MONTREAL, CANADA AND SAN JOSE, CALIFORNIA, Mar 30, 2010 (MARKETWIRE via COMTEX) –CAE Healthcare, a division of CAE /quotes/comstock/13*!cae/quotes/nls/cae (CAE 9.90, +0.10, +1.02%) /quotes/comstock/11t!cae (CA:CAE 10.08, +0.11, +1.10%) , andImmersion /quotes/comstock/15*!immr/quotes/nls/immr (IMMR 5.00, +0.51, +11.36%) , a leading innovator of haptic (touchfeedback) technology, today announced that CAE Healthcare hasacquired part of Immersion’s medical simulation business unit. Threeproduct lines are part of the acquisition and will form the coreofferings of CAE Healthcare’s newly established surgical simulationdivision.

The acquisition of Immersion’s assets supports CAE Healthcare’sstrategy to provide a full range of best-in-class medical educationand simulation solutions across a worldwide market. The agreementincludes Immersion’s Endoscopy AccuTouch(TM), Laparoscopy VirtualReality (VR), and Endovascular CathLab VR simulators. These surgicalsimulators allow surgeons to practice procedures and acquire skillsto perform minimally invasive surgeries, including bronchoscopies,upper and lower gastrointestinal endoscopies and cardiac valvereplacements. More than 500 of these systems have been installedworldwide. In addition, Immersion will grant CAE Healthcare anon-exclusive worldwide license for the TouchSense(TM) haptictechnology in medical training applications.

“We are committed to delivering the best training solutions toimprove patient safety, and the acquisition of Immersion’s surgicaltraining systems will accelerate our entry in the growing surgicalsimulation market,” said Guillaume Herve, President of CAEHealthcare. “We welcome the Immersion team, and look forward toproviding our new customers with continuous service support. Bycombining the expertise of the Immersion team with CAE’s more thansix decades of modelling, simulation and training experience, weintend to offer a complete solution for surgical simulation.”

Immersion’s medical line of business designs, manufactures, andmarkets computer-based virtual reality simulation training systemswith realistic touch feedback that allows clinicians and students topractice and improve minimally invasive surgical skills in anenvironment that poses no risk to patients. The advanced haptics arefundamental in providing an unequalled learning experience as theyprovide simulation on how a procedure or exercise actually feels. Themedical business unit includes more than 30 employees in NorthAmerica, a network of surgical subject matter experts, as well as 14distributors and sales offices in Europe, Asia Pacific and SouthAmerica.

“We are proud of the pioneering work that we have accomplished in thesurgical simulation market,” said Victor Viegas, Interim CEO ofImmersion. “We believe that CAE Healthcare provides a greatopportunity for our medical employees, customers, and distributors totake our simulation business forward. At Immersion, we will focus ourcore strategy on what we do best – building reference designs andlicensing TouchSense haptics solutions to all markets, includinghealthcare. We welcome CAE Healthcare as a new customer as wecontinue to capitalize on the medical market through our licensingmodel.”

About Immersion

Haptic (touch) technology is the future of user experience in digitaldevices. Founded in 1993, Immersion /quotes/comstock/15*!immr/quotes/nls/immr (IMMR 5.00, +0.51, +11.36%) harnesses humantouch to create user experiences that deliver a more compelling senseof the digital world. Using one of Immersion’s adaptable highfidelity haptic systems, partners can achieve a competitive advantageand greater revenue opportunities with products that are moreintuitive, satisfying, efficient, and safe. With Immersiontechnology, world-class companies can deliver improved userexperiences in products such as widely popular video games, leadingvideo console gaming systems, advanced automotive driver controls,and award-winning mobile phones. With over 800 issued or pendingpatents in the U.S. and other countries, Immersion is the leadinginnovator in touch-enabled user experiences that bring the digitaluniverse to life. (immersion.com)

About CAE Healthcare

CAE Healthcare is a wholly-owned subsidiary of CAE /quotes/comstock/13*!cae/quotes/nls/cae (CAE 9.90, +0.10, +1.02%) /quotes/comstock/11t!cae (CA:CAE 10.08, +0.11, +1.10%) , a world leader in providing simulation and modellingtechnologies and integrated training solutions for the civil aviationindustry and defence forces around the globe. CAE Healthcare isapplying CAE’s training, simulation and modelling know-how fromaviation to bring best practices to healthcare. It is developingcutting-edge learning tools and innovative simulation solutions forhealthcare education with the objective of offering healthcareprofessionals the opportunity to develop practical experience onmultiple simulation platforms before testing their skills onpatients. The ultimate goal is to improve clinical competence andexpertise and enhance the quality and safety of patient care and theefficiency of healthcare systems. cae.com/healthcare

CAE is a world leader in providing simulation and modellingtechnologies and integrated training solutions for the civil aviationindustry and defence forces around the globe. With annual revenuesexceeding C$1.6 billion, CAE employs more than 6,500 people at morethan 90 sites and training locations in 20 countries. We have thelargest installed base of civil and military full-flight simulatorsand training devices. Through our global network of 29 civil aviationand military training centres, we train more than 75,000 crewmembersyearly. We also offer modelling and simulation software to variousmarket segments and, through CAE’s professional services division, weassist customers with a wide range of simulation-based needs.cae.com

Immersion Forward-looking Statements

This press release contains “forward-looking statements” that involverisks and uncertainties, as well as assumptions that, if they nevermaterialize or prove incorrect, could cause the results of ImmersionCorporation and its consolidated subsidiaries to differ materiallyfrom those expressed or implied by such forward-looking statements.All statements, other than the statements of historical fact, arestatements that may be deemed forward-looking statements, including,but not limited to, statements related to Immersion’s future businessmodel.

Immersion’s actual results might differ materially from those statedor implied by such forward-looking statements due to risks anduncertainties associated with Immersion’s business, which include,but are not limited to, the effects of the current macroeconomicclimate; delay in or failure to achieve commercial demand forImmersion’s products or technologies; the fact that products intowhich our technology is designed may never be developed intocommercial products; potentially lengthy sales cycles in seekingdesign wins; lengthy product development cycles; unanticipateddifficulties and challenges encountered in product developmentefforts; the fact that the products into which Immersion’s technologyis designed may never achieve commercial acceptance; the reliance ofthird parties to sell products incorporating Immersion’stechnologies, and those third parties may not be able to achievesignificant sales of the products; the potential for future IPlitigation and the significant costs associated with any litigation;Immersion’s ability to attract and retain key personnel; and otherfactors. Many of these risks and uncertainties are beyond the controlof Immersion.

For a more detailed discussion of these factors, and other factorsthat could cause actual results to vary materially, interestedparties should review the risk factors listed in Immersion’s Form10-K, which is on file with the U.S. Securities and ExchangeCommission. The forward-looking statements in this press releasereflect Immersion’s beliefs and predictions as of the date of thisrelease. Immersion disclaims any obligation to update theseforward-looking statements as a result of financial, business, or anyother developments occurring after the date of this release.

Contacts:CAE contacts:Nathalie Bourque, Vice President,Public Affairs and Global Communications514-734-5788nathalie.bourque@cae.comInvestor relations:Andrew Arnovitz, Vice President,Investor Relations and Strategy514-734-5760andrew.arnovitz@cae.comImmersion Investor Contact:The Blueshirt GroupAlex Wellins1-415-217-5861alex@blueshirtgroup.com

SOURCE: CAE Inc. and Immersion

mailto:nathalie.bourque@cae.commailto:andrew.arnovitz@cae.commailto:alex@blueshirtgroup.com

Copyright 2010 Marketwire, Inc., All rights reserved.