The Value is in the Data

1. The Value is in the Data Imation Corp. Annual Meeting of Shareholders May 8, 2003 William Monahan Chairman and Chief Executive Officer

2. Risk Factors Certain information contained in this presentation which does not relate to historical financial information, including the 2002 Outlook and long-range goals, may be deemed to constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties that could cause the Company’s actual results in the future to differ materially from its historical results and those presently anticipated or projected. Among these factors are continuing uncertainty in global economic conditions that make it particularly difficult to predict product demand, the Company’s ability to meet its cost reduction and revenue growth targets, its ability to implement its restructuring programs for the estimated costs on a timely basis and to achieve the projected benefits, to introduce new offerings in a timely manner either independently or in association with OEMs or other third parties, the competitive pricing environment, foreign currency fluctuations, the outcome of litigation, the ability of Imation to secure adequate supply of certain high demand products, the ready availability and price of energy, the market acceptance of newly introduced product and service offerings, the rate of decline for certain existing products as well as various factors set forth in the Company’s filings with the Securities and Exchange Commission.

3. Imation Is…. • Leading worldwide supplier of removable data storage media with 50 years of experience • 2002 revenue $1.004 billion; $260 million in Q1’03 • 54% of revenue outside the U.S.; market presence in more than 60 countries • 2,800 employees globally • More than 300 technology scientists; more than 300 U.S. Technology patents • New York Stock Exchange ticker symbol “IMN” • Headquartered in Oakdale, Minnesota

4. Imation’s Vision … To be the recognized leader in the removable data storage media industry; the trusted source for digital storage of information important to consumers and businesses alike; and the independent experts in data storage back-up, archiving, security and protection.

5. Ethical Business Practices are a Top Priority • Our corporate reputation is considered our most valuable asset • Strong disclosure control procedures established • Meets all established requirements of Sarbanes Oxley/SEC & NYSE • All financials are supported by extensive internal representations • Independent Audit Committee has financial expertise • Imation’s Board has been strong and independent since spin-off • Business ethics apply to more than financial disclosure • Business Conduct Policy and Manual and an employee hotline established • Extensive leadership training conducted on enhancing ethical business culture • High ethical standards are required in all business relationships: • Fellow employees • Customers • Suppliers • Partners • Investors

6. Imation Corp. #39

7. The Value is in the Data • The data storage removable media market is an attractive sustainable growth market • 5–10% CAGR • Imation share ~16-18% • Imation is well positioned to grow profitably in this market • Strong technology base • Global presence • Broad portfolio 3. Experienced management team and data storage removable media focus create value for customers, employees and shareholders

8. Data Storage Removable Media Market is a Sustainable Growth Market Total Market - 2002 Imation - 2002 ~$6 Billion Market 4 Year CAGR ~5-10 % $1.004 Billion Revenue Market Share ~16-18% } Enterprise = ~$400 M; ~2-5% 4 Year CAGR B2B - tape cartridges Network/Server = ~$2.3 B; ~5-10% 4 Year CAGR B2C, B2B - diskette, optical Personal Storage = ~$3.2 B; ~6-12% 4 Year CAGR Source: Gartner/Dataquest, Forrester Research IDC, Imation estimates

9. Capacity, Levels of Automation and Transfer Rates Vary Across Applications and Products* Capacity starts at 1.44MB Greater Single Use of Media Transfer rate starts at ~ 12 Mb/sec Highest Capacity: ~200GB Greater Use of Tape Automation ~40 MB/sec peak transfer rate Mid-Range Network Personal Storage Entry-Level Network Enterprise-Class Server Applications Applications Server Applications Applications BlackWatch™ Ultrium, BlackWatch™ DLTtape, BlackWatch™SuperDLTtape Cartridges CD-R, CD-RW, DVD optical discs; 1.44 Mb diskettes, Devices/Accessories Travan™/Travan™ NS BlackWatch™ 9840, 9940; BlackWatch™ 3590, 3590E, 3480, 3490E; Royal Guard™ 3480 9490EE Tape Cartridges 4mm/8mm, SLR Tape Cartridges *Product capacities may vary based on compression rate.

10. Imation Reaches Customers in More Than 60 Countries; 54% of Revenue Comes From Outside the U.S. Regional Revenue Mix Q1 2003 U.S. Sales $126.8 Million OUS Sales $146.5 Million

11. Financial Milestones - 2002 • Revenue growth in Data Storage across all geographies and customer sectors • Data Storage revenue grew 14.6% and topped $1 billion in 2002, setting a record for this business • Earnings per Share of $0.58 for Q4 and $2.05 for the year • Cash reached a record $474.7 million; more than $13 per share

12. IMN Outperformed Peers and Benchmarks; Gained 62.2% in 2002;12th Best Performing U.S. Stock

13. First Quarter 2003 Highlights • Data Storage revenue increased 3.1% year-over-year to a record $260 million • Gross Margin of 31.9% • Record low SG&A spending at 15.2% of sales • Record operating income of $32.8 million • Earnings per share of $0.59 vs. $0.45 last year • Cash increased to $480.1 million

14. Debt/Cap % 34 30 29 7 3 2 2 4 4 3 4 4 2 2 2 2 2 2 1 1 1 Financial Condition is Strong A financial turnaround of nearly $1 billion has been achieved since Q1 1998 ($ millions) Debt Cash/Stock

15. Imation’s Business Model ProvidesSignificant Competitive Advantages • Removable media business provides annuity-like revenue stream due to large installed base of OEM drives • The only company focused solely on data storage media • Broadest portfolio of products in the industry • Strongest distribution channel position worldwide • Most extensive global presence • Strong balance sheet can support profitable growth • Strong and extensive OEM relationships • Only U.S. based manufacturer in the industry • Quality Improvement and Cost Reduction (QICR) focus and experience

16. Key Strategic Objectives10% Revenue Growth at 10% + O.I. • Increase Imation’s value and relevance to all our customers and partners • Drive technology development and leadership for competitive advantage • Quality improvement/cost reduction and total quality process management focus • Supply chain excellence globally • Talent development

17. Leverage Our Strong Financial Position to Achieve Profitable Growth and Shareholder Value • Launch new products/strengthen market share • Ultrium/LTO3 • DVD-R and DVD-RW • 9840C+ • Implement MBI JV to increase share of the optical market • Accelerate activity in new market opportunities • Government and security • China • Broadcast • Investigate adjacent opportunities • While we continue disciplined cost management for ROI

18. The Value is in the Data • The data storage removable media market is an attractive sustainable growth market • Imation is well positioned to grow profitably in this market 3. Experienced management team and data storage removable media focus create value for customers, employees and shareholders