Trading Update

Immersion Technologies Intl PLC
14 June 2007



Press Release


14 June 2007


        Immersion Technologies International plc ('Immersion' or 'ITI')

               Trading Update: Manufacturing Commences at Nanjing

         Immersion Sub-Woofer Powering Two New Alpine In-Car Systems


Immersion Technologies International plc, which specialises in the design,
manufacture and supply of high definition acoustic 'HD-ATM' technology, is
pleased to make the following trading update following its admission to AIM on
12th April, 2007.


Immersion has made considerable progress in terms of its stated corporate
strategy since admission to AIM. Immersion is pleased to announce that
manufacturing has commenced at its plant (on time and in line with budget) in
the Nanjing Jiangning Economic and Technological Development Zone, near Nanjing,
the capital of the Jiangsu province.


The first product being manufactured is pursuant to Immersion's existing
contract with Nakamichi Corporation Ltd for the manufacture and supply of the
Phoenix product. The Phoenix is a Hybrid speaker that uses the award winning CCL
and ESL technologies in the one product. Payment in line with the contract has
been received from Nakamichi for this order.


In addition, Immersion is pleased to announce that as part of its existing
contracts with Alpine Electronics of UK Limited, ('Alpine'), the award-winning
Immersion sub-woofer will also power two new Alpine in-car systems for two
prestigious European automobile manufacturers.


Craig Evans, Chief Executive of Immersion said:


'I am delighted to announce that production has now commenced at the Nanjing
facility, the first step in the evolution of Immersion's corporate plan. The
ability to design, develop, manufacture and supply HD-ATM products for existing
consumer electronic companies is fundamental in ensuring that the quality of
Immersion's technology reaches a wider consumer audience and maximises
shareholder value. The licensing arrangement with Alpine demonstrates that
quality of sound is becoming increasingly important in the automotive market and
we expect it to continue to deliver significant growth.  It should also be noted
that the next step for the company is to commence manufacturing and direct
supply to the automotive industry.'


Mr Dave Sheen, Senior Manager of Alpine UK, commented:


'The Immersion subwoofer technology is the market leader; its scalability and
sound quality thoroughly justify its selection for our systems for our OEM
customers. The automotive market is increasingly demanding systems which deliver
audiophile quality sound and we therefore look forward to utilising Immersion's
award winning technology in future contracts.'




Enquiries:

Immersion Technologies International plc
Craig Evans / Blair Snowball                                [phone]

Pelham Public Relations
Archie Berens / Hugh Barker                                 [phone]

St. Helens Capital - Nominated Broker
Ruari McGirr                                                [phone]

Nabarro Wells - Nominated Adviser
Hugh Oram / Anthony Rowland                                 [phone]





Background Information on Immersion

Immersion is an audio technology company with patented and patent pending
technologies relating to both its high performance electrostatic loudspeakers ('
'ESL'') and award-winning conventional cone loudspeakers (''CCL'').

The Immersion Technology has been researched and developed for over 10 years and
has been designed with the intention to provide the highest possible audio
reproduction characteristics and set a new standard to benchmark these
characteristics.  Immersion has achieved what the Immersion Directors consider
to be a new level of high definition acoustics and has made an application to
register the trade marks, HD-ATM or High Definition - AcousticsTM, to reflect
this standard internationally.

The Immersion Technology reduces audio distortion to extremely low levels thus
enhancing clarity without compromising volume in both ESL and CCL loudspeakers.

Immersion has the ability to manufacture ESL devices in thin, small
aesthetically pleasing designs.  In addition, the technology is proven to be
scalable and can be incorporated into speakers of almost any size or shape. The
Immersion Directors believe that these factors will provide a significant
marketing advantage in the competitive market for audio reproduction devices.

Background Information on Immersion's Nanjing Production Facility

The Nanjing manufacturing facility has excellent transport links, a reliable
workforce, access to first and second tier suppliers and relatively low
overheads. The plant is approx 4000 sq.m and will have capacity to produce all
of the Immersion Group's current anticipated volumes and will initially employ
approximately 35 staff. Immersion has also been offered the opportunity by the
local authority to expand this facility to three times its current size in the
future. The plant will be officially opened as part of the Zones official 15
year birthday celebrations on the 18th June 2007.


                      This information is provided by RNS
            The company news service from the London Stock Exchange