e.Digital Corporation (fka EDIG)

[Tinroad]

Imation and DataPlay Announce Strategic Partnership; Agreements Include Manufacturing and Distribution
TUESDAY, JUNE 19, 2001 7:01 AM
http://www.businesswire.com/cgi-bin/f_headline.cgi?day0/211702043&ticker=imn

OAKDALE, Minn., Jun 19, 2001 (BUSINESS WIRE) -- Imation Corp. (NYSE:IMN), a worldwide leader in data storage and information management, and DataPlay, the developer of the universal media format for all things digital, today announced they have finalized a series of agreements related to the upcoming introduction of DataPlay digital media. These agreements position Imation as the first U.S.-based manufacturer of both blank and pre-recorded DataPlay digital media, as well as the semi-exclusive worldwide distribution partner.

"With its long history and development experience in optical storage technologies, Imation will be a valuable addition to DataPlay's team of strategic partners," said Steve Volk, chairman and CEO of DataPlay. "We will also benefit from Imation's extensive worldwide distribution capabilities as DataPlay penetrates the global market."

DataPlay selected Imation to be the first U.S.-based manufacturer of both blank and pre-recorded DataPlay digital media based on its manufacturing excellence and technology leadership. Imation plans to manufacture the media in its Wahpeton, N.D. plant, which was recently selected by Industry Week, the leading manufacturing management magazine, as one of the "14 Best Manufacturing Plants in North America and Europe." The award recognizes world-class manufacturing capabilities based on the company's performance metrics and practices in such categories as benchmarking, community involvement, customer and supplier relations, employee involvement, environment and safety programs, inventory management, manufacturing operations and flexibility, market results, productivity, quality, and use of technology.

"DataPlay digital media, with its unique size, capacity and functionality, has the potential to deliver the most universal, portable and cost-effective digital media solution available in the marketplace," said Steve Ladwig, senior vice president of Imation Corp., and president of Imation Data Storage and Information Management. "Imation is partnering with DataPlay because its technology shows strong growth potential and the opportunity to successfully compete against smaller form factor media already in the market."

Imation was also among a group of leading consumer electronic device manufacturers, technology companies, and retail distributors who recently made significant investments in DataPlay's latest round of financing, which raised an additional $55 million.

In addition to its position as a media manufacturer, Imation will be the semi-exclusive worldwide distribution partner of blank DataPlay digital media. DataPlay digital media enables access to all forms of digital content across all digital devices and platforms, including music, images, documents, software, games, video and more. One 500MB digital media can hold more than 11 hours of music downloads or five complete pre-recorded albums of CD-quality music, hundreds of high-resolution photographs, or dozens of games.

In January of this year, DataPlay won the Best of Show Award for Mobile Devices and Best Overall Lifestyle Product at the Consumer Electronics Show in Las Vegas, an event that has built a reputation for being the preeminent venue for the industry's most promising companies and products. DataPlay was recognized for its value, usability, inventiveness and design. DataPlay also received the CES Innovations 2001 award in the Blank Media category at the show in recognition of its innovative consumer electronics product.

DataPlay is slated for commercial availability in Q4 2001.

About DataPlay, Inc.

DataPlay, Inc. was incorporated in November 1998 to develop a Web-enabled digital content recording and distribution media for portable Internet appliances and hand-held consumer electronic and entertainment devices. Headquartered in Boulder, Colorado, the Company employs more than 175 people in the United States, Singapore and Japan. Visit DataPlay on the Internet at www.dataplay.com.

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.

Imation's Color Technologies division offers the recognized industry-standard for color accuracy with the MatchPrint brand of analog and digital proofing systems. Imation's color proofing systems ensure accurate color in printed materials ranging from magazines to packaging to advertising materials. The Company's color calibration software is embedded in an increasing number of OEMs' printing and copying equipment. Color Technologies revenues were $273 million in 2000.

Imation Digital Solutions and Services (DSS) is focused in two areas - OEM Services and Document Imaging. Imation DSS services wide-format color and imaging equipment through relationships with large OEMs. In Document Imaging, Imation DSS is a system integrator for customers with wide-format engineering document imaging systems who are migrating from analog to digital systems. DSS revenues were $94 million in 2000.

As of March 31, 2001, Imation employed approximately 4,200 people worldwide. The Company has sales in over 60 countries with international revenues contributing 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 is a trademark of Imation Corp. DataPlay is a trademark of DataPlay Inc. 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.

CONTACT: Imation Data Storage & Information Management, Oakdale
Jennifer Finzen, 651/704-3558
[e-mail]
or
Fleishman-Hillard, Inc.
Sarah McNeil, 612/573-3124
[e-mail]
or
Dotted Line Communications for DataPlay
Aimee Clark, 415/292-1933
[e-mail]

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KEYWORD: MINNESOTA NORTH DAKOTA COLORADO
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS
ELECTRONIC
GAMES/MULTIMEDIA
HARDWARE
INTERNET
SOFTWARE
MARKETING
AGREEMENTS