MicroTouch Specialty Products Group to Capitalize On Growing Market for   Low- 
                        Cost Digital Matrix Touchscreens                        
                       (Business Wire; 01/06/99)                       

METHUEN, MASS. (Jan. 6) BUSINESS WIRE -Jan. 6, 1999--MicroTouch Systems, Inc. 
(NASDAQ:MTSI), the world leader in touchscreen solutions, today announced it is 
vigorously pursuing a growing market for low-cost digital matrix touchscreens.

MicroTouch said its Specialty Products Group (SPG) in Austin, Texas will 
produce custom-designed digital matrix touchscreens in high volume for use in a 
variety of OEM products that traditionally use membrane switches, keypads, and 
buttons. The digital matrix touchscreen product line is part of the company's 
TouchTek family of resistive touchscreen products, and is marketed under the 
TouchTekDM brand name.

"We're taking advantage of an evolving market for low-cost man-machine 
interfaces," said Michael Woolstrum, general manager of MicroTouch SPG. "As 
LCDs (liquid crystal displays) have become smaller and less expensive, more 
OEMs are integrating digital matrix touchscreens with LCDs because they provide 
far greater flexibility, ease of operation, reliability, and value than 
membrane switches."

Digital matrix touchscreens are composed of an outer layer, or topsheet, made 
of polyester on an inner layer of glass or plastic. The two layers are coated 
with a thin, clear conductive material and separated by tiny spacer dots. The 
layers are etched to create a grid, or matrix, of rows and columns, each with a 
voltage connection. When the layers are pressed together, current flows through 
the row and column where the touch occurs.

Digital matrix touchscreens are more flexible than membrane switches and 
buttons because they are software-driven, so functions can be created, 
modified, upgraded, or expanded easily. In contrast, a membrane switch would 
require a change in hardware to redefine button layout or functionality. 
Digital matrix touchscreens can also be used in hybrid applications where 
buttons defined by graphics can be printed around the perimeter of the 
touchscreen, similar to a membrane switch, with a transparent window over the 
LCD for customizable functions.

MicroTouch SPG has begun delivering TouchTekDM in production quantities to 
several OEM customers whose products range from home automation control systems 
and household appliances to industrial and medical test and measurement 
equipment.  SmartLinc Home Automation

One such MicroTouch customer is SmartLinc, Inc., of Irvine, Calif. 
(www.smartlinc.com). This company 's award-winning TouchLinc home automation 
control system is centered on a programmable digital matrix touchscreen panel 
that completely controls virtually every major appliance in the home, including 
lights, appliances, HVAC, entertainment systems, drapes, security systems, and 
lawn sprinklers.

SmartLinc's goal is to enable consumers to get rid of "wall-warts" -- home 
security keypads, light dimmers, thermostats, and single-function switches -- 
and use one simple touchscreen to control everything.

Key considerations in the design of TouchLinc included keeping it priced low 
enough to be within reach of average homeowners, and ensuring it is durable 
enough to withstand regular usage. The TouchTekDM digital matrix touchscreen 
used in TouchLinc provides the right combination of low price, quality, and 
easy-to-use interface.

With TouchLinc, the user can see the various functions on the screen in words. 
There are 16 different user-defined TouchLinc menu screens, and each can have 
up to 15 device or sub-menu selections. As a result, TouchLinc is a 
customizable, flexible, intuitive way to manage devices and appliances. Instead 
of using different keypads and buttons for each device -- one for the lawn 
sprinklers, one for the thermostat, and one for the home security system -- 
TouchLinc provides the homeowner with one centralized and simplified 
touchscreen interface at a price nearly 10 times less than some competitive 

"As more OEMs transition their products from passive devices to intelligent, 
processor-driven systems, the opportunities for integrating a low-cost 
touchscreen as the user interface will grow exponentially," said Woolstrum. 
"The number of ways in which digital matrix touchscreens can be applied is 
virtually unlimited. Our early experience and success in this evolving market, 
along with our leadership in the touchscreen industry, have prepared us to meet 
the demand on a global scale."

Among the services and options offered by MicroTouch SPG are: custom 
prototyping; custom graphics; selection of topsheet finishes for best optics; 
EMI shielding and ruggedization; and all-plastic versions.

More details and information about MicroTouch SPG products and services can be 
obtained by calling 1-800-MICROTOUCH or (512) 832-8292.  About MicroTouch

MicroTouch Systems, Inc. is the world's leading provider of computer touch-
input solutions, offering an array of innovative products based on capacitive, 
resistive, and other touch technologies. Founded in 1982, MicroTouch reported 
sales of $128.5 million in 1997. With its headquarters and ISO 9001-certified 
manufacturing plant in Methuen, Mass., MicroTouch also maintains manufacturing 
facilities in New York, the United Kingdom, Japan, Taiwan, and Australia, along 
with sales offices and distributors in numerous other countries. MicroTouch 
Specialty Products Group was formed in 1995 as a result of the company's 
acquisition of Touch Technology, Inc., and specializes in the development of 5-
wire analog resistive and digital matrix resistive touchscreens. Factura 
Kiosks, a MicroTouch division in Rochester, N.Y., is the leading U.S. supplier 
of kiosk housings, specializing in creative design, engineering and 
manufacturing. MicroTouch Business Products Division manufacturers and markets 
Ibid, an award-winning, touch-sensitive electronic whiteboard and PC 
peripheral. The company's Web site address is www.microtouch.com.