Nakamichi Speakers Update

Immersion Technologies Intl PLC
19 November 2007



Press Release


19 November 2007



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

                       Trading Update: Nakamichi Speakers


-           Significant upgrade to specification of speakers

-           Speakers to be launched as Nakamichi 'Dragon(R) ESL'

-           Stringent sound quality and performance tests passed

-           Commencement of discussions regarding new product lines



Immersion Technologies International plc, which specialises in product
development, design and manufacture of High Definition-Acoustic ('HD-A(R)')
technology, is pleased to confirm that:


(a)        Immersion's customer, Nakamichi Corporation Ltd ('Nakamichi') altered
the original specifications of the HD-A(R) speaker from a mainstream product to
its flagship product. This resulted in significant changes to the electronic
design and aesthetic finish of the product. Due to the upgrade, additional
lengthy and stringent testing programmes were conducted. Volume production of
the new HD-A(R) speaker is proceeding at the Company's manufacturing facility in
Nanjing, China, and the speakers will be available for shipping in early
December 2007.


(b)        As a result, Nakamichi are re-marketing HD-A(R) speakers as the '
Dragon(R) ESL'. The Dragon(R) trade mark is generally recognised by the audio
industry as the most prestigious of Nakamichi's products.  Nakamichi's decision
to name the speakers in this way is a mark of the high esteem in which they hold
their overall quality and appeal. The Dragon(R) ESL is a Hybrid speaker that
uses the award winning HD-A(R)  technologies.



(c)        A series of listening tests, known in the industry as 'Golden Ear'
tests, were also personally conducted at Immersion's manufacturing facility in
China by senior executives and audio engineers from Nakamichi. These listening
tests involved playing a broad range of music and other sounds and analyzing in
minute detail the quality and performance of the sound waves.



(d)        In addition, qualitative and quantitative analysis of speaker
performance, transportation and storage at a range of temperatures, atmospheric
pressure and humidity were independently conducted. Immersion's speakers were
also subjected to tests of durability and functionality under a range of
conditions such as vibration, stress, shock and electrical power surge.



(e)        The speakers passed all of these tests.  The speakers were also
compared against several other leading brands and, in the opinion of Nakamichi's
expert sound engineers,  the speakers are superior.



(f)         Immersion and Nakamichi have also commenced discussions regarding
additional product lines.



(g)        To date, Immersion has received US$167,000 from Nakamichi, being 50%
of the first order.  As set out in the original contract with Nakamichi,
invoicing for the product will take place on a monthly basis where 50% is
received on order and 50% is received on delivery.



Craig Evans, Chief Executive of Immersion, said:



'It has taken longer than we expected to get to this stage, but the reasons are
very positive.  When Nakamichi recognised the potential of our technology to
produce such high sound quality, they decided to change the specification of the
product and elevate it in their overall programme.  This required significant
collaboration, modification and stringent testing.



'The fact that Nakamichi have conducted such demanding tests in person shows how
seriously they take this product. We are naturally delighted to have passed the
tests, completed a project of this complexity and produce a product of this
calibre.



'The status which these speakers have now attained will also be of enormous
value to Immersion when marketing to other corporations, as well as raising
awareness of the HD-A(R) Technology amongst audio experts and other consumers.'





Enquiries:


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

Pelham Public Relations
Archie Berens                                               [phone]

St. Helens Capital - Nominated Broker
Sebastian Wykeham                                           [phone]

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



NOTES FOR EDITORS



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 mark High Definition - Acoustics HD-A(R) , 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 on Nakamichi Corporation



Nakamichi Corporation is one of the world's premier manufacturers of high
quality, high performance audio/video and multimedia equipment.  Long renowned
for the sophistication of its home audio and mobile sound systems, Nakamichi
continues to introduce leading edge products that are widely available
throughout the world.



The Nakamichi name represents a long, proud tradition of quality and innovation
in acoustics and electronics.  Today's Nakamichi had its origin in the founding
of a small research institute in 1948.  Nakamichi Research, as it was then
called, got its start in basic research and development in electromagnetism,
magnetic recording, acoustics and communications.




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