Varatouch Announces New `Mini' Joystick Based On Its Innovative R2 Technology; MiniPoint is Ideal for Advanced Cell Phones, PDAs, Internet Appliances & Game Systems.

Business Editors/High-Tech Writers

SACRAMENTO, Calif.--(BUSINESS WIRE)--Dec. 29, 2000

Varatouch Technology Inc. (VTI) has released the latest in a series of new product releases based on its revolutionary Resistive Rubber (R2) Technology, MiniPoint. MiniPoint represents the culmination of intensive effort to produce the world's best miniature joystick products for computing, telecommunications, consumer electronics, and electronic gaming.

Coming on the heels of VaraPoint and MicroPoint, MiniPoint blends the best features of both products, with few compromises. The joystick itself, the part the user actually touches, is similar in size to that found on the company's larger VaraPoint. This gives the user a comfortable pointing experience, a vital requirement for something they will use daily on a frequent basis. Although "big" in comfort, the underlying sensor is only approximately 3mm larger than the company's MicroPoint, the world's smallest ultra-miniature joystick. This blending of big joystick feel with very small component size makes MiniPoint an attractive combination to users, manufacturers, and design engineers.

"We're very excited to release MiniPoint," said Michael Rogers, VTI president and CEO. "MiniPoint incorporates all the lessons we have learned about R2 Technology, from mechanical and electrical design to advanced firmware code, and we believe it represents the leading edge in pointer development, bar none."

MiniPoint is supported by the company's hardware reference designs, and by PointWare II firmware. PointWare II gives all R2 sensor products unparalleled pointing performance and reliability.

MiniPoint is available first as a "non-switch" model, and requires external button support for left and right mouse clicks. However, MiniPoint will be available with an integral switch in the first quarter of 2001. The inclusion of the switch makes MiniPoint a true "point-and-click" input device, with no need for an external left mouse button for left mouse click or mouse drag capability.

VTI Vice President of Sales and Marketing Bruce Pocock said the company already has design wins with the new MiniPoint sensor. "Customers have been asking for an R2 Technology sensor with this feature set, and initial reactions have been very positive," Pocock said. "We feel that this device is ideally positioned to capitalize on the opportunity in cellular phones, digital set-top boxes, and computer pointing applications, and we expect to announce our first customer product using MiniPoint very soon."

VTI unveiled its revolutionary R2 ("R Squared") Technology in December of 1998. The technology is based on a low cost, carefully blended mixture of silicone rubber and carbon that transforms the material into a variable rate electrical resistor. It can be used wherever there is a need for low cost, highly reliable variable rate input controls, switches, dials, panels or knobs that translate human touch into digital data in everything from computers, stereos and cars to cell phones, electronic games controllers, airplanes and microwave ovens.

What makes R2 Technology so superior is its inherent ability to combine the mechanical and electrical properties of traditional analog-based variable rate devices into a streamlined sensor component ideal for today's digital world.

About Varatouch Technology Inc.

VTI is a privately held corporation based in Sacramento that was founded in 1987 by Michael Rogers. The company initially manufactured innovative and specialty IR hand held remote controls for computers, projectors and other multi-media presentation and display equipment. In 1997, the company embarked on an aggressive campaign to develop its R2 Technology.

Note to Editors: In "Resistive Rubber (R2) Technology," the 2 in R2 is superscript.