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Background Imation Corp. (NYSE: IMN) is the world's largest manufacturer of private label film products and a leader in the development of quality products targeted to the photographic market. Launched as a spin-off of 3M on July 1, Imation is a $2.3 billion global imaging and information company that creates system, product and service solutions for the handling, storage and transmission and use of information. The company employs approximately 9,400 people and is based in Oakdale, Minn. Current conventional and digital photo product offerings include color print film, color slide film, single-use cameras and photo quality inkjet paper. Other Imation products for the photo industry include both data storage products, LS-120 high- capacity diskettes, Travan™ magnetic storage and optical storage solutions, and printing and publishing products including Rainbow™ color proofing systems. Imation's legacy in the manufacture and marketing of amateur photographic film began in 1964, when 3M purchased what was then one of the largest photographic manufacturing facilities in Europe, located in Ferrania, Italy. The U.S. facility for color film and single-use cameras is located in Weatherford, Okla. Store Brand Leader Since 1964, the company has grown to become the world's largest supplier of private label film, serving more than 125 retailers worldwide. Imation's retail partners include mass merchandisers, drug stores, photofinishers, photo specialty stores and minilabs who want to leverage their brand name by offering quality products at value prices. Imation provides its private label film retailers with a comprehensive marketing program that includes custom packaging, promotions and point-of-purchase materials. To help its retail partners manage their photo product departments more efficiently, Imation also offers Electronic Data Interchange (EDI) and Vendor Managed Inventory (VMI). EDI simplifies and speeds the ordering of products through direct computer communication between Imation and the retailers. With VMI, Imation monitors the inventory of its retail partners and ships product when needed to maintain inventories at specified levels. Imation continues to offer Scotch™ brand film as a premium value brand alternative to other nationally branded products. Imation Scotch color print films and Imation ScotchChrome™ color slide films are distributed through mass retailers, photo specialty/camera stores and one-hour photo stores. Imation offers 35mm color print film in 100, 200 and 400 speeds, and 35mm color slide film in 100, 400 and 640T (tungsten) speeds. The film is sold both as Imation Scotch color print film and Imation Scotch color slide film, and as store brand products. Quality Film Products With Imation film products, retailers can offer quality at value prices and consumers can choose the exceptional value Imation store brand photo products with confidence. Imation films consistently have been rated among the top films by various photography magazines. Confirming that the quality is comparable to that of nationally advertised brands, a consumer magazine recently said that, among the major color film manufacturers, all films are so similar, consumers might as well buy the best value film. Imation's Advanced Technology Generation (ATG) films, first introduced in 1992, brought high-efficiency emulsions that increased exposure latitude to a seven-stop range, from -2 to +4. The ATG films also featured enhanced developer inhibitor release (DIR) couplers for more accurate color reproduction. They offered compatibility both with the brand leader and among the various film speeds, thus improving the ease of development and the finished overall quality of prints. Imation's next generation of color print film, the HP (High Precision) line, was introduced in 1996 in the 400 speed; the 200 speed will be available in spring of 1997. Imation's new HP line offers:
Popular Single-Use Cameras Imation's line of single-use cameras, first introduced in daylight and flash versions in 1990, was expanded in 1995 to include slim-line, pocket-size cameras. This second generation of Daylight, Flash and Panoramic Single-Use Cameras features smaller, lighter, more modern-shaped camera bodies. The panoramic camera has a wide-angle lens for framing scenery. A waterproof camera features the daylight camera in a weather- resistant and waterproof casing, and can be used under water at depths of up to 6 feet. The newest generation of Imation single-use cameras, introduced in 1996, adds the equivalent of one more stop in exposure latitude. Called "System 800," the new Imation Scotch model provides excellent results under a wide range of conditions, both indoors and out. The wide exposure latitude offered by the Imation Scotch System 800 offers excellent prints with sharp details and realistic colors whether shot in deep shade or bright sunlight. The System 800 also was designed to accommodate greater processing latitude and printer compatibility; photo labs find that the system's easy printer set-up and processing consistency boost their productivity. As of fall 1996, all single-use cameras are pre-loaded with versatile Imation Scotch System 800 film in a 27-exposure roll (15 exposures for Panoramic). An improved optical viewfinder offers greater accuracy in framing the images. Approximately 90 percent of what the photographer sees in the viewfinder will appear in the developed photograph. This feature, along with a more-compact size, ensures that these slim-line cameras are easy for children to use. The size makes them ideal for travelers as well. All single-use cameras are available under the Imation Scotch brand name and also are offered to Imation's retail partners under store brand labels. Imation conducts a recycling program for all Imation-manufactured single-use cameras. Photo processors receive a rebate for each camera returned to Imation for recycling, plus Imation pays for the return shipping. Photo Fun with Garfield© New in 1996 are Garfield Single-Use Cameras, designed to make photography more fun for consumers. Garfield Single-Use Cameras are available in both daylight and flash models. Also in 1996, Imation's "Foto Fun Kit" for children was redesigned to reflect the Garfield theme. The kit comes with a Garfield single-use camera with flash, an easy-to- read and entertaining information booklet, a "Foto Fun" Album and a 3M Post-it™ Glue Stick Adhesive for mounting photos. This kit is designed to give children a fun and easy introduction to photography. Imation also offers children free membership in its Garfield "Let's Party" Club. Fun-loving photo cats (and children) can join either by completing membership forms available with all of Imation's Garfield Single-Use Cameras or by registering on Imation's World Wide Web site (http://www.imation.com). Upon enrolling in the "Let's Party" Club, Garfield fans receive a membership kit containing a personalized welcome letter signed by Garfield himself; a personalized membership card; an assortment of Garfield items; and special discount offers on Garfield merchandise. In addition, members get a catalog of Garfield merchandise and special seasonal mailings, including a newsletter with party ideas, cartoons and merchandise offers. "Let's Party" Club members even can order a special party package which includes everything needed to throw a Garfield theme party for birthdays and other occasions. Also new in 1996 is the Imation Photo Memory Maker Kit, designed especially for special occasions. This decorative single-use camera package, sold in convenient and value-priced four-pack kits of 15-exposure cameras, helps guests and party-goers record memories of the event for all to share. Photo Quality Inkjet Paper Imation Photographic Paper for Inkjet Printers was introduced in late 1996. Leveraging Imation's proven expertise in imaging, color science and precision coating, this new product lets desktop computer users print photo-quality images on common color inkjet printers. Photographic Paper for Inkjet Printers provides superior image quality and color reproduction, and significantly faster drying time than competitive products. It meets the growing consumer demand for high-quality color output from computers for reproducing images downloaded from the Internet, photographs from a digital camera or scans of a snapshot. The product employs a unique two-layer coating which controls the absorption and spreading of ink to provide rich colors and sharp detail without added texture, resulting in an image with a smooth, photo-like appearance. The paper is available in both 8-1/2 x 11 inch and 4 x 6 inch sizes. Future plans call for an A-4 size for international distribution. Consumer and Technical Support Imation's commitment to producing quality products is supplemented by an equal commitment to the 3M tradition of providing customers and retail accounts with quality, value and service. Its Photo Color Systems operations continue to be managed by the same people who, over the years, have developed strong relationships with customers. The company's emphasis on innovation, research and development also continues with Imation, as does a strong emphasis on environmental issues. Imation's technical support program includes a range of services that help make the job of photofinishing easier and improve the quality of the prints produced from Imation film. In addition to on-site service, publications supplied to wholesale and one- hour labs include the LabLine newsletter, which provides information on industry issues and advice on photo processing techniques, and the LabLine Training Series publication, which can be used by photo labs as an employee educational tool on photofinishing technology, theory and application. Further, photofinishers are offered technical help toll-free at 800-223-8579. Imation also offers fax-on-demand service for technical data sheets on Imation color print and slide film. These sheets ¬ which provide photofinishers and photographers critical information about film characteristics, reciprocity, exposure, processing times and color reproduction properties ¬ can be obtained 24 hours a day on Imation's World Wide Web site, http://www.imation.com, or by calling either 888-466-3456 (toll-free) or 612/704-4000. Imation also offers a toll-free consumer help line for purchasers of Imation- manufactured film. Questions related to the use of Imation film, camera handling and other photographic concerns are answered when consumers call 800-695-FILM (3456), Monday through Friday, from 8 a.m. to 5 p.m., Central Time. Imation offers a guarantee of satisfaction with all of its photo products. # # # Rainbow and Travan are trademarks of Imation Corp. Garfield is copyrighted by Paws Incorporated. 3M, Scotch and Post-it are registered trademarks of 3M.
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