Global economic conditions have impacted our business more than we expected

Continued global economic and industry softness has resulted in asignificant sales shortfall from internal projections across both commercial andconsumer product lines. "Global economic conditions have impacted our business more than we expected. Inaddition, the industry softness we have been seeing throughout the year hascontinued to negatively impact our results," said Imation President and CEOFrank Russomanno. While results are not finalized, the Company is likely to report revenue in therange of $530 million to $540 million for the fourth quarter. Driven by theserevenue levels and margin pressures, the Company clearly will not meet its priorearnings outlook and could report a fourth quarter operating loss of up to $7million before restructuring and other charges.

In addition, the Company iscurrently finalizing its impairment testing on intangible assets includinggoodwill and it is likely that substantial impairments will be identified andrecorded in the fourth quarter of 2008 Final results are scheduled to bereleased on January 22nd. (See details below.) On October 21, 2008, Imation issued an outlook for the fourth quarter forrevenue between $560 million and $580 million, operating income between $7million and $14 million, and earnings per share between $0.11 and $0.23, priorto any restructuring charges. "We are continuing the cost reduction actions announced last quarter as weaccelerate our transformation of the Companys business model. We remain focusedon implementing our strategy of creating a brand and product management companyin both commercial and consumer markets across data storage media, audio/videoconsumer electronics products, and accessories," Russomanno concluded Imation Corp. is scheduled to release the Companys fourth quarter 2008financial results on Thursday, January 22, 2009 at 6:00 AM Central Standard Time(CST). A teleconference for the financial community and a live webcast arescheduled to begin at 9:00 AM CST. The live webcast of the teleconference will be available on the Internet at or A replay of this webcast will beavailable at either of these websites through Thursday, January 29, 2009.

Ataped replay of the teleconference will be available beginning at 1:00 PM CST,January 22, 2009 until 5:00 PM CST January 29, 2009 by dialing 866-837-8032(access 54448). All remarks made during the teleconference will be current at the time of thecall and the replay will not be updated to reflect any subsequent materialdevelopments. About Imation Corp.Imation is a leading global developer and marketer of branded offerings thatenable people to capture, save and enjoy digital information. Our world-classportfolio of digital storage products, audio and video electronics, andaccessories reaches customers through a powerful global distribution network.Our goal is a company with strong commercial and consumer businesses andcontinued long-term growth and profitability that creates shareholder value.Imation Corp.s global brand portfolio, in addition to the Imation brand,includes the Memorex brand, one of the most widely recognized names in theconsumer electronics industry, famous for the slogan, "Is it live or is itMemorex" and the XtremeMac brand. Imation is also the exclusive licensee of theTDK Life on Record brand, one of the worlds leading recording media brands.Additional information about Imation is available at http:// Risk and UncertaintiesCertain information contained in this press release which does not relate tohistorical information may be deemed to constitute forward-looking statementswithin the meaning of the Private Securities Litigation Reform Act of 1995. Suchstatements are subject to certain risks and uncertainties that could cause ouractual results in the future to differ materially from our historical resultsand those presently anticipated or projected. We wish to caution investors notto place undue reliance on any such forward-looking statements.