1014111--2/29/2008--IMATION

related topics

{product, market, service}

{customer, product, revenue}

{acquisition, growth, future}

{property, intellectual, protect}

{operation, international, foreign}

{cost, operation, labor}

{personnel, key, retain}

{tax, income, asset}

{financial, litigation, operation}

{condition, economic, financial}

{product, candidate, development}

If we do not achieve the expected benefit from TDK Recording Media, Memcorp and other potential future acquisitions, our financial results may be negatively impacted. If we do not successfully manage the Memorex brand, our financial results may be negatively impacted. If we do not successfully manage our multiple brands on a global basis, it could have a material impact on our financial results. Our financial success depends in part on our ability to grow our business in the consumer electronics market. If we do not achieve the expected benefits from our joint venture with MBI as well as other strategic relationships, our financial results may be negatively impacted. If we do not successfully implement our global manufacturing strategy for magnetic data storage products and changes to the Research and Development organization and realize the benefits expected from the restructuring, our financial results may be affected. We must make strategic decisions from time to time as to the products and technologies in which we invest and if we choose the wrong product or technology, our financial results could be adversely impacted. Unfavorable economic conditions could negatively affect our revenues and profitability. Because of the rapid technology changes in our industry, we may not be able to compete if we cannot quickly develop, source and introduce differentiating and innovative products. Since price competition is a common factor in both the removable data storage media and consumer electronics markets, we risk reducing profitability if we cannot reduce costs and manage inventory in line with price declines. We may be dependent on third parties for new product introductions or technologies in order to introduce our own new products. Our financial success depends upon our ability to manufacture, source and deliver products to our customers at acceptable quality, volume and cost levels. If we cannot obtain finished products, raw materials or critical components at projected costs, we may not be able to maintain expected levels of profitability. A material change in customer relationships or in customer demand for products could have a significant impact on our business. Our financial results may be affected by the political climate and laws in the countries in which we do business and by fluctuations in world financial markets. Our success depends in part on our ability to obtain and protect our intellectual property rights, including the TDK Life on Record and Memorex brands, and to defend ourselves against intellectual property infringement claims of others, including the Philips patent cross- If we are unable to attract and retain employees and key talent, we may incur a material adverse impact on our business and financial results. Significant litigation matters could result in large costs and distraction to our business. An impairment in the carrying value of goodwill or other assets could negatively affect our consolidated results of operations and net worth.

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1014111--2/29/2008--IMATION_CORP