Immersion Corporation Plans to Divest Its 3D Business

SAN JOSE, Calif. : Immersion Corporation (NASDAQ: IMMR), the leading developer and licensor of touch feedback technology, today announced that it will divest its 3D line of business.

"Immersion’s global strategy is now focused on the largest and most potent growth markets in our portfolio, our medical and touch lines of business, and as a result we will divest our 3D line of business,” said Clent Richardson, Immersion’s president and CEO. “This decision was made following an exhaustive review of our strategy, key assets, core competencies, business operations, growth market opportunities and global aspirations. The divestiture of our 3D line of business will allow us to properly align our priorities, resources and energy as well as strengthen our focus on capturing the substantial and well recognized growth opportunities in the areas of medical and touch in markets around the world.”

Immersion’s 3D line of business consists of a variety of products in the areas of 3D digitizing, 3D measurement and inspection, and 3D interaction, supported by a strong global reseller network. Products include MicroScribe® digitizers, CyberGlove® family of products that capture motion and manipulate objects in virtual reality, and a SoftMouse® 3D positioning device. The products are used in a variety of end-markets worldwide including computer modeling, part inspections, reverse engineering, virtual design and prototyping, motion capture, animation, mapping, GIS surveys, and other applications.

“We expect to conclude this process in the first quarter of 2009. While we are not providing any financial projections relative to this matter, we anticipate that we will realize a reduction in operating expenses once we have transitioned out of this line of business,” said Stephen Ambler, Immersion’s chief financial officer.

Parties interested in the purchase of the 3D line of business may contact Kevin Gorey at Email Contact.

About Immersion ( www.immersion.com)

Founded in 1993, Immersion Corporation is the recognized leader in developing, licensing, and marketing digital touch technology and products. Using Immersion’s advanced touch feedback technology electronic user interfaces are more compelling, entertaining, and in many applications, safer and more productive. Immersion’s technology has helped manufacturers develop innovative and creative solutions for products such as hundreds of video games and leading video console gaming systems, medical training simulators installed around the world, driver controls for automotive manufacturers, and mobile phones, such as those from LG and Samsung. Immersion’s patent portfolio includes over 700 issued or pending patents in the U.S. and other countries.