Non-Reliance on Previously Issued Financial Statements

NOTIFICATION OF LATE FILING

Immersion Corporation (“ Immersion ”) is unable to timely file its Quarterly Report on Form 10-Q for the quarter ended June 30, 2009 (the “ Form 10-Q ”) by the prescribed due date due to the fact that the previously announced Audit Committee internal investigation has not yet been completed, which has delayed the completion of the financial statements for the second quarter of fiscal year 2009 and related disclosures.

The Form 10-Q will not be filed on or before the fifth calendar day following the prescribed due date. Although Immersion cannot at this time estimate when it will be in a position to file its Form 10-Q, it is diligently pursuing these matters and intends to make the filing as soon as reasonably practicable after the conclusion of the investigation and analysis.

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Item 4.02. Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review.

On August 10, 2009, the Audit Committee of the Board of Directors of Immersion Corporation (“Immersion”), after consultation with management concluded that its previously issued consolidated financial statements as of and for the year ended December 31, 2008 and auditor’s report thereon, and previously issued unaudited financial statements as of and for the periods ended March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008 and March 31, 2008, should no longer be relied upon because of one or more errors in such financial statements.

This determination was based on the ongoing previously announced investigation, undertaken by the Audit Committee of the Board of Directors, of certain revenue transactions in Immersion’s Medical line of business for which accounting errors have been identified. Immersion is currently neither in a position to fully quantify the restatement adjustments nor in a position to determine the magnitude of revenue and accounts receivable overstatements during the above periods; however, the correction of these errors would affect the amount and timing of revenue recognized for the respective periods. The resulting changes will require restatement of Immersion’s financial statements for such periods. While Immersion will not be able to evaluate the full impact of the aforementioned matters until the investigation and analysis are completed, Immersion does not currently anticipate any changes to its cash flows from operations for these periods or the results of its Touch line or other historic lines of business. Similarly, related press releases, annual report and stockholder communications describing Immersion’s financial statements for these periods should no longer be relied upon.

Immersion has also discussed this matter with its independent registered public account Deloitte & Touche LLP.

Although Immersion cannot at this time estimate when it will be in a position to file its restated financial statements and its Second Quarter 2009 Form 10-Q, it is diligently pursuing these matters and intends to make the filing as soon as reasonably practicable after the conclusion of the investigation and analysis.

As a result of these matters, Immersion is also in the process of reassessing the effectiveness of its internal control over financial reporting.