Arizona Republic Becomes First in Newspaper Industry to Use Electronic Ink; Marks Latest Step On Road to E-Newspapers and Books

Business Wire, August 30, 2000

Business/Technology Editors

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CAMBRIDGE, Mass.--(BUSINESS WIRE)--Aug. 30, 2000

Arizona Republic to Incorporate E Ink's Immedia(TM)Displays

into Point of Purchase Signage at Safeway Supermarkets

E Ink Corporation, the leading developer and marketer of electronic ink technology, today announced The Arizona Republic will be the first newspaper to use electronic ink displays to transmit news to locations around Phoenix. The Arizona Republic will incorporate E Ink's Immedia displays in select Phoenix-area retail locations.

The displays will be used in 50 public locations during a three-month trial period. The Arizona Republic will use Immedia displays to provide daily news updates as well as to promote stories in the following day's paper and on its web site, www.arizonarepublic.com. The electronic ink based signs at all locations will be networked together, allowing messages to be updated instantly from one location. Safeway, Inc. will be the first retailer to feature the displays in ten of its stores.

"The Arizona Republic is committed to providing its readers with timely news from the Phoenix area and from around the world," said Gena Zestrijan, retail merchandising manager for The Arizona Republic. "By incorporating Immedia as a part of our newspaper vending stands, we can instantly alert our readers to breaking news, let them know what they can expect to read about in tomorrow's paper and increase our circulation."

The Arizona Republic's signs will also be the first application of Immedia displays used by a content supplier on the premises of a retailer.

"As one of the largest food and drug retailers in North America, Safeway strives to provide its customers with the best shopping experience," said Debra Albery, public affairs director for Safeway. "The Arizona Republic's use of Immedia in our stores lets our shoppers take advantage of this state-of-the-art technology to obtain news and other information while they shop."

"By using Immedia, The Arizona Republic recognizes the importance of reaching out to readers at the point of purchase," said Cyndi Reitmeyer, retail marketing manager at E Ink. "And because they're going to be communicating messages to over 50 locations, the use of Immedia assures all locations will deliver the same news in sync with each other. That kind of delivery is impossible with traditional in-store signage."

"The use of Immedia to provide updated news represents yet another important step by E Ink on the road to creating electronic newspapers that are as easy-to-read as ink on paper," said Jim Iuliano, president and CEO of E Ink.

Powered by E Ink

The Arizona Republic signs measure approximately 44" wide by 15" tall and incorporate 2 lines of electronic ink. The Arizona Republic controls and updates the messages displayed on the signs through an Internet paging network. The signs operate on a minimal amount of electricity and can be plugged into a traditional electrical outlet.

About The Arizona Republic

CNI Ventures, the investment arm of Central Newspapers, former owners of The Arizona Republic, invested in Immedia along with other publishing companies to help fund the development of this new technology. Gannett recently purchased The Arizona Republic and has indicated their support in the testing and development of E Ink's technology.

About Safeway, Inc.

Safeway Inc. is one of the largest food and drug retailers in North America. As of June 17, 2000, the company operated 1,665 stores (including 322 Vons, 116 Dominick's, and 123 Randalls/Tom Thumb stores) in the Western, Southwestern, Rocky Mountain, Midwestern and Mid-Atlantic regions of the United States and in western Canada. In support of its stores, Safeway has an extensive network of distribution, manufacturing and food processing facilities. Safeway also holds a 49% interest in Casa Ley, S.A. de C.V., which at June 17, 2000 operated 91 food and general merchandise stores in western Mexico.

About E Ink

E Ink Corporation, headquartered in Cambridge, Massachusetts, was founded in 1997 to commercialize the use of a proprietary "electronic ink" that will have a far-reaching impact on how the world visually communicates information. E Ink's technology has the potential to span virtually every industry and create new communications vehicles. The first commercial product using this revolutionary technology is Immedia, a wireless display with the capability to instantly change messages. E Ink is a private corporation that includes among its investors and strategic partners Motorola, Inc. (NYSE: MOT), Lucent Technologies (NYSE: LU), Creavis GmbH (NYSE: VEB), The Interpublic Group of Companies, Inc. (NYSE: IPS), Havas (a division of the Vivendi Group in France), The Hearst Corporation, Atlas Venture, Applied Technology and Solstice Capital.

E Ink has won several prestigious awards for its electronic ink technology including being named one of Upside's Hot 100 Private Companies of 2000, Industry Week's 1999 "Technology of the Year," Popular Science's 1999 "Best of What's New" and a Technologic Partners' 1999 Technology Outlook "Investor's Choice." For additional information, call 617-499-6000 or visit E Ink's web site at www.eink.com.