Imation and ENCRYPTX Partner to Develop Secure Optical Media with EncryptDisc Technology

First recordable CD, DVD & Blu-ray media with built-in disc burning and FIPS 140-2 Level 1 Validated, AES 256-bit encryption; to be showcased at FOSE/GOVSEC 2010 tradeshow, March 23-25 in Washington D.C., in Cyber Security Pavilion, Booth 1135

OAKDALE, Minn. - March 22, 2010
Imation Corp. (NYSE: IMN), a global leader in data storage, today announced it has partnered with ENCRYPTX Corporation, a BeCompliant Company and a leader in data security and policy control and management for removable storage, to develop and market highly secure CD-R, DVD-R & Blu-ray optical media with EncryptDisc™ technology from ENCRYPTX. Under the agreement, the companies have incorporated the ENCRYPTX EncryptDisc AES 256-bit encryption and burning technology into a line of secure, printable optical media products from Imation. Imation and ENCRYPTX have also announced that they have selected OEM partners Compass Medical, North Central Sight Services, and Rocky Mountain RAM to customize and supply the discs for certain government, medical and other regulated markets.

"As the global leader in optical media with more than 50 years experience helping commercial users and government agencies to store and protect their critical data, Imation is excited to announce this important product development and marketing relationship with ENCRYPTX," said Keith Schwartz, director of strategic growth for Imation's global commercial business. "EncryptDisc technology addresses the needs of government, business, and medical users who require a highly secure way to transport, share, and archive sensitive data on optical media. It is another important offering in Imation's growing portfolio of secure storage products designed to help our customers more fully protect their critical storage assets and ensure compliance with increasingly stringent security and regulatory requirements."

"ENCRYPTX is pleased to have partnered with Imation, an industry leader in data storage, to create this highly secure line of optical products with EncryptDisc technology," said David Duncan, founder and president of ENCRYPTX Corporation. "While today's users are very familiar with creating and burning CDs and DVDs on computers, this familiarity has increased the possibility of data leaks and unprotected record sharing in corporate and government environments. With EncryptDisc technology's built-in burning and automatic encryption, organizations have full control over what is being recorded and by whom. Because the encryption used is FIPS 140-2 Level 1 validated, users are assured the content of the disc is in compliance with government encryption standards."

"EncryptDisc is being launched next week at the FOSE/GOVSEC tradeshow in Washington DC, March 23-25, in the Cyber Security Pavilion, Booth 1135. We have had exceptional interest in the product from numerous government agencies and look forward to demonstrating and providing EncryptDiscs to prospective government buyers."

Features of optical discs with EncryptDisc technology:

• Proven Imation CD-R and DVD-R media for performance and reliable long storage.
• Integrated encryption and burning application manufactured onto the disc. EncryptDisc uses highly secure, government-grade AES 256-bit encryption that is FIPS 140-2, Level 1 validated, NIST SP 800-57 compliant.
• Prevents users from writing files in the clear; files are automatically encrypted when being burned.
• Integrated password recovery and optional remote administrator password recovery service ensure authorized users can recover forgotten passwords securely and conveniently.
• Built-in password attack self-defeating mechanism prevents brute force attacks to crack the disc password.
• Discs can be left open to allow users to add new content or edit files and incrementally burn these changes through the EncryptDisc application, or finalized as a Read Only disc with decryption access.

An optional EncryptDisc Administrative Console, either hosted or installed, allows IT or Security Administrators to disable lost or stolen discs, recover passwords for users, and have full forensics audit tracking of disc content. Additional policies can enable in-network and out-of-network access, reauthorization intervals, strong passwords, and periodic password changes.

Availability

CD-Rs and DVD-Rs with EncryptDisc technology can be initially purchased through ENCRYPTX (www.encryptx.com) and the following partners:

• Compass Medical (www.compassmedical.co.uk), a UK-based Medical Systems Integrator
• Rocky Mountain RAM (www.ram-it.com), a US Government-approved (GSA Schedule #GS-35-0307N and DAR BPA/ESI SmartBuy Contract #FA8771-07-A-0302) supplier of secure removable storage media, flash drives, hard drives and encryption products
• North Central Sight Services (www.ncsight.org), a US National Institutes of the Blind sight impaired certified manufacturer of SKILCRAFT branded products.

About Imation Corp.
Imation is a leading global developer and marketer of branded products that enable people to capture, save and enjoy digital information. Our world-class portfolio of digital storage products, audio and video electronics and accessories reaches customers through a powerful global distribution network. Our goal is a company with strong commercial and consumer businesses and continued 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 the consumer electronics industry, famous for the slogan, Is it live or is it Memorex? and the XtremeMac brand. Imation is also the exclusive licensee of the TDK Life on Record brand, one of the world's leading recording media brands. Additional information about Imation is available at http://www.imation.com.

About ENCRYPTX
ENCRYPTX, a BeCompliant Company is a leader in encryption and security solutions for removable devices and removable media. ENCRYPTX removable device and media security products have been protecting consumers, enterprise and government devices and media since 1999. ENCRYPTX products are used commercially by thousands of corporate users including well known organizations such as IBM, General Dynamics, Sony Corporation, Boeing, KPMG, Science Applications International Corporation, and by numerous local, state and federal agencies and US Department of Defense organizations. ENCRYPTX removable media and drive security products have been bundled and sold by leading OEM manufacturers on over 20 million devices worldwide. www.encryptx.com.

Imation, the Imation logo, Memorex, the Memorex logo, Is it live or is it Memorex? and XtremeMac are trademarks of Imation Corp. and its subsidiaries. The TDK Life on Record logo is a trademark of TDK Corporation. All other trademarks are property of their respective owners.