News Release

Company Focused on High Growth Categories of Secure and Scalable Storage

OAKDALE, Minn.--(BUSINESS WIRE)--Feb. 28, 2012-- Imation Corp. (NYSE: IMN), hosted an analyst and investor day in New York this morning, Feb. 28, 2012. Titled “Strategic Transformation: Investing for Growth,” the purpose of the event was to provide an in-depth look at the company’s technology evolution, acquisition philosophy, current and planned new products, improving gross margins, and global reach and capabilities.

According to President and CEO Mark Lucas, “We are leveraging Imation’s deep core and leadership positions in data storage while building a platform for growth in Secure and Scalable Storage and in Audio and Video Information products. We have reskilled our global workforce to capitalize on the opportunities we face and are well-positioned to execute on our strategy.”

Lucas and several members of Imation’s executive team discussed how organic investments, combined with the five acquisitions Imation made in 2011, are building a platform to launch new, differentiated products that carry higher gross margins. The analyst day session featured formal presentations as well as product demonstrations of how Imation’s offerings can help customers protect their escalating amount of unsecured data to guard against costly, serious security breaches.

As part of management’s presentation, the Company reiterated that it expects to return to growth as it exits 2012 and enters 2013. Gross margins this year are expected to move toward 20 percent, up from 17.5 percent in 2011. Operating income for the year should be about flat with 2011’s breakeven level, excluding charges. Longer term, Imation is targeting gross margins to exceed 20 percent, with a goal of operating income in the 4 percent to 5 percent range.

In addition to Lucas, the presenters included:

• Ian Williams, Vice President of Global Product Management and Marketing
• Subodh Kulkarni, Chief Technology Officer
• Greg Bosler, Senior Vice President of Global Business
• Paul Zeller, Chief Financial Officer

About Imation Corp.
Imation (NYSE: IMN) is a global scalable storage and data security company. The Company's portfolio includes tiered storage and security offerings for business and products designed to manage audio and video information in the home. Imation reaches customers in more than 100 countries through a powerful global distribution network and well recognized brands. Additional information about Imation is available at www.imation.com.

Risk and Uncertainties

Certain information contained in this press release which does not relate to historical information may be deemed to constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties that could cause our actual results in the future to differ materially from our historical results and those presently anticipated or projected. We wish to caution investors not to place undue reliance on any such forward-looking statements. Any forward-looking statements speak only as of the date on which such statements are made, and we undertake no obligation to update such statements to reflect events or circumstances arising after such date. Risk factors include our ability to successfully implement our strategy; our ability to grow our business in new products with profitable margins and the rate of revenue decline for certain existing products; the ready availability and price of energy and key raw materials or critical components; our ability to pass along raw materials price increases to our customers; changes in European law or practice related to the imposition or collectability of optical levies; our potential dependence on third parties for new product introductions or technologies in order to introduce our own new products; our ability to introduce new offerings in a timely manner, OEMs and other third parties and the market acceptance of newly introduced product and service offerings; continuing uncertainty in global and regional economic conditions; our ability to identify, integrate and realize the expected benefits from any acquisition which may occur in connection with our strategy; our ability to realize the benefits from our global sourcing and development strategy for magnetic data storage products and the related restructuring; the volatility of the markets in which we operate; foreign currency fluctuations; our ability to source and deliver products to our customers at acceptable quality, volume and cost levels; significant changes in discount rates and other assumptions used in the valuation of our pension plans; changes in tax laws, regulations and results of inspections by various tax authorities; our ability to meet our revenue growth, gross margin and earnings targets; our ability to secure adequate supply of certain high demand products at acceptable prices; changes in the supply and cost of raw materials and key components of our products resulting from the effects of natural disasters including the October 2011 flooding in Thailand; our ability to efficiently source, warehouse and distribute our products globally; a material change in customer relationships or in customer demand for products; the future financial and operating performance of major customers and industries served; our ability to successfully defend our intellectual property rights and the ability or willingness of our suppliers to provide adequate protection against third party intellectual property or product liability claims; the possibility that our long-lived assets for any goodwill that we acquire in the future may become impaired; the outcome of any pending or future litigation; and the volatility of our stock price due to our results or market trends, as well as various factors set forth from time to time in our filings with the Securities and Exchange Commission.

Imation and the Imation logo are trademarks of Imation Corp. and its subsidiaries. All other trademarks are property of their respective owners.

Source: Imation Corp.

Imation Corp.
Media:
Mary Rawlings-Taylor, 651-704-6796
mjrawlings-taylor@imation.com
or
Investors:
Scott Robinson, 651-704-5159
srobinson@imation.com