Immersion Licenses Patents to Electro Source for Its Pelican Brand Video Game Accessories; License and Settlement Agreements Settle Legal Differences.

SAN JOSE, Calif. -- Immersion Corporation, (Nasdaq:IMMR), a leading developer and licensor of touch feedback technology, and Electro Source LLC, maker of Pelican video game accessories, today announced settlement of the patent infringement litigation between the companies filed in September 2004.

In addition to the Confidential Settlement Agreement, Electro Source will have a worldwide license to Immersion's patents for vibro-tactile devices in the consumer gaming peripheral field of use. Electro Source will make royalty payments to Immersion based on sales by Electro Source of spinning mass vibro-tactile gamepads, steering wheels, and other game controllers for dedicated gaming consoles such as the Sony PlayStation and PlayStation2, the Nintendo GameCube, and the Microsoft Xbox and Xbox 360, in addition to certain other remuneration.

Both companies also have agreed to explore the possibility of working together in technology or engineering related assignments.

"We are extremely pleased to add Electro Source as an Immersion licensee. Over the past three years, Electro Source has increased its market share to become one of the top three sellers of video console accessories in the United States," said Victor Viegas, Immersion CEO. "We look forward to working with Electro Source in the future."

No further details of the terms of the settlement were disclosed.

About Immersion Corporation (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's technology is deployed across automotive, entertainment, medical training, mobility, personal computing, and three-dimensional simulation markets. Immersion's patent portfolio includes over 500 issued or pending patents in the U.S. and other countries.

About Electro Source, LLC (www.pelicanacc.com)

Pelican is the fastest growing video game peripherals company in the United States, providing a full line of accessories for all current and future video game platforms including PlayStation, PlayStation2, Xbox and Xbox 360, Nintendo 64, Nintendo GameCube, Game Boy Color , Game Boy Advance and Game Boy Advance SP. Product design, testing and research take place in the USA with the majority of manufacturing occurring in Asia. Pelican is headquartered in Vernon, California.

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 sales of vibro-tactile or force feedback peripheral devices for consumer gaming; any statements regarding consumer response that may occur as a result of having touch feedback in peripheral devices or consumer and market acceptance of touch feedback products in general; any statements regarding proposed products or services; any statements regarding future economic conditions or performance; statements of belief; and any statement or assumption 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 the licensed products or a delay in or failure to achieve the acceptance of touch 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 and the Immersion logo are trademarks of Immersion Corporation in the U.S. and other countries. All other trademarks are the property of their respective owners.