For 4Q07, Imation Expects Revenue From $640 Million to $690 Million

Imation Corp.
announced that based upon preliminary results, it expects
earnings, prior to any restructuring and other charges including those related
to goodwill impairment, to exceed the Company’s previous guidance for the
fourth quarter and full year ended December 31, 2007. Operating income for the
quarter, before restructuring and other charges, is estimated to be at least
$35.0 million, compared with guidance of between $23.0 million and
$28.0 million. Final operating income on a GAAP basis will include
restructuring and other charges including a likely charge associated with the
Company’s annual goodwill impairment assessment as discussed below, which is
not yet finalized. The Company expects revenue for the quarter to be at the
high end of its previous guidance range of $640 million to $690 million.

Frank Russomanno, President and CEO said: "Our preliminary fourth quarter
results show that our actions in the U.S. retail channel to improve the USB
flash business appear to be succeeding. In addition, we are seeing solid
performance in most products and regions. We are particularly pleased with the
contributions from the recent TDK Recording Media Business and Memcorp
acquisitions. We are encouraged by these preliminary results and expect to
report earnings above the range we previously provided prior to the impact
from any charges."

"We remain committed to implementing our strategy of transforming Imation
to a brand and product management company while at the same time focusing on
operational improvements. We believe our strong fourth quarter performance
demonstrates the strength of our brands, our global reach and the value of our
acquisitions," Russomanno concluded.

The Company is scheduled to report fourth quarter results and also intends
to issue its 2008 outlook on January 30th.

Imation Corp.