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APPLIED GRAPHICS TECHNOLOGIES ESTABLISHES A NEW DIGITAL IMAGING DIVISION TAKING STATE-OF-THE-ART PHOTO CD TECHNOLOGY TO THE MARKETPLACE

 NEW YORK, June 3 /PRNewswire/ -- Fred Drasner, chairman and chief executive officer of Applied Graphics Technologies (AGT), announced today the formation of a new Digital Imaging Division of AGT. The establishment of this new division positions AGT to lead the digital revolution that is changing the way the publishing industry does business.
 "AGT has always been on the cutting edge of new technology and with the establishment of the Digital Imaging Division, we intend to lead the digital revolution that is changing the way AGT and its customers do business," said Drasner.
 The Digital Imaging Division will develop and market computer-based digital imaging products for the prepress, graphic arts and multimedia publishing industries and for other markets where state-of-the-art image storage, manipulation and retrieval is essential.
 The new division will be headed by Scott Brownstein, a chief technical architect for the Photo CD system at Eastman Kodak (NYSE: EK). He will be joined by former Kodak managers, Georgia McCabe as senior vice president of marketing and business development, and Surinder Dahiya as senior vice president for product development and advanced technology. As worldwide director of commercial CD-imaging for Kodak, McCabe managed new business initiatives for the commercial launch of Photo CD. Dahiya, formerly director of CD authoring for CD imaging at Kodak, was a member of the development team responsible for designing and implementing the Photo CD format, as well as the Photo CD Authoring System.
 "The new division will be staffed by world-class business and technical talent in the Photo CD arena for the commercial marketplace. Their talents will now be brought to bear on image management solutions for our present customer base and for new markets where we identify emerging opportunities. We have worked closely with Kodak in the area of commercial applications for Photo CD, and we intend to continue our close collaboration with Kodak," said Drasner.
 "We believe our goal at Kodak of establishing Photo CD as the high- quality digital imaging standard is largely accomplished," said Brownstein. "Now we are looking forward to extending the reach and acceptance of Photo CD by focusing our efforts on applying the technology in new, vertical markets to create integrated solutions that serve the needs of our customers," he added.


"This will be achieved not only through redefining the way we prepare information in the graphic arts and prepress world, but also will involve how we deliver content, by providing tools for new media publishing."
 The new division will report to Peter Faucetta, president and chief operating officer of AGT and the management team will also include AGT's Murray Oles, vice president-technical sales, and John Hafey, vice- president-systems applications. In addition, several other members of the Photo CD team will join the new venture. The new division will be headquartered in Rochester, N.Y., with offices in New York City and Boulder, Colo.
 Today, desktop computers and imaging peripherals, such as scanners and printers, play a large role in the design, layout and proofing process. Beyond that, their utility in the graphic arts has been limited, primarily because desktop technology has not been able to match the quality provided by traditional systems. Photo CD is rapidly emerging as a standard in high-end publishing markets because it can store full quality film originated images in a convenient digital form, with significant cost advantages over traditional systems and no loss in quality. In addition, the unique properties of the Photo CD format make it well-suited to support new media publishing requirements, both as a source of images and as a universal cross-platform distribution standard.
 Applied Graphics Technologies is one of the largest prepress companies in the world and is the largest facilities management supplier to the publishing and advertising industries in the United States. Its customers include McGraw Hill, Time Warner, Newsweek, Conde-Nast, U.S. News & World Report, the New York Daily News and worldwide advertising agencies such as Ogilvy & Mather, McCann-Erickson, Campbell Ewald, Lintas and Saatchi and Saatchi. AGT has annual sales of approximately $200 million and employs over 1,200 people at 12 locations in California, Illinois, Michigan, New Jersey, New York and Washington, D.C.
 -0- 6/3/93
 /CONTACT: Sherry Rollins, 202-955-2680, or Maureen Beirne, 212-627-4111, both for Applied Graphics Technologies/
 (EK)


CO: Applied Graphics Technologies; Eastman Kodak ST: New York IN: CPR PUB SU:

DC-KD -- DC021 -- 5029 06/03/93 13:35 EDT
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Date:Jun 3, 1993
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