Imation Corp. Historical Statement of Operations

(In $Millions)
(Unaudited)

                                Three months ended     Six months ended
                                

                                     June 30,             June 30,          
                                  1996     1995       1996       1995  
                                  
 
Net revenues                    $561.2    $565.0     $1,137.3  $1,141.7
Cost of goods sold               368.5     370.4        742.3     734.6

  Gross profit                   192.7     194.6        395.0     407.1

Operating expenses:
  Selling, general and
   administrative                159.2     138.6        289.9     276.5
  Research and development        45.6      57.9         93.5     114.3
  Restructuring charges           43.5       -           53.9       -  
  
 
    Total                        248.3     196.5        437.3     390.8

Operating (loss) income          (55.6)     (1.9)       (42.3)     16.3

Interest expense and other         2.2       4.7          5.4       9.9  


(Loss) income before tax and
minority interest                (57.8)     (6.6)       (47.7)      6.4

Income tax (benefit) provision   (19.7)     (2.8)       (15.6)      2.7

Minority interest                  (.3)      (.6)         (.4)      (.6)


Net (loss) income              $  (37.8)   $(3.2)      $(31.7)    $ 4.3  

Reported (Loss) Earnings
     per Share *                   (.90)     (.08)        (.76)      .10 

Earnings (Loss) per Share *     
  Excluding Restructuring
  and Special Charges               .11      (.08)         .40       .10 
  
  *Based upon assumed 41,885,000 average shares outstanding

Imation Corp. Pro Forma Balance Sheet

(In $Millions)
(Unaudited)

                                                 
                                                 June 30,         
                                                   1996    
                                                   
   
ASSETS
Current Assets
  Cash & Equivalents                            $   73.0
  Accounts receivable - net                        476.3     
  Inventories:
    Finished goods                                 244.1
    Work in process                                 74.2
    Raw materials and supplies                      89.9
       Total Inventories                           408.2
  Other current assets                              81.6     
       Total current assets                      1,039.1    

Property, plant and equipment - net                495.7   
Other Assets                                        30.4     
      Total Assets                              $1,565.2   
      
 
 

LIABILITIES AND EQUITY 
Current Liabilities 
   Accounts payable                             $  111.7   
   Accrued payroll                                  44.3    
   Other current liabilities                       126.2    
      Total current liabilities                    282.2   

Other Liabilities                                   79.8    

Long-Term Debt                                     280.0

Commitments and Contingencies 
 
Equity                                             923.2    
      Total Liabilities and Equity              $1,565.2 
      
   

Imation Corp. Supplemental Information

(Unaudited)

                     	Sales Change Analysis

                 % Change Second Quarter 1996 vs. 1995 

	                         U.S.      Inter-         World-
                                        national         wide
  
Volume                        8            5              6                 

Price                        (3)          (6)            (5)

Translation                  ---          (5)            (2)  

     Total                    5           (6)            (1)   
     




		Sales Change Analysis
                          % Change Year-to-Date 1996 vs. 1995

                           

                             U.S.      Inter-        World-
                                      national        wide

Volume                        6            7              6 

Price                        (4)          (7)            (5)

Translation                  ---          (3)            (1)  

     Total                    2           (3)            ---  
     

Imation Corp. Supplemental Information

(In $Millions)
(Unaudited)

                                Three months ended     Six months ended
                                     June 30,              June 30,         
                                  1996     1995        1996      1995   

Gross Margin % *                 35.7%     34.4%       35.4%     35.7% 

Revenue:

   United States                $284.5    $271.4      $565.3    $553.9                     
     % of total                  50.7%     48.0%       49.7%     48.5%
  
   International                $276.7    $293.6      $572.0    $587.8

     % of total                  49.3%     52.0%       50.3%     51.5%


Capital Spending                 $38.4     $46.4       $79.1     $92.4


Depreciation                     $46.0     $44.5       $94.5     $93.6

  *Excluding special one-time charges primarily related to start-up
   activities.

                                   ******

                                     As  of 
                                    June 30,          
                                  1996     1995    

Days Sales Outstanding             77       82 		
  
Months of Inventory          	    3.4      4.3



                                   ******

Approximate Employee Count at July 1, 1996:  9,700

Shares outstanding on July 1, 1996:  41,930,187

Copyright 1996 Imation. All rights reserved.