Imation Suspends Cash Dividend

OAKDALE, Minn. -- Imation Corp. (NYSE:IMN) today announced that the Board of Directors suspended the Companys quarterly cash dividend. The cash dividend suspension will preserve approximately $3 million of capital per quarter. The Company’s cash balance was $96.6 million with no debt outstanding as of December 31, 2008.

Commenting on the suspension, Imation President and CEO Frank Russomanno said, “The economic impact we experienced in the fourth quarter was more severe than we had anticipated and we are approaching 2009 cautiously given the uncertainty about the breadth and depth of the economic downturn. Preserving cash will further strengthen the Company’s balance sheet as we continue to invest in our transformation to a brand and product management company. We believe suspending the dividend is in the long term interest of the Company and our shareholders, and we are confident it is the prudent step to take at this time.”

Imation Corp.