Concord Camera Corp. and KB Gear Interactive, Inc. Announce Still Digital Camera Alliance.

Business Editors

HOLLYWOOD, Fla. and MINNEAPOLIS--(BUSINESS WIRE)--May 1, 2000

Concord Camera Corp. ("Concord") (NASDAQ: LENS) and KB Gear Interactive, Inc. ("KB Gear") today announced an alliance for the development, design and manufacture of KB Gear's next generation, entry-level still digital camera, the JamCam 3.0(TM). The JamCam 3.0 was co-developed by Concord and KB Gear and the supply of this product to KB Gear will be made by Concord as an original equipment manufacturer ("OEM"). This alliance combines Concord's development, design and manufacturing expertise with KB Gear's strengths in development, marketing and sales of internet communications products suitable for all ages.

The JamCam 3.0 will be exclusively manufactured by Concord for KB Gear at Concord's ISO 9002 certified manufacturing facility located in the People's Republic of China. According to International Data Corporation, the JamCam 2.0 was the best selling digital camera in the $89 to $249 segment last year. KB Gear anticipates having the JamCam 3.0 in stores in the U.S. and Canada by August of this year at a suggested retail price of $99. The camera will feature a 640 x 480 true VGA resolution sensor provided by Agilent Technologies, Inc. This highly integrated CMOS active pixel sensor offers excellent image quality with low power consumption, low dark current, high sensitivity and anti-blooming characteristics - in other words, better pictures. Agilent Technologies, Inc., (formerly part of Hewlett-Packard Company), is the world's leading designer, developer, manufacturer and provider of communications components as well as electronic and optical test, measurement and monitoring instruments, systems and solutions. The camera also comes with KB Gear's PhotoSharp, a photo enhancement software that allows users to take digital photos with the JamCam 3.0 that rival the quality of pictures taken with significantly more expensive digital cameras.

Commenting on the news, Ira B. Lampert, Chairman, Chief Executive Officer and President of Concord said, "Concord and KB Gear's new alliance to design, develop and manufacture the JamCam 3.0 successfully demonstrates to the marketplace Concord's position as a premier digital camera OEM and KB Gear's product development and marketing prowess. Our Company's strategy of focusing on the design, development and manufacturing excellence of traditional film based cameras continues to reap dividends; and that excellence has carried us into digital imaging and technologies. Concord is well positioned to leverage its expertise in this fast emerging segment of the industry." KB Gear CEO and Chairman, Dave Dorn, stated, "Combining our strengths in product development, marketing and sales of interactive communication accessories for "teens and tweens" with Concord's vast expertise will allow us to build this year's best-valued entry-level digital camera."

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). A licensing agreement with the world famous Crayola(R) brand name begun in the United States in 1995 has been expanded to include Canada, the United Kingdom, France, Australia and New Zealand. 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 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, France and through independent sales agents.

JamCam 3.0 is one of four products in KB Gear's new "Jam" line. The new line dramatically expands and enhances ways to get connected online. Other products in the line include: Jam-P3, an MP3 player that delivers top-quality sound for under $100; Jam-It, a digital sound lab that fits in the palm of your hand; and Jam Studio, a web graphics tool kit that contains a graphics tablet and easy-to-use software to create great web pages and graphics.

Minneapolis-based KB Gear Interactive is the developer of award-winning computer products suitable for all ages. Its proprietary "Jam" brand is geared for teens and tweens. Its products created with Disney and Little Tikes are made for younger computer trekkers. During 1999, KB Gear's products were sold in more than 14,000 retail storefronts and extensively online. KB Gear is a privately held company, headquartered at 10250 Valley View Road, Eden Prairie, Minnesota 55344. Product information is available by calling [phone] or on the company's website, www.kbgear.com.

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 3, 1999 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.