EXHIBIT 99.1

Contacts:

Victor Viegas/Bridget McQueen
Immersion Corporation
(408) 467-1900
Invest@immersion.com

             MICROSOFT LICENSES IMMERSION'S HAPTIC PATENT PORTFOLIO

AGREEMENTS SETTLE LEGAL DIFFERENCES; PROVIDE MICROSOFT BROAD LICENSING RIGHTS TO
SENSE OF TOUCH PATENTS ON MULTIPLE PLATFORMS

San Jose, California (July 28, 2003) - Immersion Corp. (NASDAQ: IMMR) today
announced a series of agreements with Microsoft Corporation (NASDAQ: MSFT), that
grant Microsoft licensing rights for Immersion's patent portfolio, which is
primarily directed to haptic technologies (the sense of touch). The agreements
consist of a $26 million payment from Microsoft for licensing rights and an
equity investment, as well as a $9 million convertible debenture from Immersion
with 48 months draw down rights.

In addition to the licensing rights and equity, the agreements resolve ongoing
litigation between the two companies based on Immersion's lawsuit against
Microsoft filed in February 2002. Immersion's lawsuit against Sony Computer
Entertainment of America, Inc. and Sony Computer Entertainment Inc. on similar
grounds of patent infringement, is still pending.

Under the license, Microsoft may use Immersion's patented haptic technologies in
its operating systems, hand held devices, computing platforms and other current
and future products and services.

"As human interaction with digital technologies becomes more complex, the sense
of touch becomes an even more important element in a broad range of products,"
said Barry Spector, Director of Business Development. "Microsoft recognizes the
importance of haptic technology to consumers, the value of Immersion's patent
portfolio in this space, as well as Immersion's role as a leading supplier of
haptics."

"Immersion is delighted with today's agreements. Microsoft is the world's leader
in software, services and Internet technologies. They are an ideal partner to
help demonstrate the value and benefits of haptic technologies to consumer
markets such as personal computers, games, and handheld devices," said Victor
Viegas, President and CEO of Immersion.



ABOUT IMMERSION (WWW.IMMERSION.COM)

Founded in 1993, Immersion Corp. is a recognized leader in developing, licensing
and marketing haptic technology and products. Bringing value to markets where
user/product interaction needs to be made more compelling, safer or productive,
Immersion helps its partners develop and increase competitive advantage and
broaden market reach by making the use of touch sense feedback as critical a
user experience as sight and sound. Immersion's technology is deployed across
personal computing, entertainment, medical training, automotive and
three-dimensional simulation markets. Immersion and its wholly owned
subsidiaries hold over 195 issued patents worldwide.

Statements made in this media alert other than statements of historical fact are
forward-looking statements, including those that reflect management's current
forecast of certain aspects of Immersion's future. Forward-looking statements
made in this press release are based on current information, which we have
assessed but which by its nature is dynamic and subject to rapid and even abrupt
changes. Forward-looking statements include statements regarding Immersion s
strategic development and position within the haptic economy. Immersion's actual
results might differ materially from those stated or implied by such
forward-looking statements due to risks and uncertainties associated with
Immersion's business which include, but are not limited to, delay in or failure
to achieve commercial demand for Immersion's touch-enabled technology products
or a delay in or failure to achieve the acceptance of touch sense feedback as a
critical user experience.

Risks and uncertainties related to Immersion's business in addition to those
described above are further outlined in Immersion's Annual Report on Form 10-K
and its Quarterly Reports on Form 10-Q. These reports are filed with the
Securities and Exchange Commission. These factors may not constitute all of the
factors that could cause actual results to differ materially from those
discussed in any forward-looking statement. Immersion is not obligated to revise
or update any forward-looking statements in order to reflect events or
circumstances that may arise after the date of this medial alert.

Immersion is a trademark of Immersion Corporation. All other trademarks are the
property of their respective owners.