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For Immediate Release

THALES AWARDS VARATOUCH'S VARAPOINT SOLUTION A DESIGN-WIN FOR VARIOUS AVIONIC APPLICATIONS

El Dorado Hills, Calif. - May 14, 2004 - Thales (Paris:TCFP.PA), Europe's largest electronic avionics designer and manufacturer has awarded Varatouch a design win and initial purchase of the company's Varapoint product. The Varapoint product is a Human-Machine-Interface (HMI) that combines Varatouch's R2 technology of resistive-rubber, software drivers and innovative human-factor designs.

"Varatouch's solution meets our needs in terms of overall performance, durability and especially cost" said a member of the procurement personnel at Thales. "With Varatouch, we were able to implement a HMI solution that exceeded our performance and durability expectations while giving us significant value when compared to other analog input devices."

Varatouch's technology exploits the inherent limitations of traditional digital or binary switches that make some HMI tasks difficult or even impossible. Varatouch's analog input, control and sensor technologies have a distinct advantage over binary or digital tools when customers need to input/control/measure 'shades of gray' as opposed to either 'on or off.'

"Varatouch has recently re-defined its business model to focus on providing innovative designs via leveraging its R2 intellectual property. Varatouch's distribution partners will henceforth market, manufacture and support customers such as Thales in the near future. We hope to be able to announce some new distribution partners and further design wins with strategic partners in the very near future," said Mike Rogers, founder and CTO of Varatouch.

About Thales
Thales is a world leader in professional electronics in three main markets: Aerospace, Defense and IT & Services. The Group employs around 63,000 staff in almost 50 countries and generated revenues in excess of 10.6 billion euros in 2003, with international sales accounting for 75 percent. www.thalesgroup.com.

About Varatouch
Varatouch is a privately-held, Venture-backed company based in El Dorado Hills, CA. Varatouch creates intellectual property for the Human-Machine-Interface marketplace focusing on its patented R2 technology of resistive-rubber, software drivers and innovative human-factor designs. Varatouch currently partners with Mitsubishi Chemical and Shin Etsu Polymers to distribute and manufacture all of its products. www.varatouch.com

Contact
Varatouch
Tim Martin
+1 916.941.0744 x23
tmartin@varatouch.com