Oakdale, Minn. (October 25, 1996) -- Imation Corp. (NYSE: IMN), the new imaging and information company recently spun-off from 3M, today announced the completion of its acquisition of Seattle-based Luminous Corporation, a leading developer and marketer of desktop software to the prepress, print production, printing and graphic arts industries.

The completion of the Luminous acquisition finalizes a move that combines Imation's strong digital and conventional proofing capabilities with Luminous' workflow automation software -- enabling Imation to offer unprecedented support for printing, prepress and graphic arts customers as they introduce digital capabilities to conventional printing operations.

"Imation and Luminous will take advantage of the natural synergies in our product lines," said Bill Monahan, chairman and chief executive officer, Imation Corp. "As the industry moves toward increasingly digital processes, Imation is now in a unique position to help customers succeed in both conventional and automated workflow environments."

As announced previously, the consideration for the acquisition was paid in the form of cash and Imation common stock accounted for as a purchase, with a portion payable under a performance-based incentive compensation plan for Luminous employees. Imation will accelerate amortization of the goodwill acquired in the range of $10-$12 million in 1996. Without the goodwill amortization, there would be no meaningful impact on Imation's reported operating results for 1996 as a result of the acquisition. The acquisition is expected to contribute positively to Imation's publicly stated economic profit and earnings per share improvement goals. Additional terms of the transaction were not disclosed.

As an independent subsidiary, Luminous will continue to serve its customers separately, while the subsidiary and its parent seek ways to leverage the companies' synergies for new product development.

"This transaction significantly strengthens our collective position in the digital prepress market," said Jim Betlyon, who serves as president of the new Imation subsidiary. "As we move forward, the integration of Luminous' proven software development, existing product portfolio and sales capabilities with Imation+s digital proofing, color science and data storage products will dramatically improve our ability to meet the needs of a broader range of customers in the printing industry."

Imation sees significant opportunities to increase sales of Luminous' products through its worldwide network of distributors and resellers.

"Today and in the future, we are confident that those customers moving to increasingly automated, digital workflow environments will benefit from our expanding imaging and information solution capabilities," said Chuck Oesterlein, vice president of Imation's Printing and Publishing Systems business unit. "Luminous' leadership in providing software that accelerates workflow automation strategically complements our current capabilities in providing the other core elements of a digital workflow solution."

Luminous Corporation is focused entirely on the needs of prepress and print professionals. The new Imation subsidiary's mission is to deliver products, services and technologies that support the industry's shift to digital prepress and printing, as well as to expanded media production for business intranets and the World Wide Web. Luminous employs 69 people and is based in Seattle. Additional information about Luminous products and services is available on its website at http://www.luminous.com.

Imation supplies a variety of products and services worldwide for the information processing industry, specializing in imaging applications and information storage. The company manufactures and markets digital and conventional proofing systems, including the industry standard 3M™ Matchprint™ color proofing system from Imation, Imation Rainbow™ digital proofing systems, imagesetting materials, printing plates, graphic arts films, carbonless paper products and chemistries to customers worldwide.

The business units that comprise 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.

Matchprint and Rainbow are trademarks of Imation Corp.
3M is a trademark of 3M Company.

Copyright 1996 Imation. All rights reserved.