Court Confirms Imation's Right to Sell Black Watch Digital Linear Tape IV; Imation Reasserts Federal Antitrust Claim Against Quantum.

Business Editors & Technology Writers

OAKDALE, Minn.--(BUSINESS WIRE)--Oct. 30, 2001

Imation Corp. (NYSE:IMN) welcomed today's ruling in California Superior Court, denying a bid by Quantum Corp. (NYSE:DSS) to block Imation from selling Black Watch(TM) Digital Linear Tape IV cartridges.

"The Court sided with Imation that we are entitled to be in the digital linear tape market by denying Quantum's bid to exclude us. Customers and the marketplace won a victory today, along with Imation. We will continue to offer customers Imation certified and manufactured Black Watch(TM) Digital Linear Tape IV," said Frank Russomanno, vice president of Data Storage Media and Services for Imation. "Today's decision has no impact on Imation's federal antitrust claims against Quantum. We initiated our actions because Quantum is illegally attempting to keep Imation out of the market, not because of royalty payments. We understand the Court's preliminary decision to preserve the status quo until this matter is resolved. In addition, the Court's requirement that Imation pay the 30% royalty during the interim is recognition of Quantum's dependence on their unusually high royalty structure. This is the motivation for their illegal price fixing scheme and desperate attempts to keep Imation out of the market, as outlined in Imation's federal antitrust suit against Quantum. In their most recently reported quarter, Quantum reported royalty income of $50 million and pro-forma net income of $10 million. Clearly, their business model is completely dependent on the DLT royalty structure they are desperately attempting to preserve. Unfortunately, this results in higher prices to end user customers," concluded Russomanno.

Imation will continue to pursue its federal antitrust claim against Quantum filed in Minnesota on Oct. 1, 2001, specifically charging that Quantum has conspired to fix prices and monopolize the market for DLT compatible tape in violation of the Sherman Antitrust Act. Imation seeks an injunction, barring Quantum from future violations of antitrust law and seeks a minimum of $150 million in damages, which would be trebled to $450 million under antitrust law.

"Imation looks forward to presenting this full antitrust case in federal court and is confident it will win on the antitrust charges," said John Sullivan, Imation vice president and general counsel. "Today's decision is the result of a diversion by Quantum from the real issue raised by Imation: Quantum's illegal behavior in the marketplace. Any subsequent legal maneuvers by Quantum are obviously nothing more than desperate attempts to shut down competition. Recent attempts to frighten or intimidate our customers and distributors through misleading advertising and marketing claims are simply further attempts to protect their price fixing scheme. This ruling reinforces that the market for tape cartridges compatible with DLT drives must remain fair and open," concluded Sullivan.

"The positive market reaction to Imation-manufactured Black Watch Digital Linear Tape underscores customer trust in Imation-certified products bearing the Black Watch trademark. We have a growing number of end user customers, distributors, and resellers who recognize the quality performance of our product, and our 50-year history as a trusted developer, manufacturer and marketer of high quality data storage tape. In fact, customers prefer the low abrasivity and high durability that Imation Black Watch Digital Linear Tape delivers. Customers have been delighted to have a cost-competitive choice with Imation-certified quality. Demand has exceeded supply in the few weeks since introduction," Russomanno stated.

About Imation

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 $867 million in 2000.

As of September 30, 2001, Imation employed approximately 4,100 people worldwide. The Company has sales in over 60 countries with international revenues contributing approximately 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 and the Imation logo are trademarks of Imation Corp. All other trademarks are the property of their respective owners.