Immersion Receives U.S. Army and NIH Contracts to Advance Medical Training Simulators.

Business Editors/Health/Medical Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--Oct. 21, 2003

New Contracts to Improve Quality of Diagnosis and Treatment for

Patients with Ureter, Renal, Pancreatic and Cystic Duct Disorders

Immersion Corporation (Nasdaq:IMMR) today announced it has received two research contracts from the U.S. Army and the National Institutes of Health (NIH) for $730,000 and $494,000, respectively. The new contracts will go toward the development of training simulators that engage a medical professional's sense of touch, rather than just sight and sound, during the practice of minimally invasive procedures, such as ureteroscopies and endoscopic retrograde cholangiopancreatographies. Immersion Medical's simulators make it possible to feel textural changes, such as the pliability of normal mucosa versus urinary or biliary stones, that provide important cues on depth, direction and the type of tissue involved. Medical professionals can practice on a wide-ranging set of programmable digital patients before trying new, difficult procedures on real patients. The models also integrate a responsive physiology as well as respond to inappropriate techniques that usually result in complications.

The U.S. Army contract is being used to develop a comprehensive, field-ready, computer-based simulation for training in therapeutic ureteroscopy for the Army's Medical Research and Materiel Command in Fort Detrick, Md. The resulting new design will combine elements from two successful advanced simulation platforms for training in operative hysteroscopy and endovascular procedures. The system is expected to help medical professionals acquire, maintain and assess skills needed for important therapeutic interventions, such as removing urinary stones with the renal calyxes and / or ureters. This work is supported by the U.S. Army Medical Research and Materiel Command under Contract No. DAMD17-03-C-0052.

Similarly, the new contract from the National Institute of Diabetes and Digestive and Kidney Diseases at the NIH in Bethesda, Md., grant number 2 R44 DK055447-02A1, will go toward the development of an additional module onto the validated AccuTouch(R) Endoscopy platform for interventional radiologists, gastroenterologists and surgeons. Therapeutic ERCP module will include training in sphincterotomy, stone extraction, and stent placement within the cystic and pancreatic ducts, which are important in the treatment of gallbladder, pancreatic and liver disorders.

"These contracts will advance the quality of medical care by enabling surgeons and other medical professionals to gain realistic practice with difficult procedures before touching a real patient. Tactile feedback adds a dimension of competency that can't be taught through sight and sound alone," said Richard Stacey, Vice President and General Manager of Immersion Medical, Inc. "We're honored by the trust these organizations have shown for our company's intellectual capital and our ability to transform inventions into practical tools for saving lives."

Immersion's Medical simulators are in use at Harvard, Stanford, Johns Hopkins, Mayo Clinic and other teaching hospitals throughout the nation. With Immersion Medical's technology, medical professionals learn, practice and gain objective feedback in risk-free training environments that incorporates tactile and kinesthetic realism.

About Immersion (www.immersion.com)

Founded in 1993, Immersion Corp. is a recognized leader in developing, licensing and marketing haptic technology and products. Bringing value to markets where user/product 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 personal computing, entertainment, medical training, automotive and three-dimensional simulation markets. Immersion and its wholly owned subsidiaries hold more than 190 issued patents worldwide.

Immersion Medical, Inc. based in Gaithersburg, Md. -- formerly HT Medical Systems, Inc. -- is a wholly owned subsidiary of Immersion Corp. The company designs, manufactures and markets computer-based medical training simulation systems worldwide. The systems integrate proprietary computer software and tactile feedback robotics with new economical, high-powered computers to simulate highly realistic medical procedures. The company's three key product lines are the CathSim(R) Vascular Access Simulator, the AccuTouch Endoscopy Simulator and the AccuTouch Endovascular Simulator.

Forward Looking Statements

Statements made in this media alert other than statements of historical fact are forward-looking statements, including those that reflect management's current forecast of certain aspects of Immersion'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 development, performance, and market acceptance of touch-enabled medical training technology. 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 touch-enabled medical simulation technology products.

Risks and uncertainties related to Immersion's business in addition to those described above are further outlined in Immersion's Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. These reports are 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. Immersion 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.

The views, opinions and/or findings contained in this report are those of the author(s) and should not be construed as an official Department of the Army position, policy or decision unless so designated by other documentation.

CathSim, AccuTouch, and Immersion are trademarks of Immersion Corporation.