Immersion Corporation Acquires Cybernet Haptic Systems. Combination creates Force Feedback Powerhouse

Immersion Corporation of San Jose, California, a leading provider of tools and technologies that allow users to physically feel their software, today announced the acquisition of Cybernet Haptic Systems of Ann Arbor, Michigan, a subsidiary of Cybernet Systems Corporation. Cybernet has been a leading developer of force feedback systems since 1988 and has pioneered many pivotal technologies for adding feel to mainstream computing environments. This business combination is seen by Immersion as a major milestone in solidifying Immersion's role as the market-leader in feel technology.

"The acquisition of Cybernet is a very exciting step for Immersion" said Dr. Louis Rosenberg, Immersion's president. "Cybernet has been a driving force behind feel simulation technologies for many years merging their work with our own will strengthen Immersion's existing markets as well as launch Immersion into new markets. This as an extremely synergistic business combination."

Dr. Charles Jacobus, President of Cybernet said, "We are looking forward to working with Immersion in the further development of force feedback products and technologies, especially in the Internet and simulation markets."

Cybernet has developed force feedback technologies for many industries, including medical simulation, computer gaming, computer aided design, military simulation, molecular modeling, and automotive engineering. Their innovations related to feel simulation are embodied in the comprehensive portfolio of intellectual property acquired by Immersion that includes U.S. Patents #5,389,865, #5,459,382, #5,629,594, #5,754,023, #5,769,640, #5,831,408, #5,844,392, and #5,872,438 as well as many pending patent applications. As a result of this acquisition, Immersion now holds a portfolio of over 100 issued and pending US patent applications in the force feedback technology area.

"We are thrilled to add this innovative pool of technology to our I-FORCE and FEELit technology portfolios," said Richard Abramson, Director of Litigation and Intellectual Property for Immersion Corporation. "This combination of Immersion and Cybernet technologies will enable Immersion to provide our licensees with the world's most diverse and comprehensive range of feel simulation technologies for incorporation into their force feedback peripheral devices."

I-FORCE is the technology unveiled by Immersion in 1995 that turns joysticks, steering wheels, and other computer peripherals into feel display devices, allowing users to experience realistic touch sensations. I-FORCE is ideal for computer gaming, enriching software by incorporating feel into the game play experience. Immersion has licensed I-FORCE to many major makers of home computer gaming peripherals including Logitech, ThrustMaster, CH Products, KYE, SC&T International, ANKO, ACT Labs, Primax, LMP, and others.

Immersion Corporation is also the inventor of the FEELit Mouse, a mouse-style interface that empowers all computer users with the ability to feel their software. From graphic design to surfing the Internet, the FEELit Mouse will fundamentally transform the way people engage their computers, allowing users to take advantage of their natural and informative sense of feel when interacting with software. For example, the implications of incorporating feel into web applications are vast, it will make remote shopping more satisfying, educational information more intuitive, and collaborative design more productive.

Immersion Corporation, a privately-held corporation, was founded in 1992 with a mission to develop technologies that add a sense of feel to mainstream computing, enabling users to physically "touch" and "feel" their software. Immersion's technologies address a wide range of applications from computer entertainment and medical simulation, to education and the Internet. For more information, visit www.force-feedback.com.