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Imation Outlines Strategy

NEW YORK -- Imation Corp. (NYSE:IMN) today
unveiled its strategy of increasing its presence in the fast growing and
evolving consumer storage and product arena, through brand acquisition and
extensions, while keeping a solid foundation in its profitable commercial
data storage tape market. Imation Corp. President and CEO Frank Russomanno
outlined the strategy in a meeting with the financial community today.

"With the recent announcement of our pending acquisition of the TDK Brand
Recording Media business in addition to our Memorex acquisition last year,
we are aggressively stepping out front in this industry, as a new brand
company, building a portfolio of strong brands that we own, manage, or
distribute in both consumer retail and commercial markets," Russomanno said.
"This is an industry in need of consolidation. We sell Imation, Memorex,
IBM, Sun StorageTek, HP and Exabyte branded media today and look forward to
selling the TDK brand of recording media in the future. We also sell storage
related accessories such as drives, cases, and supplies under several
brands. With the announcement of our intention to acquire certain assets of
Memcorp, we will extend the Memorex brand as we add their portfolio of
consumer electronics products as well."

"Our strategy is clear, straightforward and actionable. We are building a
portfolio of brands in both consumer and commercial markets. We are
optimizing our solid core position in magnetic tape as we continue to invest
in current and future tape formats. In addition, we are growing our consumer
product portfolio across multiple brands and extending brands selectively
into the consumer electronics arena. In fast-growing and rapidly changing
technology markets, our channel and distribution partners look to us to
bring the right products, with the right brands into the right markets and
regions around the world."

"With this strategy, we have targeted ten to fifteen percent compound annual
growth in revenue and earnings over the next five years. We believe we have
the elements in place to continue our success into the future. We have the
number one market share position overall in removable media, strong brands
across all major regions, leading positions in magnetic and optical
products, and growing revenues in flash products in all regions. We will
maintain the financial strength and flexibility necessary to continue our
strategic process. With these actions we can leverage our global
distribution coverage and supply chain expertise across channels and
regions. We can expand our product portfolio, technology base, operational
excellence and cost efficiency, and the brands complement one another in
terms of their offerings, geographic and channel coverage and brand promise.
We've added significant consumer and retail experience to our management
team with the recent addition of former Pillsbury marketing executive Steve
Moss, as Chief Marketing Officer for Imation."

"We will transform Imation into a brand and product management company with
a balanced portfolio of strong commercial and consumer brands. As the leader
in tape technology, we remain committed to being first to market with new
tape formats. We intend to be the number one or number two removable media
supplier, regionally or globally, in our four pillars of storage --
magnetic, optical, flash and removable hard drives. Through our investment
in brands, we will increase customer loyalty and channel preference across
multiple brands in both commercial and consumer markets while increasing
shelf presence with major retailers," Russomanno concluded.

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