Imation Takes Over TDK Recordable Media

April 23, 2007: In a US$300 million deal, Imation and TDK have announced that they have reached an agreement for Imation to acquire the recordable media specialist.

Made up of a combination of common stock and cash with a potential future payment of US$70 million depending on performance, the deal will see TDK retain its R&D, manufacturing and OEM business while Imation takes over its recordable media business and brand.

All up, TDK will receive US$280 million in Imation stock, making it the single largest shareholder. Imation will then take over TDK’s current and future recording media product line including magnetic tape, optical media, flash media and accessories.

TDK will also gain the right to nominate a representative to serve on Imation’s Board of Directors.

“With this transaction Imation expands our portfolio of brands and builds on our four pillars of storage,” says Frank Russomanno, Imation President and CEO. “Imation is bringing the well known TDK brand into our growing portfolio of strong consumer brands as well as adding the highly respected TDK brand recording media products to our commercial and consumer product portfolio.”

The transaction is expected to close in the third calendar quarter of 2007.

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