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Imation Closes Memcorp Purchase

7/10/2007 08:46:00 AM Eastern

Oakdale, Minn. — Imation today completed the previously announced acquisition of the assets of Memcorp and Memcorp Asia Ltd. from privately held Hopper Radio of Florida.

The purchase price was $27.3 million in cash and $37.5 million in three-year notes, plus a potential earn-out of up to $20 million over three years, dependent on financial performance of the purchased business. Imation also expects to invest approximately $15 million in additional working capital after the acquisition closes.

“This is an important acquisition for Imation as we implement our strategy to become a brand and product management company,” said Frank Russomanno, Imation president/CEO. “Bringing the assets of Memcorp into Imation builds on our recent successful acquisition of the Memorex brand and enables us to extend the Memorex brand further into select consumer electronics and accessories.”

Ronald Zinke, VP of Imation’s consumer division for the Americas, will provide leadership for the Memcorp organization, which includes sourcing, marketing and distribution operations. Approximately 60 Memcorp employees from its U.S. and Hong Kong operations are expected to transfer to Imation.

Imation expects the transaction to be financially accretive, contributing $10 million to $12 million in operating income, and adding approximately $200 million in annual revenue in the first full year of operation.