JEFFERIES 2016 TECHNOLOGY CONFERENCE

May 2016 Nasdaq: IMMR JEFFERIES 2016 TECHNOLOGY CONFERENCE Victor Viegas, CEO

Forward-Looking Statements All statements, other than the statements of historical fact, are statements that may be deemed forward-looking statements, including any statements of the plans, strategies, and objectives of management for future operations, statements regarding projected future financial results, market size and any other projections, and statements of belief or assumptions underlying any of the foregoing. Immersion s actual results may differ materially from those stated or implied by such forward-looking statements due to risks and uncertainties associated with its business, which include but are not limited to negative trends in the macroeconomic climate; delay in or failure to achieve commercial demand for Immersion s or its licensees intellectual property, products or services; delay in or failure to achieve the acceptance of haptics as a critical user experience; the commercial success of applications or devices into which Immersion's intellectual property or technology is licensed; potentially lengthy sales cycles and design processes; adverse outcomes in any intellectual property-related litigation and the costs related thereto; unanticipated difficulties and challenges encountered in development efforts; potential restructuring charges; failure to retain key personnel; potential and actual claims and proceedings relating to such matters, including stockholder litigation; and other factors. Many of these risks and uncertainties are beyond Immersion s control. For a more detailed discussion of these factors, and other factors that could cause actual results to vary materially, interested parties should review the risk factors listed in Immersion s most recent Form 10-K and Form 10-Q, which are on file with the U.S. Securities and Exchange Commission. The forward-looking statements in this presentation reflect Immersion s beliefs and predictions as of the date of this presentation. 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 presentation. In addition, the use of the word partner or partnership does not imply a legal partnership between Immersion and any other company. 2

Non-GAAP Measures This presentation includes information on Non-GAAP Net Income. This measure is not based on any standardized methodology prescribed by U.S. generally accepted accounting principles ( GAAP ) and is not necessarily comparable to similar measures presented by other companies. Non-GAAP Net Income is defined as net income after removing the effect of stock-based compensation expense, adjusted to reflect an anticipated long-term effective tax rate of 19% due to our international tax planning. This measure should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP, and because this amount is not determined in accordance with GAAP, it should not be used exclusively in evaluating Immersion s business and operations. Immersion believes that this non-gaap information is useful as an additional means for investors to evaluate Immersion s operating performance, when reviewed in conjunction with Immersion s GAAP financial statements. Management also reviews this information as an additional means for measuring the company s performance. Immersion compensates for these limitations by realizing that these amounts are not determined in accordance with GAAP and therefore should not be used exclusively in evaluating its business and operations. Additionally, please note that during this presentation, we may discuss historical non-gaap financial measures. For each non-gaap financial measure discussed, a presentation of the most directly comparable GAAP financial measure and a reconciliation of the differences between the non-gaap financial measure discussed and the most directly comparable GAAP financial measure is available in the Investor Relations section of Immersion s website at www.immersion.com. 3

We are Immersion Small, Agile Licensing Company Established in Large & Growing Markets World-class Customer Base Strong Software Solutions & IP Solid Financial Performance 130+ employees World class ecosystem of partners Scalable business model Mobile, Gaming, Medical, Auto, Other IMMR technology already in 3B devices Meizu, LG, Huawei, Acer, Sony, Fujitsu, Volkswagen, Logitech, etc. Largest haptic IP portfolio Proven ability to defend IP Software solutions for mobile OEMs and content developers $61M cash, no debt High-margin business

Haptics Technology Haptics the science of touch brings value to digital interactions Confirmation: Provides confidence and improves accuracy and speed Realism: Brings enhanced, real-world feel to digital audio and video content Rich Communications: Allows physically separated users to share touch experiences through their mobile devices DISPLAYS Displays are for sight SPEAKERS Speakers are for sound HAPTICS Haptics is for touch 5

Large and Rapidly Growing Markets Mobility Smart Phones and Tablets Multimodal UX Virtual Keyboards Personalized Alerts Rich Communications Gaming / VR Controllers Handheld Arcade Casino Content Mobile Advertising Mobile Games Short Video Chat Wearables Smart Watches Portable Health Tracker Smart Armbands Smart Shoes Medical Robotic surgery Medical devices Medical simulators Automotive Infotainment Navigation Climate control Drive-by-wire 6

High Margin Licensing Model Royalties & License Split (Q1 2016)* Revenue Split by Vertical Market (Q1 2016) 37% 32% 28% 63% 7% 33% Variable Royalties Fixed License Fees Mobile Gaming Auto Medical *99% of total revenue is royalty & license; balance is services 7

World Class Customers & Partners MOBILITY & WEARABLES GAMING MEDIA & ADS ECOSYSTEM PARTNERS MEDICAL AUTOMOTIVE MOBILE GAMES 8

World s Largest Haptics Patent Portfolio Over 2,200 worldwide granted & pending patents 1200 1000 800 600 400 200 0 Number of Granted Patents (Active) 957 824 606 477 392 279 140 206 3 8 22 50 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 23 years of haptics innovation IP licensing Software solutions Foundational haptics IP New user experience contexts System-level solutions 9 Confidential

Patent Licensing Customers create their own products with licensed Immersion IP GAMING MEDICAL AUTOMOTIVE MOBILITY Rumble tactile and force feedback technology Licenses to console and peripheral makers Vibrotactile and kinesthetic force feedback Medical simulation and robotic surgery Touch screens, touch pads and panels Rotary knobs and scroll wheels Basic haptic effects via Android OS Advanced haptic experiences 10

Proven Ability to Assert and Monetize IP History of successfully asserting and monetizing IP Immersion has successfully asserted and monetized IP with Sony, Microsoft, Motorola/Google, HTC, etc. Recent actions to protect our business (2016) January - won arbitration over Sony Playstation4 royalties in Japan Samsung license expired in 2015; still shipping our technology Arbitration demand filed March 4, 2016 against Samsung. Multiple actions in ITC as well as district court filed against Apple iphone 6/6s, Watch, and Mac ibook infringing Immersion haptics IP 11

Software Licensing and Solutions TouchSense Software Development Kits Video, Ads & Game SDKs and Licenses Encoding Tools & Services Reference Designs & Design Guidelines Production Design & Services IMMERSION TouchSense Haptic Enabling Kits for OEMs TS Software and Licenses Reference Designs & Design Guides Design & UX Services Hardware & Integration Support Content & App Developers Game developers & publishers Ad agencies & networks; app publishers Video producers Social networks Device Manufacturers Mobile & tablet OEMs Laptop & PC makers Wearable OEMs Game console & controller OEMs 12

Mobile Haptics: Creation to Playback HAPTIC CREATION Producer/Creator - post production DISTRIBUTION Content streams sit in accessible storage location HAPTIC PLAYBACK Haptic track playback on consumer device A/V Content A/V Content Haptic File *.hapt Encode Haptic File *.hapt Decode HAPTIC TRACK CREATION Creation of haptic track via video and audio tools from Immersion Authoring tools compatible with industry standard audio and video editing environments Packaged for distribution via existing terrestrial and cloud based video distribution models SDK PLAYBACK On-device player decodes haptic track and sends to haptic driver Synchronized tactile effects playback with audio/visual content on device in app 13

Haptic Ads Success in the Market Immersion launches haptic ads with Opera Mediaworks By approaching mobile devices as potential multi-sensory experiences beyond just sight and sound, marketers can take advantage of mobile s inherent differences and capitalize on them. MediaPost To promote the new 308 Gti, the French carmaker has launched a mobile ad campaign that uses haptic feedback technology to simulate the vibrations of the car s engine - Digital Trends Physical experiences make a creative use case for brands. This is the year that haptics really start to break through. We re taking advantage of every piece of technology within the phone. - AdWeek LeEco, China s premier video site launches Haptic 4D channel featuring trailers enhanced with tactile effects Trailers viewed almost 500,000 times in the first three weeks after their launch LeEco s Haptic 4D channel now ranks 5th among 30 channels Mobile Ads with Immersion s TouchSense Technology Videos with tactile effects provide an immersive experience with audio, video and touch simultaneously, creating a new way to market the entertainment value of a movie. We believe that haptics are a competitive advantage for our App. YuChao, Chief Editor at LeEco 14

Total Devices (Millions) Haptic Games Expanding Ecosystem Devices Using Immersion Game SDK 300 250 200 150 Google Games You Can Feel App Category Google has revealed a new category for special haptic feedback-friendly games on Google Play This section is called Games you can feel, and it s live now and it has Google working in direct collaboration with the folks at haptic technology group Immersion What better way to test out the haptic feedback on your phone or in your phone, rather than this? 100 50 0 Touch feedback like this can work really well on mobile Rumble can replace audio cues that gamers aren t hearing. Venture Beat MOBILE GAMES Dec-15 Jun-15 Sep-14 Dec-13 Mar-13 More than 1,500 popular Android apps have driven >245 million devices with Immersion s SDK 15

Haptic Social Media Growing Value Social haptics, like body language, is a profoundly human and meaningful behavior Haptics expand users ability to express themselves in social messaging Wearables provide an private tactile channel for meaningful and emotional social interaction 16

Financial Highlights 17

Long-Term Target Financial Model 2013 2014 2015 2016 Long-Term Revenue $47.5M $52.9M $63.4M $55M - $65M 100% Gross Margin 99% 99% 99% 99% 99% Opex 91% 88% 92% 105-131% 49-54% Net Income 85%** 8% 5% (24%) (3%) 36-41% *** Non-GAAP Net Income * 16% 20% 14% (14%) - 5% 41-46% * Defined as net income after adjusting for 19% effective tax rate and removing the effect of stock-based compensation expense. ** Reflects partial release of deferred tax asset valuation allowance. *** Assumes effective tax rate of 19% as a result of long-term international tax planning. 18

Income Statement Most Recent Quarter ($ in thousands) Q1 16 Q1 15 FY 15 FY 14 Revenues $13,623 $16,287 $63,393 $52,937 Cost of Revenues 23 115 440 460 Gross Margin 13,600 16,172 62,953 52,477 % of Revenues 99% 99% 99% 99% Sales and Marketing 3,803 4,210 14,674 10,896 Research and Development 4,312 3,727 14,785 11,793 General and Administrative 10,090 8,293 28,755 23,754 Amortization of Intangibles 3 12 20 67 Operating Income (Loss) ($4,608) ($70) $4,719 $5,967 Interest and Other 212 (25) (270) 352 Income Taxes (Provision) / Benefit 1,701 36 (1,591) (2,196) Net Income (Loss) ($2,695) ($59) $2,858 $4,123 % of Revenues (20%) (0%) 5% 8% Non-GAAP Net Income ($1,227) $1,663 $9,074 $10,413 % of Revenues (9%) 10% 14% 20% 19

Income Statement Year to Date ($ in thousands) FY 15 FY 14 FY 13 Revenues $63,393 $52,937 $47,470 Cost of Revenues 440 460 462 Gross Margin 62,953 52,477 47,008 % of Revenues 99% 99% 99% Sales and Marketing 14,674 10,896 9,338 Research and Development 14,785 11,793 10,883 General and Administrative 28,755 23,754 23,104 Amortization of Intangibles 20 67 79 Operating Income (Loss) $4,719 $5,967 $3,604 Interest and Other (270) 352 68 Income Taxes (Provision) (1,591) (2,196) 36,483 Net Income (Loss) $2,858 $4,123 $40,155 % of Revenues 5% 8% 85% Non-GAAP Net Income $9,074 $10,413 $7,619 % of Revenues 14% 20% 16% 20

Balance Sheet ($ in thousands) Mar 31, 2016 Dec 31, 2015 Cash and Short Term Investments 60,806 64,931 Deferred Tax Assets 26,262 24,633 PP&E 4,412 4,589 Other Assets 13,968 11,262 Total Assets $105,448 $105,415 Deferred Revenues (short & long term) 8,064 9,212 Other Liabilities 9,366 9,588 Total Liabilities $17,430 $18,800 Stockholders Equity $88,018 $86,615 Total Liabilities & Equity $105,448 $105,415 21