Concord Camera Corp. and Hewlett-Packard Company Enter Into Licensing Agreement for Digital Image Capture and Image Enhancement Technology.

Business/Technology Editors

HOLLYWOOD, Fla.--(BUSINESS WIRE)--Sept. 7, 2000

Concord Camera Corp. ("Concord") (NASDAQ:LENS) today announced that it has signed a definitive agreement with Hewlett-Packard Company ("Hewlett-Packard") (NYSE:HWP) regarding the licensing and use of Hewlett-Packard intellectual property and technology relating to digital imaging. As part of the agreement, Concord obtained rights to certain Hewlett-Packard digital image acquisition and image enhancement technology for its product lines of digital cameras that have up to 1.3 megapixel resolution. The agreement also gives Concord exclusive rights to use certain intellectual property jointly developed between Concord and Hewlett-Packard in all of Concord's digital products, including digital cameras and other image acquisition and transmission devices.

This agreement marks the first time that Concord and Hewlett-Packard have entered into a licensing agreement, which was the result of several years of joint product development. The licensed technologies involve hardware, software and certain processes that allow for images to be acquired digitally and then enhanced.

Commenting on the news, Ira B. Lampert, Chairman, Chief Executive Officer and President of Concord said, "We expect digital products to become a more significant part of our business and are pleased to have use of these technologies which we believe will add great value to our digital products. Concord's accomplishments and experience as a successful original equipment manufacturer ("OEM") producing innovative high quality, low cost traditional film-based cameras for the marketplace have laid the groundwork which will enable us to have similar successes in developing, designing and producing digital image acquisition and transmission devices and products. We look forward to satisfying the market's demand for digital products with the introduction and sale of the digital cameras incorporating the licensed technology and other digital products expected to be released during fiscal year 2001."

Concord Camera Corp. is a global developer, designer, manufacturer and marketer of high quality, low cost, digital, instant, Advanced Photo System (APS), 35mm and 110mm format cameras and 35mm, APS, and instant format single-use cameras. Concord markets its cameras under the tradenames CONCORD(R), KEYSTONE(R), GOLDLINE(R), LE CLIC(R), APEX(R) and ARGUS(R). Today, Concord is one of the world's leaders in the single-use camera category, the fastest growing segment of the camera market, and the largest producer of single-use cameras in the world in the private label, corporate premium and original equipment manufacturer segments of the industry. The Company sells and markets its camera products worldwide through direct sales offices in the United States, Canada, Germany, Hong Kong, United Kingdom and France and through independent sales agents. The Company manufactures its products in its expansive, vertically integrated manufacturing facilities in the Peoples Republic of China, which include a class 10,000 "clean room" digital technology manufacturing and assembly facility. Concord employs in excess of 6,000 people worldwide in seven (7) countries. Concord's fiscal year 2000 revenue was approximately $173 million.

This press release contains forward-looking statements that involve numerous risks and uncertainties. The Company's actual results could differ materially from those anticipated in such forward-looking statements as a result of certain factors, including those set forth in the Company's filings with the Securities & Exchange Commission, some of which are summarized under the caption "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended July 1, 2000 and updated in subsequently filed reports. In particular, expected sales increases could be adversely affected by production difficulties or economic conditions adversely affecting the market for the Company's products.