agreement with Continental

Immersion Corporation (Nasdaq:IMMR), the leading developer and licensor of touch feedback technology, today announced that it has entered into a multi-year licensing arrangement with Continental. With around 182,000 employees in 49 countries, Continental is one of the leading automotive suppliers worldwide.

Under the agreement, Continental is licensed to incorporate Immersion’s advanced haptic technologies for touchscreen, touch pad and touch panel interfaces in Continental’s automotive solutions. Haptic technologies enhance the usability of in-car interfaces, making it safer for drivers to interact with their automotive systems while they are on the road.

Haptic technologies bring heightened realism and powerful feedback mechanisms to today’s touch interfaces and, when used in automotive navigation and entertainment systems, can provide critical confirmation cues, reduce distractions to create a safer and more intuitive driver experience. In addition, haptics offer designers flexibility to create unique, highly customized interior design throughout the car, in many cases at a lower cost than implementing similar capabilities through mechanical equivalents.

“Immersion’s technology is driving innovation in next generation of touch interfaces throughout the automotive interior. We’re working with automotive suppliers and OEMs to enable them to create unique user experiences that are intuitive and safe to operate,” explains Dennis Sheehan, senior vice president of sales and marketing at Immersion. “Continental’s adoption of Immersion haptic technology puts them on the leading edge of automotive solutions providers.”

For more information on Immersion’s automotive technology, visit http://automotive.immersion.com

About Immersion (www.immersion.com)

Founded in 1993, Immersion (NASDAQ: IMMR) is the leading innovator in haptics, or tactile effects; the company's touch feedback solutions deliver a more compelling sense of the digital world. Using Immersion's high-fidelity haptic systems, partners can transform user experiences with unique and customizable touch feedback effects; excite the senses in games, videos and music; restore "mechanical" feel by providing intuitive and unmistakable confirmation; improve safety by overcoming distractions while driving or performing a medical procedure; and expand usability when audio and visual feedback are ineffective. Immersion's TouchSense technology provides haptics in mobile phone, automotive, gaming, medical and consumer electronics products from world-class companies. With over 1,650 issued or pending patents in the U.S. and other countries, Immersion helps bring the digital universe to life. Hear what we have to say at blog.immersion.com.

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, but not limited to, statements regarding future Continental products, the continued availability of Continental’s current products, the continuing integration of Immersion solutions into Continental’s products, and future collaboration between Immersion and Continental.

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: unanticipated difficulties and challenges encountered in product development efforts by Immersion and its licensees; adverse outcomes in any future intellectual property-related litigation and the costs related thereto; the effects of the current macroeconomic climate; delay in or failure to achieve commercial demand for Immersion's products or third party products incorporating Immersion's technologies; and a delay in or failure to achieve the acceptance of touch feedback as a critical user experience. Many of these risks and uncertainties are beyond the control of Immersion.

For a more detailed discussion of these factors, and other factors that could cause actual results to vary materially, interested parties should review the risk factors listed in Immersion's most current Form 10-Q on file with the U.S. Securities and Exchange Commission. The forward-looking statements in this press release reflect Immersion's beliefs and predictions as of the date of this release. Immersion 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.

The use of the words "partners" in this press release does not mean legal partners.

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.

(IMMR - C)

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