<SUBMISSION>
<ACCESSION-NUMBER>0001157523-08-001865
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20080227
<ITEMS>2.02
<ITEMS>4.02
<ITEMS>9.01
<FILING-DATE>20080228
<DATE-OF-FILING-DATE-CHANGE>20080228
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>IMMERSION CORP
<CIK>0001058811
<ASSIGNED-SIC>3577
<IRS-NUMBER>943180138
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>000-27969
<FILM-NUMBER>08651180
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>801 FOX LANE
<CITY>SAN JOSE
<STATE>CA
<ZIP>95131
<PHONE>4084671900
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>801 FOX LANE
<CITY>SAN JOSE
<STATE>CA
<ZIP>95131
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>IMMERSION HUMAN INTERFACE CORP
<DATE-CHANGED>19980602
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a5622520.htm
<DESCRIPTION>IMMERSION CORPORATION 8-K
<TEXT>
<html>
  <head>
    <title></title>
<!--Copyright 2008 Business Wire, a Berkshire Hathaway company.-->
<!--All rights reserved www.businesswire.com-->
  </head>
  <body style="font-size: 10pt; font-family: Times New Roman">
    <p style="text-align: center">
      <font style="font-size: 12pt; font-family: Times New Roman">UNITED STATES</font><font style="font-size: 12pt; font-family: Times New Roman"><br style="font-size: 12pt; font-family: Times New Roman"></font><font style="font-size: 12pt; font-family: Times New Roman">SECURITIES
      AND EXCHANGE COMMISSION</font><br><font style="font-size: 12pt; font-family: Times New Roman">Washington,
      D.C. 20549</font><br><b><font style="font-family: Times New Roman">______________</font></b><br>
    </p>
    <p style="text-align: center">
      <b><font style="font-size: 12pt; font-family: Times New Roman">FORM 8-K</font></b><br><br><b><font style="font-size: 12pt; font-family: Times New Roman">CURRENT
      REPORT</font></b><br><br><b><font style="font-size: 12pt; font-family: Times New Roman">
      Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</font></b><br><br><font style="font-size: 10pt; font-family: Times New Roman">Date
      of Report (Date of earliest event reported): February 27, 2008</font><br><br><br>
    </p>
    <p style="text-align: center">
      <b><font style="font-size: 12pt; font-family: Times New Roman">IMMERSION&#160;CORPORATION</font></b><br><font style="font-size: 10pt; font-family: Times New Roman">(Exact
      name of registrant as specified in its charter)</font><br><b><font style="font-family: Times New Roman">______________</font></b><br>
    </p>
    <table style="font-size: 10pt; width: 100%; margin-bottom: 10.0px; font-family: Times New Roman; text-align: center" cellspacing="0">
      <tr>
        <td style="padding-left: 0.0px; border-bottom: solid black 1.0pt; width: 30%; text-align: center" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Delaware
          </p>
        </td>
        <td style="width: 4%">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; width: 32%; padding-right: 0.0px; text-align: center" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            000-27969
          </p>
        </td>
        <td style="width: 4%">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; width: 30%; padding-right: 0.0px; text-align: center" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            94-3180138
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; width: 30%; text-align: center" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (State or other jurisdiction of
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            incorporation)
          </p>
        </td>
        <td style="width: 4%">

        </td>
        <td style="padding-left: 0.0px; width: 32%; text-align: center" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (Commission File Number)
          </p>
        </td>
        <td style="width: 4%">

        </td>
        <td style="padding-left: 0.0px; width: 30%; text-align: center" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (IRS Employer Identification No.)
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
      </tr>
    </table>
    <p style="text-align: center">
      <b><font style="font-family: Times New Roman">______________</font></b><br>
    </p>
    <table style="font-size: 10pt; width: 100%; margin-bottom: 10.0px; font-family: Times New Roman" cellspacing="0">
      <tr>
        <td style="padding-left: 0.0px; text-align: center" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            801 Fox Lane
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            San Jose, California&#160;&#160;95131
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <font style="font-size: 10pt; font-family: Times New Roman">(Address
            of principal executive offices) (Zip Code)</font>
          </p>
        </td>
      </tr>
    </table>
    <p style="text-align: center">
      <b><font style="font-family: Times New Roman">______________</font></b><br><br>Registrant&#8217;s
      telephone number, including area code:&#160;(408) 467-1900<br><br><br><font style="font-size: 10pt; font-family: Times New Roman">Not
      Applicable</font><br><font style="font-size: 10pt; font-family: Times New Roman">(Former
      name or former address, if changed since last report)</font>
    </p>
    <p>

    </p>
    <p>
      <font style="font-size: 10pt; font-family: Times New Roman">Check the
      appropriate box below if the Form 8-K filing is intended to
      simultaneously satisfy the filing obligation of the registrant under any
      of the following provisions:</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</font>
    </p>
    <div style="margin-bottom: 10pt; width: 100%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="font-size: 10pt; font-family: Times New Roman; text-align: center">
          1
        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p>
      <b><font style="font-size: 10pt; font-family: Times New Roman">Item
      2.02&#160;&#160;&#160;&#160;&#160;Results of Operations and Financial Condition. </font></b>
    </p>
    <p style="font-size: 10pt; text-indent: 30.0px; font-family: Times New Roman">
      The information in Item 2.02 of this Current Report on Form 8-K and
      Exhibit 99.1 attached hereto shall not be deemed to be &quot;filed&quot; for the
      purposes of Section 18 of the Securities Exchange Act of 1934, as
      amended, or otherwise subject to the liabilities of that section or
      Sections 11 or 12(a)(2) of the Securities Act of 1933, as amended. The
      information contained herein and in the accompanying Exhibit&#160;99.1 shall
      not be deemed to be incorporated by reference into any filing with the
      Securities and Exchange Commission (the &quot;SEC&quot;) made by Immersion
      Corporation (&quot;Immersion&quot;) whether before or after the date hereof,
      regardless of any general incorporation language in such filing, unless
      expressly incorporated by specific reference in such filing.
    </p>
    <p style="font-size: 10pt; text-indent: 30.0px; font-family: Times New Roman">
      On February&#160;28, 2008, Immersion issued a press release (the &quot;Press
      Release&quot;) announcing Immersion&#8217;s financial results for the quarter and
      year ended December 31, 2007. A copy of the Press Release is attached as
      Exhibit 99.1 to this Current Report on Form 8-K and is incorporated
      herein by reference.
    </p>
    <p>
      <b><font style="font-size: 10pt; font-family: Times New Roman">Item
      4.02&#160;&#160;&#160;&#160;&#160;</font>Non-Reliance on Previously
      Issued Financial Statement or a Related Audit Report or Completed
      Interim Review.</b>
    </p>
    <p style="text-align: left">
      (a)&#160;&#160;&#160;&#160;&#160;&#160;&#160; On February&#160;27, 2008, the management of Immersion concluded,
      and the Audit Committee of the Board of Directors agreed, that the
      previously filed condensed consolidated financial statements contained
      in Immersion&#8217;s Forms 10-Q for the quarterly periods ended March 31,
      2007, June&#160;30, 2007 and September&#160;30, 2007 (the &quot;Quarterly Financial
      Statements&quot;) should no longer be relied upon due to errors in the
      accounting of income taxes for 1) the release of deferred income tax
      valuation allowance related to stock option deductions for prior years
      and 2) utilization of an incorrect effective state tax rate. We have now
      determined that the release of the deferred income tax valuation
      allowance related to stock option deductions should have been recorded
      as an increase to additional paid in capital within stockholders&#8217; equity
      rather than as a benefit to income tax expense. Further, Immersion
      concluded that the effective state income tax rate utilized in the
      determination of state income taxes should have been lower.
    </p>
    <p style="font-size: 10pt; text-indent: 30.0px; font-family: Times New Roman">
      As a result of these errors, the provision for income taxes for the
      three, six and nine month periods ended March 31, 2007, June 30, 2007
      and September 30, 2007, respectively, was understated by $6.6 million.
      The impact of the errors on the condensed consolidated balance sheets
      was to overstate income tax liabilities by $0.7 million, understate
      deferred tax assets by $0.3 million and understate stockholders&#8217; equity
      by a net $1.0 million.
    </p>
    <p style="font-size: 10pt; text-indent: 30.0px; font-family: Times New Roman">
      As a result, management concluded that the Condensed Consolidated
      Balance Sheets, Condensed Consolidated Statements of Operations and
      Condensed Consolidated Statements of Cash Flows reported in Immersion&#8217;s
      Quarterly Financial Statements, and related discussion of provision for
      income taxes in Management&#8217;s Discussion and Analysis of Financial
      Condition and Results of Operations, should be restated in order to
      correct these errors.
    </p>
    <div style="margin-bottom: 10pt; width: 100%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="font-size: 10pt; font-family: Times New Roman; text-align: center">
          2
        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="font-size: 10pt; text-indent: 30.0px; font-family: Times New Roman">

    </p>
    <p style="font-size: 10pt; text-indent: 30.0px; font-family: Times New Roman">
      The restatement will be reflected in the presentation of quarterly
      financial information in Immersion&#8217;s 2007 annual report on Form 10-K
      that is expected to be filed on March&#160;17, 2008. Immersion plans to
      restate the 2007 first, second and third quarter condensed consolidated
      financial statements prospectively when it files the 2008 first, second
      and third quarter condensed consolidated financial statements. When
      Immersion files its annual report on Form 10-K for the year ended
      December 31, 2007 to effect the restatement described above, management
      expects Immersion to report the existence of a material weakness in
      Immersion&#8217;s internal control over financial reporting relating to its
      accounting for income taxes.
    </p>
    <p style="font-size: 10pt; text-indent: 30.0px; font-family: Times New Roman">
      The restatements discussed above will not change Immersion&#8217;s previously
      reported revenue, operating income, or cash balances, for any of the
      aforementioned periods.
    </p>
    <p style="font-size: 10pt; text-indent: 30.0px; font-family: Times New Roman">
      Management and the Audit Committee discussed these matters with
      Immersion&#8217;s independent registered public accounting firm, Deloitte &amp;
      Touche LLP.
    </p>
    <p style="font-size: 10pt; text-indent: 30.0px; font-family: Times New Roman">

    </p>
    <p>
      <b><font style="font-size: 10pt; font-family: Times New Roman">Item
      9.01&#160;&#160;&#160;&#160;&#160;Financial Statements and Exhibits. </font></b>
    </p>
    <p style="white-space: nowrap; margin-left: 30.0px">
      <b>&#160;(d)&#160;&#160;&#160;&#160;&#160;&#160;Exhibits. </b>
    </p>
    <table style="font-size: 10pt; width: 100%; margin-bottom: 10.0px; font-family: Times New Roman" cellspacing="0">
      <tr>
        <td style="padding-left: 0.0px; width: 15%; text-align: center" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u>Exhibit No.</u>
          </p>
        </td>
        <td style="padding-left: 0.0px; width: 85%; text-align: center" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u>Description</u>
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 15%">

        </td>
        <td style="padding-left: 0.0px; width: 85%; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; white-space: nowrap; width: 15%; padding-right: 0.0px; text-align: center" valign="top">
          99.1
        </td>
        <td style="padding-left: 0.0px; width: 85%; text-align: left" valign="top">
          Press Release dated February 28, 2008 regarding financial
          information for Immersion for the quarter and year ended December
          31, 2007.
        </td>
      </tr>
    </table>
    <p>

    </p>
    <div style="margin-bottom: 10pt; width: 100%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="font-size: 10pt; font-family: Times New Roman; text-align: center">
          3
        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p style="text-indent: 30.0px">
      <font style="font-size: 10pt; font-family: Times New Roman">Pursuant to
      the requirements of the Securities Exchange Act of 1934, as amended, the
      Registrant has duly caused this report to be signed on its behalf by the
      undersigned hereunto duly authorized.</font>
    </p>
    <table style="font-size: 10pt; width: 100%; margin-bottom: 10.0px; font-family: Times New Roman" cellspacing="0">
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td colspan="2" style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>IMMERSION CORPORATION</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td colspan="2" style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td colspan="2" style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; padding-bottom: 2.0px; width: 5%; text-align: left" valign="top">
          Date:
        </td>
        <td style="padding-left: 0.0px; padding-bottom: 2.0px; width: 45%; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            February 28, 2008
          </p>
        </td>
        <td style="padding-left: 0.0px; padding-bottom: 2.0px; width: 5%; text-align: left" valign="top">
          By:
        </td>
        <td style="padding-left: 0.0px; border-bottom: solid black 1.0pt; width: 45%; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            /s/ Stephen M. Ambler
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td style="width: 5%">

        </td>
        <td style="padding-left: 0.0px; width: 45%; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Stephen M. Ambler
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td style="width: 5%">

        </td>
        <td style="padding-left: 0.0px; width: 45%; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Chief Financial Officer and Vice President,
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td style="width: 5%">

        </td>
        <td style="padding-left: 0.0px; width: 45%; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Finance
          </p>
        </td>
      </tr>
    </table>
    <p>

    </p>
    <div style="margin-bottom: 10pt; width: 100%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-align: center">
      <font style="font-size: 10pt; font-family: Times New Roman"><u>EXHIBIT
      INDEX</u></font><br><br><br>
    </p>
    <table style="font-size: 10pt; width: 100%; margin-bottom: 10.0px; font-family: Times New Roman" cellspacing="0">
      <tr>
        <td style="padding-left: 0.0px; width: 15%; text-align: center" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u>Exhibit No.</u>
          </p>
        </td>
        <td style="padding-left: 0.0px; width: 85%; text-align: center" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u>Description</u>
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 15%">

        </td>
        <td style="padding-left: 0.0px; width: 85%; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; white-space: nowrap; width: 15%; padding-right: 0.0px; text-align: center" valign="top">
          99.1
        </td>
        <td style="padding-left: 0.0px; width: 85%; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Press Release dated February 28, 2008 regarding financial
            information for Immersion for the quarter and year ended December
            31, 2007.
          </p>
        </td>
      </tr>
    </table>
    <p>

    </p>
  </body>
</html>
<!--<!DOCTYPE html
     PUBLIC "-//W3C//DTD XHTML 1.0 Strict//EN"
     "http://www.w3.org/TR/xhtml1/DTD/xhtml1-strict.dtd">-->
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a5622520-ex991.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<html>
  <head>
    <title></title>
<!--Copyright 2008 Business Wire, a Berkshire Hathaway company.-->
<!--All rights reserved www.businesswire.com-->
  </head>
  <body style="font-size: 8pt; font-family: Times New Roman">
    <p style="text-align: right">
      <b>Exhibit 99.1</b>
    </p>
    <p style="text-align: center">
      <b><font style="font-size: 12pt; font-family: Times New Roman">Immersion
      Corporation Reports Fourth Quarter 2007 Financial Results</font></b>
    </p>
    <p>
      SAN JOSE, Calif.--(BUSINESS WIRE)--Immersion Corporation (NASDAQ:IMMR),
      a leading developer and licensor of touch feedback technology, today
      announced its fourth quarter 2007 financial results. Revenues were $9.9
      million for the quarter ended December 31, 2007 or 15 percent higher
      when compared to revenues of $8.6 million for the fourth quarter of 2006.
    </p>
    <p>
      Net income for the fourth quarter was $0.5 million compared to a net
      loss of $(2.0) million for the fourth quarter of 2006. Diluted earnings
      per share were $0.02 for the quarter compared to $(0.08) loss per share
      for the fourth quarter of 2006.
    </p>
    <p>
      Revenues were $34.7 million for the year ended December 31, 2007
      compared to revenues of $27.9 million for the year ended December 31,
      2006, an increase of 25 percent. Net income for the year ended December
      31, 2007 was $117.0 million, or $3.71 diluted earnings per share,
      compared to a net loss of $(10.4) million, or $(0.42) loss per share,
      for the year ended December 31, 2006.
    </p>
    <p>
      As of December 31, 2007, Immersion had cash, cash equivalents, and
      short-term investments totaling $138.1 million compared to $137.2
      million as of September 30, 2007.
    </p>
    <p>
      &#8220;In 2007, Immersion achieved revenue growth of 25 percent and
      profitability in each of the four quarters,&#8221; said Victor Viegas,
      Immersion CEO, president, and chairman of the board. &#8220;We have
      substantial organic growth opportunities in our medical, mobility, and
      touch interface products businesses. We have a strong balance sheet that
      allows us to increase investment in new product development and in sales
      and marketing to drive a faster pace of customer adoption of our
      products and technologies worldwide.&#8221;
    </p>
    <p>
      The Company has determined that a correction is needed to the previously
      issued financial reports for the three months ended March 31, 2007 and
      for the six and nine months ended June 30, 2007 and September 30, 2007,
      respectively. The Company has determined that in the March 31, 2007
      quarter, it understated income tax expense by $6.6 million. The net
      correction was the result of overestimating state income tax expense,
      offset by an error in releasing valuation allowance to income tax
      expense related to stock option deductions for prior years. This
      correction has no effect on revenue, operating income, or cash balances.
      The impact of these corrections is to increase previously reported
      income tax expense by $6.6 million, reduce income tax liability by $0.7
      million, increase deferred tax assets by $0.3 million, and increase
      stockholders&#8217; equity by a net $1.0 million. Please refer to the Form 8-K
      filed with the Securities and Exchange Commission&#160;today for details on
      the correction. The Company&#8217;s consolidated financial statements as of
      and for the year ended December 31, 2007 reflect the impact of the
      correction described in the Form 8-K.
    </p>
    <div style="margin-left: 0pt; width: 100%; margin-bottom: 10pt; text-indent: 0pt; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      Immersion will host a conference call with company management on
      Thursday, February 28, 2007 at 5:00 p.m. Eastern time to discuss
      operating results for the fourth quarter ended December 31, 2007. A
      question and answer session will follow. To listen to the call, dial +1
      800.374.2366 approximately five minutes prior to the start of the call
      and enter confirmation number 29315103. The call will be archived and
      available for replay until March 7, 2008, by dialing +1 800.642.1687 and
      entering confirmation number 29315103. The call will also be simulcast
      on the Internet through Immersion Corporation&#8217;s Web site,
      http://www.immersion.com. An audio replay of the call will be archived
      and available at <u>www.immersion.com</u> for replay until February 28,
      2009.
    </p>
    <p>
      <b>About Immersion (www.immersion.com)</b>
    </p>
    <p>
      Founded in 1993, Immersion Corporation is a recognized leader in
      developing, licensing, and marketing digital touch technology and
      products. Using Immersion&#8217;s advanced touch feedback technology
      (www.immersion.com/corporate/products/), electronic user interfaces can
      be made more productive, compelling, entertaining, or safer. Immersion&#8217;s
      technology is deployed across automotive, entertainment, industrial
      controls, medical training, mobility, and three-dimensional simulation
      markets. Immersion&#8217;s patent portfolio includes over 700 issued or
      pending patents in the U.S. and other countries.
    </p>
    <p>
      <b>Forward-Looking Statements</b>
    </p>
    <p>
      This press release contains &#8220;forward-looking statements&#8221; that involve
      risks and uncertainties as well as assumptions that, if they never
      materialize or prove incorrect, could cause the results of Immersion
      Corporation and its consolidated subsidiaries to differ materially from
      those expressed or implied by such forward-looking statements.
    </p>
    <p>
      All statements, other than the statements of historical fact, are
      statements that may be deemed forward-looking statements, including any
      projections of earnings, revenues, profitability targets or other
      financial matters; any statements of the plans, strategies, and
      objectives of management for future operations; any statements relating
      to Immersion&#8217;s ability to maintain effective internal control over
      financial reporting and disclosure controls and procedures; any
      statements regarding consumer or market acceptance of touch feedback
      products in general; future development of force feedback products;
      proposed products or services; any statements regarding future economic
      conditions or performance; and statements of belief or assumptions
      underlying any of the foregoing. Immersion&#8217;s actual results might differ
      materially from those stated or implied by such forward-looking
      statements due to risks and uncertainties associated with Immersion&#8217;s
      business, which include but are not limited to delay in or failure to
      achieve commercial demand for Immersion&#8217;s expanded technology offerings;
      a delay in or failure to achieve the acceptance of force feedback as a
      critical user experience in new and existing markets for our business
      segments; and risks and uncertainties associated with ongoing and
      prospective litigation.
    </p>
    <div style="margin-bottom: 10pt; width: 100%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      For a more detailed discussion of these factors and other factors that
      could cause Immersion&#8217;s actual results to vary materially, interested
      parties should review the risk factors listed in Immersion&#8217;s most
      current Form 10-Q, which is on file with the U.S. Securities and
      Exchange Commission. The forward-looking statements in this press
      release reflect Immersion&#8217;s beliefs and predictions as of the date of
      this release. Immersion disclaims any obligation to update these
      forward-looking statements as a result of financial, business, or any
      other developments occurring after the date of this release.
    </p>
    <p>
      Immersion and the Immersion logo are trademarks of Immersion Corporation
      in the U.S. and other countries.
    </p>
    <div style="margin-bottom: 10pt; width: 100%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <table style="font-size: 8pt; margin-bottom: 10.0px; width: 100%; font-family: Times New Roman" cellspacing="0">
      <tr>
        <td colspan="8" style="padding-left: 0.0px; text-align: center" valign="top">
          <b>Immersion Corporation</b>
        </td>
      </tr>
      <tr>
        <td colspan="8" style="padding-left: 0.0px; text-align: center" valign="top">
          <b>Condensed Consolidated Balance Sheets</b>
        </td>
      </tr>
      <tr>
        <td colspan="8" style="padding-left: 0.0px; text-align: center" valign="top">
          <b>(In thousands)</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2" style="padding-left: 0.0px; text-align: center" valign="top">
          December 31,
        </td>
        <td>

        </td>
        <td colspan="3" style="padding-left: 0.0px; text-align: center" valign="top">
          December 31,
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2" style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: center" valign="bottom">
          2007
        </td>
        <td>

        </td>
        <td colspan="3" style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: center" valign="bottom">
          2006
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2" style="padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: center" valign="top">
          (Unaudited)
        </td>
        <td>

        </td>
        <td colspan="3" style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: center" valign="bottom">
          (1)
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          ASSETS
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td colspan="2" style="padding-left: 10.0px; text-align: left" valign="top">
          Cash and cash equivalents
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          86,493
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          32,012
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="2" style="padding-left: 10.0px; text-align: left" valign="top">
          Short-term investments
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          51,619
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          -
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="2" style="padding-left: 10.0px; text-align: left" valign="top">
          Accounts receivable, net
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          5,494
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          5,153
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="2" style="padding-left: 10.0px; text-align: left" valign="top">
          Inventories, net
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          3,674
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          2,639
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="2" style="padding-left: 10.0px; text-align: left" valign="top">
          Deferred income taxes
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          3,351
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          -
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="2" style="padding-left: 10.0px; padding-bottom: 2.0px; text-align: left" valign="top">
          Prepaid expenses and other current assets
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          3,036
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          1,179
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Total current assets
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          153,667
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          40,983
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="2" style="padding-left: 10.0px; text-align: left" valign="top">
          Property and equipment, net
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          2,112
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          1,647
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="2" style="padding-left: 10.0px; text-align: left" valign="top">
          Deferred tax assets, net
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          4,031
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          -
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="2" style="padding-left: 10.0px; padding-bottom: 2.0px; text-align: left" valign="top">
          Intangibles and other assets, net
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          8,558
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          7,385
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="2" style="padding-left: 0.0px; padding-bottom: 4.0px; text-align: left" valign="top">
          TOTAL ASSETS
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-right: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-right: 0.0px; text-align: right" valign="bottom">
          168,368
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-right: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-right: 0.0px; text-align: right" valign="bottom">
          50,015
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="2" style="padding-left: 0.0px; text-align: left" valign="top">
          LIABILITIES
        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td colspan="2" style="padding-left: 10.0px; text-align: left" valign="top">
          Accounts payable
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          1,657
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          2,334
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="2" style="padding-left: 10.0px; text-align: left" valign="top">
          Accrued compensation
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          1,828
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          1,526
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="2" style="padding-left: 10.0px; text-align: left" valign="top">
          Income taxes payable
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          534
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          -
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="2" style="padding-left: 10.0px; text-align: left" valign="top">
          Other accrued liabilities
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          2,095
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          1,750
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="2" style="padding-left: 10.0px; padding-bottom: 2.0px; text-align: left" valign="top">
          Deferred revenue and customer advances
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          4,478
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          1,716
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Total current liabilities
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          10,592
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          7,326
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="2" style="padding-left: 10.0px; text-align: left" valign="top">
          Long-term debt
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          18,122
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="2" style="padding-left: 10.0px; text-align: left" valign="top">
          Long-term liabilities and deferred revenue
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          15,989
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          32,559
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="2" style="padding-left: 10.0px; padding-bottom: 2.0px; text-align: left" valign="top">
          Long-term customer advance from Microsoft
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          -
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          15,000
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Total liabilities
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          26,581
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          73,007
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="2" style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left" valign="top">
          STOCKHOLDERS&#8217; EQUITY (DEFICIT)
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          141,787
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          (22,992
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: left" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="2" style="padding-left: 0.0px; padding-bottom: 4.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            TOTAL LIABILITIES &amp; STOCKHOLDERS&#8217; EQUITY (DEFICIT)
          </p>
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-right: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-right: 0.0px; text-align: right" valign="bottom">
          168,368
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-right: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-right: 0.0px; text-align: right" valign="bottom">
          50,015
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="8" style="padding-left: 0.0px; text-align: left" valign="top">
          (1) Derived from Immersion&#8217;s annual audited consolidated financial
          statements.
        </td>
      </tr>
    </table>
    <div style="margin-bottom: 10pt; width: 100%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <table style="font-size: 8pt; margin-bottom: 10.0px; width: 100%; font-family: Times New Roman" cellspacing="0">
      <tr>
        <td colspan="18" style="padding-left: 0.0px; text-align: center" valign="top">
          <b>Immersion Corporation</b>
        </td>
      </tr>
      <tr>
        <td colspan="18" style="padding-left: 0.0px; text-align: center" valign="top">
          <b>Condensed Consolidated Statements of Operations</b>
        </td>
      </tr>
      <tr>
        <td colspan="18" style="padding-left: 0.0px; text-align: center" valign="top">
          <b>(In thousands, except per share amounts)</b>
        </td>
      </tr>
      <tr>
        <td colspan="18" style="padding-left: 0.0px; text-align: center" valign="top">
          <b>(Unaudited)</b>
        </td>
      </tr>
      <tr>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="7" style="padding-left: 0.0px; text-align: center" valign="top">
          Three Months
        </td>
        <td>

        </td>
        <td colspan="7" style="padding-left: 0.0px; text-align: center" valign="top">
          Years
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="7" style="padding-left: 0.0px; text-align: center" valign="top">
          Ended December 31,
        </td>
        <td>

        </td>
        <td colspan="7" style="padding-left: 0.0px; text-align: center" valign="top">
          Ended December 31,
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: center" valign="bottom">
          2007
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: center" valign="bottom">
          2006
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: center" valign="bottom">
          2007
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: center" valign="bottom">
          2006
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="2" style="padding-left: 0.0px; text-align: left" valign="top">
          Revenues:
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Royalty and license
          </p>
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          4,019
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          2,356
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          11,881
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          7,304
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Product sales
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          4,242
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          5,539
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          18,541
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          17,083
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Development contracts and other
          </p>
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          1,629
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          714
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          4,280
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          3,466
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 20.0px; padding-bottom: 2.0px; text-align: left" valign="top">
          Total revenues
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          9,890
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          8,609
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          34,702
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          27,853
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="2" style="padding-left: 0.0px; text-align: left" valign="top">
          Costs and expenses:
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Cost of product sales (exclusive of amortization of intangibles
            shown separately below)
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          2,275
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          2,056
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          8,808
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          7,193
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Sales and marketing
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          2,935
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          3,455
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          11,493
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          12,609
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Research and development
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          2,518
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          2,184
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          10,056
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          7,609
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          General and administrative
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          3,405
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          2,506
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          12,567
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          10,076
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Amortization of intangibles
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          263
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          313
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          1,002
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          969
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left" valign="top">
          Litigation conclusions and patent license
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          -
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          (300
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          (134,900
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          (1,650
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: left" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 20.0px; padding-bottom: 2.0px; text-align: left" valign="top">
          Total costs and expenses
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          11,396
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          10,214
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          (90,974
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          36,806
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="2" style="padding-left: 0.0px; text-align: left" valign="top">
          Operating income (loss)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          (1,506
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          (1,605
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          125,676
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          (8,953
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: left" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td colspan="2" style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left" valign="top">
          Interest and other income (expense), net
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          1,817
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          (364
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          4,830
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          (1,327
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: left" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="2" style="padding-left: 0.0px; text-align: left" valign="top">
          Income (loss) before provision for income taxes
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          311
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          (1,969
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          130,506
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: right" valign="bottom">
          (10,280
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; padding-right: 0.0px; text-align: left" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="2" style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left" valign="top">
          Benefit (provision) for income taxes
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          200
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          (13
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          (13,488
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          (144
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: left" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="2" style="padding-left: 0.0px; padding-bottom: 4.0px; text-align: left" valign="top">
          Net income (loss)
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-right: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-right: 0.0px; text-align: right" valign="bottom">
          511
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-right: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-right: 0.0px; text-align: right" valign="bottom">
          (1,982
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-right: 0.0px; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-right: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-right: 0.0px; text-align: right" valign="bottom">
          117,018
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-right: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-right: 0.0px; text-align: right" valign="bottom">
          (10,424
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-right: 0.0px; text-align: left" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="2" style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left" valign="top">
          Basic net income (loss) per share
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          0.02
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          (0.08
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          4.23
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          (0.42
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: left" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="2" style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Shares used in calculating basic net income (loss) per share
          </p>
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          30,253
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          24,662
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          27,662
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          24,556
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="2" style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left" valign="top">
          Fully diluted net income (loss) per share
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          0.02
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          (0.08
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          3.71
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          (0.42
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: left" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="2" style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Shares used in calculating fully diluted net income (loss) per
            share
          </p>
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          32,488
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          24,662
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          31,667
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-left: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-right: 0.0px; text-align: right" valign="bottom">
          24,556
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
    </table>
    <p>

    </p>
    <p>
      CONTACT:<br>Immersion Corporation<br>Stephen Ambler, +1-408-467-1900<br>invest@immersion.com
    </p>
  </body>
</html>
</TEXT>
</DOCUMENT>
</SUBMISSION>
