LINKE Interlink Electronics (MM)

Interlink Electronics, Inc. (Nasdaq:LINKE) today announced that NASDAQ has granted its request for continued listing, subject to certain conditions. As previously announced, NASDAQ had earlier notified Interlink of its intention to delist Interlink's stock as a result of the company's failure to timely file its quarterly report on Form 10-Q for the third quarter of 2005. As previously announced, the failure is the result of an investigation being conducted at the direction of Interlink's Audit Committee into certain financial matters requiring the restatements of Interlink's financial statements. The investigation has made substantial progress and Interlink expects to resume normal financial reporting upon or soon after its completion. In explaining its decision to grant Interlink's request for continued listing, NASDAQ stated: "The issues causing the delay in filing were first identified by the Company and its consultants, during a review intended to strengthen controls. It took the proper steps in response to identification of the problems, and appears to have a good understanding of the issues leading to the need for restatement. Although the investigation, if conducted thoroughly, is likely to take some time, the Company is already taking appropriate remedial measures, and appears committed to adopt the (Audit) Committee's recommendations." There are two conditions to the grant of continued listing: (1) on or before February 3, 2006, Interlink must provide NASDAQ with a copy of the investigation report or a response to questions relating to the investigation; and (2) Interlink must file its quarterly report for the third quarter of 2005 and all required restatements on or before March 1, 2006. Interlink is also required to provide prompt notification of any significant events that occur during this period. Gene Hovanec, Chairman of the Audit Committee stated: "This is obviously a difficult time for Interlink and its stockholders but I am encouraged by the progress that the investigation team has made and hopeful that the investigation can be completed in a timely and effective manner. As NASDAQ noted in its decision, Interlink continues to make a major effort to upgrade its internal accounting systems and I am convinced that we will emerge from this process with a solid set of internal controls and procedures that will serve Interlink and its stockholders well in the future." About Interlink Electronics, Inc. Interlink Electronics, Inc. (Nasdaq:LINKE) is a world leader in the development of intuitive interface technologies and solutions for business and home applications. Creating today's interface standards, our Business Communications, E-Transactions, Home Entertainment and Specialty Components businesses have established Interlink as the comprehensive source for branded and OEM solutions. Selected customers who buy through our OEM channel include Dell, HP/Compaq, InFocus, Microsoft, Mitsubishi, NEC, Sanyo, Sharp, Sony and Toshiba. Recognized worldwide for innovative interface technologies and solutions, Interlink Electronics, Inc. serves an international customer base from its corporate headquarters in Camarillo, Calif., and offices in Tokyo, Hong Kong and China. The Company currently holds numerous patents on sensor technologies, e-signature technologies, wireless communication protocols and product design properties. See Interlink Electronics online at http://www.interlinkelectronics.com/ or in Japan at http://www.interlinkelec.co.jp/ All registrations and trademarks are properties of their respective owners. This document contains forward-looking statements that involve a number of risks and uncertainties. The following are among the factors that could cause actual results to differ materially from the forward-looking statements: business conditions and growth in the electronics industry and general economies, both domestic and international; lower than expected customer orders; delays in receipt of orders or cancellation of orders; competitive factors, including increased competition, new product offerings by competitors and price pressures; the availability of third party parts and supplies at reasonable prices; changes in product mix; significant quarterly performance fluctuations due to the receipt of a significant portion of customer orders and product shipments in the last month of each quarter; and product shipment interruptions due to manufacturing problems. The forward-looking statements contained in this document regarding the Company's financial statements should be considered in light of these factors.