The current paper describes research that is aimed to elucidate our understanding of technology factors that may help users of home exercise equipment to stay motivated for doing regular work-outs. In particular, we investigated the effects of immersion and coaching by a virtual agent on intrinsic motivation and the sense of presence of participants cycling on a stationary home exercise bike. A basic two-by-two within-subjects experimental design was employed whereby participants were presented with a virtual racetrack with two levels of immersion (high vs. low) and two levels of a virtual coach (with vs. without). Results indicate a clear positive effect of immersion on both motivation and presence. The virtual coach significantly lowered the perceived control and pressure/tension dimensions of intrinsic motivation, but did not affect the enjoyment dimension. The presence of the virtual coach also reduced negative effects associated with VEs.