CD-ROM Services Leader to Provide Mastering, Replication and Fulfillment for DVD Effective November 1

Oakdale, Minn. (October 16, 1996) -- Imation Corp. (NYSE: IMN), the new imaging and information company recently spun-off from 3M, today announced that it will offer full DVD-ROM manufacturing, mastering, replication, packaging and fulfillment services from its Menomonie, Wis. plant, beginning November 1.

With its high capacity and enhanced quality, DVD-ROM technology will benefit information publishers with a need to distribute large databases, software applications and multimedia. DVD is a high-density, next-generation compact disc, identical in size and appearance to current CDs. By including from one to four information layers, DVD-ROM discs can hold from 4.7 gigabytes to 17 gigabytes of data, and DVD drives are backwards compatible to existing CD-ROM discs.

"Imation is proud to be among the first companies offering DVD production and turnkey customer services," said Michael Stevens, director of Imation's Optical Storage Solutions group. "We were the first U.S. CD-ROM manufacturer as 3M and are the industry leader in quick-turn CD replication. Imation is uniquely able to help customers enter the DVD-ROM market with high-quality product and tested delivery and distribution processes."

"DVD-ROM requires a fraction of the packaging and shipping costs of multiple CD-ROM sets, and provides better performance for the end user because there is no need to sort through multiple discs," notes Julie Schwerin, president of InfoTech, a Woodstock, Vt.-based market research and consulting firm.

DVD-ROM drive sales are projected to ramp up quickly, according to InfoTech. Within two years of market release, DVD-ROM drives are expected to be standard equipment on multimedia PCs, and by the year 2000, drive unit sales are expected to approach 50 million worldwide.

Equipment and processes for DVD-ROM were designed for ease of transport to other Imation plants, including facilities in Breda, The Netherlands, and Fremont, Calif. This will enable the company to quickly respond to expanding demand for DVD-ROM technology in the United States and Europe.

"DVD-ROM replication requires significant development in mastering and molding processes, in addition to new processes such as bonding, dual layer media and semi-reflector technologies," said Les Johnson, Imation business development manager for DVD. "Imation has leveraged its optical technology experience to develop proprietary manufacturing materials and processes for DVD production."

"Imation has long set high standards for quality and service in the optical publishing industry, both when it was a part of 3M and today. Imation's early entry in the DVD-ROM market assures that corporate and professional information publishers have a manufacturing partner that can meet their most exacting requirements for disc quality with fast turnaround times, while guiding them through the challenges of producing content for a new medium," Schwerin said.

Imation supplies a variety of products and services worldwide for the information processing industry, specializing in imaging applications and information storage. The company is a world leader in branded removable data storage media, with leadership positions in optical media, diskettes, minicartridges, and half-inch tape cartridges for desktop and multi-user computing environments. The business units that make up Imation had 1995 revenues of $2.2 billion while part of 3M. The company employs approximately 9,700 people worldwide and is based in Oakdale, Minn.

Additional information about Imation is available on the company's website at http://www.imation.com.

Copyright 1996 Imation. All rights reserved.