Rimage to Supply $11 Million of Optical Disc Publishing Systems

Rimage Corporation has entered into an agreement to supply approximately $11.0 million of Rimage’s recently introduced 5400N disc publishing systems for integration into retail photo labs. Rimage expects to ship approximately $3.0 million under this agreement in the second quarter with the balance of the systems scheduled for shipment during the second half of 2010.

A multi-year consumable supply and service component is also part of the agreement.

Sherman L. Black, president and chief executive officer, commented: “This agreement reflects the ongoing market opportunity for our products related to photo labs in retail establishments. We are very pleased that more than half of the systems associated with this agreement involve new installations, while the remaining systems will replace existing Rimage equipment.”

He added: “This agreement significantly strengthens our outlook for 2010 as we continue implementing a comprehensive strategy for transforming Rimage into a higher-performing business. We are doing this by strengthening our core disc publishing business; generating new revenue streams by developing total solutions that leverage our core capabilities with greater software content; and identifying and investing in future opportunities in adjacent markets.”