Interlink Announces Completion of Independent Investigation and Intention to File Restated Financial Statements

Interlink Electronics, Inc. (Nasdaq:LINKE), a world
leader in the development of intuitive interface technologies and
solutions for business and home applications, today announced the
completion of the independent investigation undertaken at the
direction of the Audit Committee by Dorsey & Whitney, LLP. Dorsey &
Whitney retained the services of PricewaterhouseCoopers LLP with
respect to various forensic and electronic procedures performed in the
course of the investigation.
   The investigation focused on various accounting matters, including
those reported in Interlink's press release of November 2, 2005. All
of the matters investigated by the investigating group were brought to
its attention by Interlink and the investigation did not reveal
additional material items warranting investigation.
   Interlink proposes to restate certain of its financial statements
to reflect the results of its investigation. The restatement will be
incorporated in Interlink's annual report on Form 10-K for the year
ended December 31, 2005. Interlink will also file its late quarterly
report on form 10-Q for the third quarter of 2005.
   In order to accommodate its filing schedule, Interlink has applied
to Nasdaq for an extension of time to file its late quarterly report
and all required restatements until March 31, 2006. As previously
announced, Nasdaq granted Interlink's request for continued listing
subject to the condition that the late quarterly report and all
required restatements be filed on or before March 1. Nasdaq has
Interlink's request for an extension to March 31 under consideration.
Interlink has responded to staff requests for information and expects
the matter to be taken up by the hearings panel in the near future.

   About Interlink Electronics, Inc.

   Interlink Electronics, Inc. (Nasdaq:LINKE) is a world leader in
the design and manufacture of intuitive interface technologies and
products. Creating today's interface standards, the Company's business
communications, e-transactions, home entertainment and specialty
businesses have established Interlink as the industry's comprehensive
source for branded and OEM solutions.
   Recognized worldwide for innovative technologies and solutions,
Interlink Electronics, Inc. serves a global customer-base from its
corporate headquarters in Camarillo, CA and offices in Tokyo, Hong
Kong and Taiwan. The Company holds numerous patents protecting its
sensor technologies, wireless communications protocol and product
design properties. See Interlink Electronics online at
www.interlinkelectronics.com or in Japan at
http://www.interlinkelec.co.jp/.

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respective owners.

   This release 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 industry and revenue trends, technology adoption, and future
business activities should be considered in light of these factors.