Exabyte Selects Imation to Deliver Tape Drives Libraries and Media to Fast-Growing Latin America Market

"In November of 2003, Imation and Exabyte entered into an agreement that
established Imation as the exclusive worldwide distributor of Exabyte brand
media products. For investor relations inquiries, contact Kelly
Beavers at investor@exabyte. from the moment
they enter U.
"Latin American airlines already pay millions of dollars in U.

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We are thrilled to expand our
relationship with Imation by working together to serve the dynamic and growing
market in this region."
This agreement expands Exabyte's existing distribution channels to provide
more coverage in the region .com .

About Imation Corp.

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S.
AITAL, http://www. Its
member carriers have total revenue of more than $12 billion, operate
more than 550 aircraft and employ 65,000 workers in Mexico, Costa
Rica, Honduras, Guatemala, El Salvador, Nicaragua, Panama, Colombia,
Venezuela, Peru, Ecuador , Bolivia, Brazil, Argentina, Chile, Paraguay,
Uruguay and in other nations the airlines serve.

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For more information on Exabyte, its channel
partners, and its products, please visit http://www .

About VXA Packet Technology
Exabyte, the leading innovator in tape backup technologies since 1985, is
the only company to offer award-winning VXA Packet Technology.exabyte.imation. The Internal Revenue Service has begun
selectively targeting Latin American airlines in seven countries:
Brazil, Chile, Costa Rica, El Salvador, Guatemala, Peru, and Panama,
and advised that it would be targeting other carriers in the region,
AITAL said. The IRS is expected to go after international airlines in
other countries as it seeks to implement arcane discriminatory
regulations that go against bilateral treaties and other conventions
in place for many years, AITAL said.

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com . It would be as if international governments decided to tax
reporters' income for the time spent conducting regular assignments
during short visits to other countries," de Gunten said. Treasury; to the contrary it will decrease those
funds.

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The company's product suite is
ideally suited for SMB and departmental servers, workstations, LANs, and SANs,
providing dramatically higher capacity, speed and reliability at competitive
prices.S. The U.S.1% in 2004, compared to 27.S.

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Exabyte will resell its VXA and Magnum products through Imation's Latin
America organization, throughout Latin America, including Argentina, Bolivia,
Brazil, the countries of the Caribbean and Central America, Colombia, Chile,
Ecuador, Mexico, Paraguay, Peru, Uruguay and Venezuela. By leveraging Imation's more than 50 years of experience in removable
data storage, Imation's strong distribution channel and end-user customer base
in all countries of the region, we are well positioned to provide our
customers with the most suitable data storage protection solutions and service
within Latin America.

About Exabyte Corporation
Exabyte Corporation (OTC Bulletin Board: EXBT), now entering its 20th
year , is a recognized pioneer and leading innovator in tape storage.

gateway.
AITAL member airlines are as equally concerned about the
administrative burden of undertaking these audits as the potential
back taxes themselves. airspace and for how long,
and when they reported for work . There is no guarantee that records
needed to comply are even kept beyond a reasonable period.

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"
Imation is a leading developer and manufacturer of removable data storage
media, serving customers ' needs in more than 100 countries worldwide.
With award-winning VXA Packet Technology, patented ExaBotics (TM) and its
innovative engineering approach, Exabyte delivers new VXA(TM) and LTO(TM)
(Ultrium (TM)) products that consistently raise the bar for industry standards
in engineering, quality and data reliability.
For additional information, call 1-800-EXABYTE or visit
http://www. Additional information
about Imation is available on the company's website at
http://www.

Imation and the Imation logo are trademarks of Imation. government for seeking new taxes from Latin
American airlines and their employees that use U.S. airspace, and from the time they start preparing to
take a return flight home, AITAL said.

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VXA Packet drives and tapes offer scalable
capacity -- variable cartridge capacities that provide just the right capacity
for today's backup needs and the flexibility to scale for future data growth.imation. airspace on their
way to/from a U. government also has given no reason why it has only
targeted airlines from Latin America, and not airlines of other
regions of the world.S.

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exabyte.com .S."
"Why airlines and why Latin America? If the U. airlines have the majority
share of air service between the U. This is not what allied countries do to each
other .
"The administrative nightmare this imposes on Latin American
airlines is not just unacceptable and unjustified, but it is a
colossal waste of time and resources," said de Gunten. government continues to penalize its industry
and international airlines, including recent proposals to increase
security fees," de Gunten added.

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, Fujitsu Siemens, Apple, Imation, Bull,
Toshiba, Logitec, Kontron, Tech Data , Ingram Micro, CDW and Arrow Electronics.com . Any
reciprocal penalties would hurt U.S.S.

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,
Exabyte Corporation (OTC Bulletin Board: EXBT), a leading innovator in tape
backup, restore, and archival systems, and Imation Corp.com . With PerfectWrite and 4-level Reed-Solomon
Error Correction, VXA products are up to 180x more likely to restore your data
-- even from a damaged tape.
and subjects them to U.S. authorities are
targeting Latin American airlines, they should be ready for
significant and swift retaliatory measures by Latin American
governments," said Alex de Gunten, Executive Director of the Latin
American Airline Association (AITAL).9% for Latin carriers operating to
the U.

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taxes , fees, security costs, navigation payments and other fees that
fund the U.

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Exabyte, VXA and
ExaBotics are trademarks of Exabyte.
"The IRS has given no reason why airlines alone are being
targeted , and why cruise lines and other modes of transportation are
exempted. Airlines would be required to research more
than 100,000 individual time sheets over the last decade, try to
figure out when each employee was over U.S.

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Superior product reviews and adoption by major OEMs, including IBM, Apple and
Fujitsu Siemens, have established VXA Packet Technology as the new standard in
tape backup .
This targeted attack on Latin American airlines is aimed at pilots
and flight attendants of international airlines flying to the U.
"These actions must stop immediately, for the good of everyone
involved ," he said.

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Exabyte
will benefit from Imation's strong distribution capabilities and end-user
relationships .latinamerica.S.S.org, was founded in 1980 as a non-profit
organization and currently members 22 airlines in Latin America.

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Today's announcement marks another phase in the developing
relationship between our two companies and is another example of Imation's
commitment to deliver the broadest portfolio of removable data storage
products to end-users in Latin America," said Ron Hansen, Managing Director ,
Imation Latin America.
"Exabyte's VXA and Magnum products have garnered widespread acclaim in
product reviews and have been adopted by major OEMs, including IBM, Apple and
Fujitsu," said Steven Coleman, Business Development Manager, Exabyte
Corporation. Information about the Latin America region is
available at http://www.

IRS Targets Latin American Crews When Flying Over U.S. Airspace According to AITAL

S. budget deficits.
After this, Latin American airlines would have to assess taxes on
all different salary levels, including differing levels for each
person, since each employee would have received one or more pay raises
during the last decade.

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(NYSE: IMN), a
worldwide leader in removable data storage media, today announced they are
expanding their existing relationship to establish Imation as an authorized
reseller of Exabyte's VXA and Magnum (LTO(TM) Ultrium(TM)) drives , libraries
and media throughout the Latin America region. "This relationship leverages Imation's sales capabilities and
global customer reach to enhance the sales and promotion of Exabyte's drives ,
libraries and media products in the Latin America market, where Imation has a
long-established presence and customer base. Its
heritage comprises an impressive list of industry "firsts," including the
first manufacturer of tape drives to break the 1, 2, and 5 GB capacity
barriers, the first to introduce 8mm tape drives and libraries, the first to
offer native Fibre Channel drives and libraries , the first to offer FireWire
tape drives and libraries and the first and only manufacturer to offer VXA
Packet Technology, which enables its VXA Packet drives, autoloaders and tapes
to read and write data in packets like the Internet, allowing far superior
restore integrity, exceptional transfer speeds and scalable tape capacities. Exabyte has a worldwide network of OEMs, distributors and resellers
that share the company's commitment to innovation and customer service,
including IBM, HP, Fujitsu LTD. tax withholding and filing requirements for
salaries earned when they are on their way to the U.

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" The market share for U. transport industry.

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Imation to Provide Sales, Marketing, and Distribution Services for Exabyte's
VXA and Magnum Product Lines Throughout the Region

BOULDER, Colo. VXA
Packet drives and autoloaders deliver transfer speeds up to 43 GB per hour ,
allowing network administrators to backup 160 GB of data (equal to one VXA-2
tape) in less than four hours.S.S.

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"We see this expansion as further evidence of the
global strength of the partnership and customer demand for Exabyte's highly
reliable portfolio of innovative products, within a growing and modernizing
market. "U.S.

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Imation Corp (NYSE: IMN) is a leading developer, manufacturer and supplier
of magnetic and optical removable data storage media.

Business Editors/Aviation Writers/Travel Writers/Transportation
Writers

WASHINGTON----In a press conference
in Washington today, AITAL, the Latin American Airline Association,
deeply criticized the U.S. airlines operating to Latin America
was 72.

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The product offering
through Imation will include the full suite of award-winning VXA products,
including stand-alone VXA-2 Packet Drives and VXA PacketLoaders as well as
Exabyte's robust line of Magnum LTO libraries. All other trademarks are property of
their respective owners. and Latin America and pay much
higher salaries to their crew than Latin American carriers. airlines, pilots and flight
attendants even more."
"These regulations are being enforced on a selective,
discriminatory and arbitrary basis in an ill-advised attempt to offset
U.aital .

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, and OAKDALE, Minn. This
ground-breaking technology enables VXA Packet drives, autoloaders and tapes to
read and write data in packets just like the Internet, providing far superior
restore integrity, exceptional transfer speeds and scalable capacity.S. "The
consequences eventually could affect trade between nations and not add
one cent to the U. The industry continues to struggle
to recover and the U.