Ann Arbor, Michigan, December 14, 1999 -

Cybernet Systems Corporation today noted its position as the largest outside shareholder of Immersion Corporation (NASDAQ: IMMR), a leading provider of tools and technologies that allow users to physically feel their software. Cybernet's 9.9% ownership stake in the company is a direct result of Immersion's March 1999 acquisition of Cybernet's Force Feedback business and patent portfolio. Cybernet's 1,396,110 shares are worth $60 million at the current $43 share price.

"We're obviously extremely pleased with the demonstrated return on our investment in Immersion Corporation," noted Dr. Charles Jacobus, president and CEO of Cybernet. "As a company focused on developing and commercializing advanced technology, it was important to us to find a strong partner for our Force Feedback technology. It appears that Immersion has been extremely successful in productizing and widely licensing this technology."

Cybernet's innovations related to Force Feedback are embodied in the comprehensive portfolio of intellectual property acquired by Immersion that includes U.S.Patents No. 5,389,865, No. 5,459,382, No. 5,629,594, No. 5,754,023, No. 5,769,640, No. 5,831,408, No. 5,844,392, and No. 5,822,438 as well as many pending patent applications. Immersion has since licensed this technology to Logitech, Microsoft and many other leading computer software, peripheral and game manufacturers.

Founded in 1993, Immersion Corporation develops hardware and software technologies that enable users to interact with computers using their sense of touch. Immersion's patented technologies, which it calls TouchSense(TM), enable computer peripheral devices to deliver tactile sensations that correspond to on-screen events. Immersion licenses its TouchSense technology to hardware manufacturers for Web, personal computing, entertainment, medical and other applications.

Cybernet Systems Corp. is a profitable, rapidly growing research and development company focused on commercializing technology that combines software and Internet intelligence with man-machine interaction. Cybernet has successfully leveraged its wealth of intellectual property to bring Force Feedback technology to market in the form of game controllers and joysticks, and introduced the first Linux-based Internet appliance software. The company continues to innovate in the areas of Internet medical systems, large-scale distributed network training and gaming and gesture control interface technology. Additional information on Cybernet Systems is available on the web at http://www.cybernet.com.