IMATION Selected As Name of New 3M Data Storage and Imaging Company

ST. PAUL, Minn. (April 16, 1996) -- 3M today announced that IMATION
(http://www.imation.com) will be the name of the independent new, publicly
owned data storage and imaging company it will launch in July.

IMATION CORP. will have sales of $2.25 billion, based on 1995 revenues of
the businesses involved in the divestiture. These businesses include 3M's
data storage, medical imaging and photo products, printing and publishing
systems, and its hardgoods and electronics service and support
organization.

Developed through a comprehensive process that included input from
employees and customers worldwide, the name IMATION is based on the Latin
words informare, meaning information, and imaginari or imagination.

To help support the transition, IMATION'S logo and product packaging will
temporarily carry the tagline "BORNE OF 3M INNOVATION." The phrase conveys
that while IMATION is creating something new, it carries forth 3Ms
tradition of innovation, while applying that legacy to shape a new,
independent business. The phrase will be phased out when benchmark
awareness levels are achieved and the company begins to establish a
separate identity.

"To invent a name that reflects who and what we are as a company, we took
our core businesses -- information and imaging -- and combined them with
our central values -- innovation and imagination -- and created IMATION,"
said William T. (Bill) Monahan, chief executive officer of IMATION.

IMATION'S logo -- a hand waving a wand that trails magical dust from its
tip -- emphasizes the company's focus on creating imaginative customer
solutions. The hand emphasizes the entrepreneurial role employees will
play in working closely with customers to create innovative products and
services that solve problems and meet needs.

The new identity also signifies the new company's commitment to a vision
based on increased customer focus, technological innovation and
organizational flexibility.

"The primary objective is to change our company from a product developer to
a customer solution enterprise that aligns all of our resources with the
specific needs of customers," Monahan said.

"To achieve this, we will accelerate decision making, closely integrate our
existing businesses, and forge strategic alliances with software,
hardware, networking and service partners," he said. "These changes will
enhance and expand our short-term prospects while creating the foundation
for new market opportunities."

In November 1995, 3M announced plans to launch its data storage and imaging
businesses as an independent, publicly owned company by July 1996. L.D.
DeSimone, 3M chairman and chief executive officer, said, "We are convinced
that, as independent enterprises, 3M and the new company both will be
better positioned for profitable growth. They will serve customers better,
provide greater opportunities for employees and increase shareholder
value."

NAME REPRESENTS BUSINESSES, VALUES

The name IMATION represents the new company's position as a global leader
and captures the essence of its core businesses -- information and
imaging. IMATION also refers to the companys core values of imagination
and innovation.

Building on its 3M heritage, IMATION will feature a tagline: "BORNE OF 3M
INNOVATION", which conveys the philosophy and vision behind the new
company.

According to Monahan, IMATION'S mission is to become the best source of
information and imaging solutions for customers seeking tailored products
and systems for their information needs. To this end, the company will
develop and provide solutions that include products, services and systems
for the handling, storage, transmission and use of information.

As a separate company, IMATION will be better positioned to grow its
existing business base within the $18-plus billion imaging and storage
industries, Monahan added. Worldwide expansion is another avenue of
expected growth, with projections to increase IMATION'S non-U.S. business
from 50 percent to 65 percent of its total revenues within the next few
years.

A NEW BUSINESS MODEL

"The needs of information users in a wide range of industries are changing
rapidly and demand a more collaborative relationship between the customer
and manufacturer," Monahan said. "IMATION will create imaging and
information solutions by working closely with customers to fulfill
specific needs and business applications."

To achieve this, IMATION has begun a comprehensive re-engineering process,
which is expected to continue for the next 18 months.

According to Monahan, this process will break down barriers between
business units, link the company's development teams more closely with
customers and make IMATION an attractive strategic ally to a wide range of
external partners.

Previously, the businesses that will make up IMATION functioned as
relatively independent units separated by unique technologies and
well-defined markets and distribution channels.

According to Monahan, these distinctions are blurring as the once- separate
tasks of creating, manipulating, processing, viewing, transmitting and
storing hard-copy outputs are being melded together into one digital
format. Streamlining its organizational structure will increase IMATION'S
flexibility and result in new market opportunities from shared
technologies and solutions.

Through co-development and marketing alliances and strategic acquisitions,
IMATION will be able to deliver the best possible solutions to the market
more rapidly, allowing the company to be a lean, focused and flexible
commercial partner. "We're going to form partnerships with companies that
can help us quickly deliver a total solution to our customers," Monahan
said. "This fundamental change will create many benefits for customers and
shareholders."

Monahan cited several recent successful partnerships, including:

 the development of integrated medical diagnostic imaging applications
 in conjunction with Hewlett-Packard and Cemax ICOM;

 the collaboration with Compaq and Matsushita-Kotobuki Electronics
 Industries, Ltd. to develop and launch the new 3M LS-120 Diskette
 technology;

 a group of 10 world-leading tape drive manufacturers licensed
 by the Data Storage Products unit to develop minicartridge drives
 based on 3M's Travan technology;

 the successful 3M Rainbow Color Proofing product line, which joins
 IMATION'S 3M Matchprint Color Proofing technology with Adobe's
 PostScript RIP and Mitsubishi Electrics print engine.

CHANGES UNDER WAY

A number of strategies have been put into place in the months since 3M
announced the planned spin-off.

In February, a voluntary separation package was offered to many employees
of the business units that will make up IMATION. The move will reduce
operating costs and increase profitability as IMATION prepares for formal
separation from 3M.

In addition, IMATION'S Data Storage Products unit has been reorganized
along user segments to ensure closer synergy between the company and its
customers. Business teams have been designed around customer segments with
distinctly different needs -- PC users, mid-range or network users, and
the enterprise segment or "high-end". The organization's previous
structure was based on specific product and technology development
programs.

The Medical Imaging Systems and Photo Color Systems units also have merged.
Although serving two distinct markets -- hospitals and health care
providers and the amateur photographer, respectively -- IMATION recognized
that its silver halide technologies are the backbone of both businesses,
which also share development and manufacturing facilities.

Based in Oakdale, Minn., IMATION will have a presence in more than 60
countries when launched. The business units that will make up IMATION
employ about 12,300 people. Details about specific staffing levels will be
announced nearer the time of divestiture.
 
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