MicroTouch's Specialty Products Group Expanding, Growing and Staying in      
                                   Austin, TX                                   
                       (Business Wire; 05/12/99)                       

AUSTIN, TEXAS (May 12) BUSINESS WIRE -May 12, 1999--MicroTouch Systems, Inc. 
(NASDAQ:MTSI) Specialty Products Group (SPG) today announced it has moved its 
offices and manufacturing operations to a 23,000 square-foot location, more 
than doubling the size of its old address. The new, larger location will help 
meet current production demands as well as facilitate SPG's anticipated growth 
plans.

The new location at 2222 West Rundberg Lane, will be home to all SPG 
operations, including manufacturing, engineering and sales support of 
MicroTouch customized resistive touchscreen product line. Not only has the 
company's facility expanded, so has its workforce; SPG has hired 25 new 
employees since March and has plans of adding a second shift by mid-year.

Acting as an extension of MicroTouch's customer development team, SPG designs 
and manufactures resistive touchscreens to virtually any specification. Its 
products are used in a variety of applications, including airplane seatback 
entertainment devices and home appliances.

SPG's charter within MicroTouch is to participate in generating high-volume 
resistive touchscreen business through effective pre- and post-sales project 
management. SPG is responsible for development of the non-standard resistive 
product line. It supports the entire product cycle from design, rapid 
prototyping, and large production runs. Resistive Technology

MicroTouch manufactures three types of TouchTek resistive touchscreens - 4-wire 
analog, 5-wire analog, and digital matrix. TouchTek touchscreens consist of a 
conductively-coated polyester topsheet and conductively-coated bottom glass 
layer. The opposing conductive coatings are separated by minute "spacer dots". 
A touch is registered when pressure on the screen surface creates contact 
between the conductive layers.

SPG recently completed the digital matrix touchscreens found in SmartLinc's 
(Irvine, California) home automation control system, a wall-mounted touchscreen 
panel that controls virtually every major appliance and function in the home, 
from lights, home theatre, entertainment systems, and motorized drapes, to 
security systems, and thermostats.  About MicroTouch

MicroTouch is the leading worldwide vendor of touch-input solutions for 
virtually every application. For public access and business systems, the 
company offers its highly durable ClearTek 3000 capacitive and TouchTek5 5-wire 
resistive touchscreens and touch-enabled monitors. For mobile professional and 
consumer products, MicroTouch offers TouchTek4 4-wire resistive touchscreens. 
For specialty applications, the company offers TouchTekDM digital matrix 
touchscreens. The MicroTouch Business Products Division is the U.S. market 
leader in touch-enabled digital whiteboards. Its Ibid product line has earned 
awards from several leading trade publications. Factura Kiosks, a MicroTouch 
division in Rochester, N.Y., is the leading U.S. supplier of kiosk enclosures, 
specializing in creative design, engineering and manufacturing. The MicroTouch 
Specialty Products Group, located in Austin, Texas, focuses on the development 
of analog resistive and digital matrix resistive touchscreens. MicroTouch 
operates TouchStore.com; an Internet-based electronic commerce site devoted 
exclusively to the sale of touchscreen monitors and related products. Founded 
in 1982, MicroTouch reported sales of $144.4 million in 1998. The company's Web 
site is www.microtouch.com/info

   -0- kc/bos*

 CONTACT: MicroTouch Systems, Inc.           Jennifer Finn, 978-659-9350

          [email protected]

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