Imation RipGO! Offers Seamless Integration With Microsoft Windows XP; New Device First Portable Mini CD-R Burner and Digital Audio Player Supported by Microsoft Windows XP

Business Wire, Oct 24, 2001

Business Editors/High Tech Writers

OAKDALE, Minn.--(BUSINESS WIRE)--Oct. 24, 2001

Imation Corp. (NYSE:IMN), a worldwide leader in data storage and information management, today announced full support for the Microsoft(R) Windows(R) XP operating system and Windows Media Audio (WMA) in its new Imation RipGO! mini CD-R burner and digital audio player. Building on the momentum of Internet and digital media activity, Windows XP includes many improvements that increase productivity and provide both business and home users with an easy-to-use and exciting PC experience.

Designed to fit in the palm of your hand, Imation RipGO! is the smallest device available today for both recording compressed music on CDs and high-performance playback of digital music in MP3 and WMA formats. Its sleek, battery-powered USB CD-R drive uses mini (80mm) CD-R discs to store and play up to 185MB of digital information -- enough capacity for six hours of CD-quality music with WMA or three hours playback with MP3.

"Imation continues to respond to customer demands for digital storage solutions that offer advanced productivity, compatibility and portability," said Steve Carter, vice president and general manager, Imation's Personal Storage Solutions Business. "Working with Microsoft and incorporating Windows XP compatibility into Imation RipGO! extends the personal computing experience by acting as the integration point for devices - delivering enhanced reliability, security and performance."

Microsoft Windows XP delivers an all-in-one experience for creating, capturing, and playing digital music on computers and portable music players, such as Imation RipGO!. Featuring built-in capabilities to transfer WMA and MP3 files to devices, Windows XP enables users to easily create audio CDs with Windows Media Player for Windows XP. WMA is the most advanced audio compression technology available today, and is designed to take advantage of innovative new features and improvements that are only available as a part of the Windows XP operating system.

"Windows XP opens up tremendous new digital music experiences, both on the PC and on devices, such as Imation RipGO!," said Dave Fester, general manager of the Windows Digital Media Division at Microsoft. "With Windows XP and RipGO!, you can take hours of high-quality music with you wherever you go."

Leveraging Windows XP dramatically improves the computing experience for home and business users with revolutionary stability, reliability and holistic digital experiences. With Windows XP, consumers can create, play and interact using digital media, home networking, instant messaging, voice and video to do things they have never done before with a PC. Mobile business users can work smarter and faster, employing productivity and connectivity features ranging from remote access to multilingual communication to meet the demands of any size company.

Imation RipGO! mini CD-R burner and digital audio player will be available October 25th at a manufacturer's suggested retail price of $399.99 (actual pricing may vary). The mini CD-R burner and digital audio player works with Imation's widely available and easy-to-use mini (80mm) CD-R media, available in five cool neon colors, at an estimated street price of $9.99.

About Imation Corp.

Imation Corp. is a $1.2 billion global company widely recognized as a leader in removable data storage and color image management.

Imation removable data storage offerings are a key ingredient in much of the world's technology infrastructure - from corporate data centers, to networks, to small businesses and home users. The product line is one of the broadest in the industry, with magnetic and optical products for the enterprise data center, the network environment, and the consumer. For business users, Imation magnetic tape cartridges deliver reliable data storage in data processing, backup and archive applications. Imation's storage consulting services help customers to improve performance, maximize efficiency, and minimize cost for a multitude of storage environments. Consumers use Imation's broad range of digital media, drives and accessories to store photos, data, music and more. On its own and through industry alliances, Imation continues to pioneer today's proven tape, optical and diskette technologies. Data storage revenues were $866 million in 2000.

As of September 30, 2001, Imation employed approximately 4,100 people worldwide. The Company has sales in over 60 countries with international revenues contributing approximately 45% of total sales. Additional information about Imation is available on the Company's website at http://www.imation.com, or by calling Imation at 1.888.466.3456. To receive recent news releases, corporate information and related shareholder services, call Imation's shareholder information line at 1.888.IMN.NYSE (1.888.466.6973).

Imation and the Imation logo are trademarks of Imation Corp. All other trademarks are the property of their respective owners.

Certain information contained in this news release, which does not relate to historical financial information may be deemed to constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties that could cause the Company's actual results in the future to differ materially from its historical results and those presently anticipated or projected. Among these factors are the Company's ability to meet its cost reduction and revenue growth targets, its ability to implement its restructuring program on a timely basis and to achieve the projected benefits, its ability to introduce new offerings in a timely manner, the competitive pricing environment, foreign currency fluctuations, the ability of Imation to secure adequate supply of certain high demand products, the ready availability and price of energy, the market acceptance of newly introduced product and service offerings, the rate of decline for certain existing products as well as various factors set forth in the Company's filings with the Securities and Exchange Commission.