Data leaks occur when data storage managers, who increasingly face budget constraints, sell or give tape cartridges containing company data to a reseller who claims to erase or destroy the data. The reseller often "recertifies" the cartridges without fully erasing the data then sells them back into the market. In many cases, the data storage manager is unaware of this practice as it is these cartridges that often contain confidential company and customer data. Imation, the world's largest supplier of magnetic data storage tape, has determined through its testing that many tape cartridges, especially those with magnetic servo tracks, cannot in fact be completely wiped clean. With today's high-capacity cartridges, significant amounts of data may be left intact and exposed to unwanted breaches. A typical tape cartridge can store hundreds of gigabytes of data, with the most current high-end cartridges holding up to a terabyte of data. An estimated one million cartridges are "recertified" each year.

While the practice of reselling used tape was established to mitigate budget constraints, the costs associated with data breaches can far outweigh any savings. According to industry analysts and others who study the financial, security and reputation risks of data breaches, the cost to companies resulting from the failure to protect data is growing each year. In a 2006 report from the Ponemon Institute (2006 Annual Study: Cost of a Data Breach) the average cost to companies per lost customer record as a result of a data breach is $182. Multiply this by the thousands of individual records that may remain on improperly retired used data storage products, and the financial risk to these companies becomes apparent.

"Today's tape cartridges have storage capacities of 500 gigabytes or more. Even if 99.9 percent of data is erased from a tape, hundreds of megabytes of potentially sensitive data could remain on the tape. This could include thousands of customer names and social security numbers which in turn expose a company to millions of dollars in legal fees, credit monitoring costs and customer communications. It could also ruin a company's reputation, result in significant customer desertions and potentially expose it to regulatory penalties and costly lawsuits," Dr. Kulkarni added. "Companies that sell used tape aren't selling back just one tape cartridge; they're selling hundreds at a time and, as a result, are unknowingly gambling with their customers' security and their entire businesses. The modest financial benefits from selling used tape are not being weighed against this potentially catastrophic consequence."

According to the Privacy Rights Clearinghouse, as of early October 2008, more than 245 million personal records have been exposed as the result of data breaches in the last three years alone, and that number is on the rise. In addition, the Ponemon Institute study found that more than 90 percent of data breaches occur in digital form and the costs associated with data loss are rising into the billions of dollars each year.

Uncovering Data Leaks

In lab tests run on the 100 'recertified' used tape cartridges that Imation acquired through standard commercial channels, the company used off- the-shelf techniques, and randomly obtained recoverable, intelligible information from one-third of the cartridges tested. Some of the data discovered on used tapes during testing includes:

    A global banking institution        Internal bank auditing procedures,
                                        account numbers, employee credit
                                        card records, computer user names
                                        and computer server inventories
    A major U.S. hospital               Patient names, addresses, phone and
                                        Social Security numbers; clinical
                                        records including doctor diagnoses
                                        and prognoses
    A scientific research center        Field research data including
                                        geographic coordinates and
                                        conditions, names and email
                                        addresses of researchers
    A large U.S. university             Links pointing to the human genome
                                        project

"In our lengthy testing and analysis, which has spanned many months, we have confirmed industry guidance that the only way to properly dispose of data is to destroy the media itself, said Dr. Kulkarni. "The technical truth is there is no practical and secure way to completely erase and 'recertify' most used tape products. We want to get the word out to both the data center managers and senior executives who may not realize the risks they are exposing their companies to with this practice."

Keeping a Lock on Corporate America's Data

Imation, with its long history and commitment to protecting customer data, offers a variety of solutions for storing and protecting user data and assisting companies in transitioning or migrating between tape formats, while also offering cost effective solutions.

Imation's program begins with secure destruction, which ensures that used tape is securely destroyed in compliance with industry best practices, often free of charge. Imation also offers repurchase credits for securely destroying used media which provides discounts for the purchase of new media as users migrate from older to newer tape technologies.

In addition, to address the need in the market for safe and cost-effective disposal of used tape products and to promote a positive impact on the environment, Imation will launch Earthwise(TM) media in November. Earthwise media contains new media, shells made from pre-consumer recycled material and where available recycled cartridge components captured during the secure destruction process to create an environmentally friendly alternative to current recertified media.

Finally, Imation offers the DataGuard rf(TM) Tape Tracking System which uses RFID (radio frequency identification) to assist users with inventory management of their tape library.

As corporate data security becomes increasingly important in the face of growing budget concerns, Imation is addressing the needs of the data center with solutions that won't compromise the effective storage, protection and management of sensitive information.

For more information and tips on storing and protecting data, go to http://www.imation.com.

About Imation Corp.

Imation is a leading global developer and marketer of branded products that enable people to capture, save and enjoy digital information. Our world- class portfolio of digital storage products, audio and video electronics, and accessories reaches customers through a powerful global distribution network. The goal is a company with strong commercial and consumer businesses and continued long-term growth and profitability that creates shareholder value. Imation Corp.'s global brand portfolio, in addition to the Imation brand, includes the Memorex brand, one of the most widely recognized names in the consumer electronics industry, famous for the slogan, "Is it live or is it Memorex?" and the XtremeMac brand. Imation is also the exclusive licensee of the TDK Life on Record brand, one of the world's leading recording media brands. Additional information about Imation is available at http://www.imation.com.

Imation, the Imation logo, DataGuard rf, Earthwise, the Earthwise logo, Memorex, the Memorex logo, 'Is it live or is it Memorex?' and XtremeMac are trademarks of Imation Corp. and its subsidiaries. The TDK Life on Record logo is a trademark of TDK Corporation. All other trademarks are property of their respective owners.

SOURCE Imation Corp.

http://www.imation.com

"Our customers are asking how they can save money and do more with less," said Kevin Turner, chief operating officer at Microsoft. "Microsoft is uniquely positioned to help our customers save money through supplier consolidation, increased productivity, and a low total cost of ownership through the depth and breadth of our product portfolio and solutions." Microsoft continued to add to its product and services portfolio with innovative offerings such as Microsoft SQL Server 2008, Microsoft Hyper-V Server 2008 and the first service update to Microsoft Dynamics CRM Online. "In a challenging economic environment, the first-quarter results exhibit the strength and diversity of our business model," said Chris Liddell, chief financial officer of Microsoft.

Business Outlook Microsoft's business outlook reflects a balance of risks and the likelihood of a continued economic slowdown. The trends seen late in the first-quarter are now forecasted to continue, whereas previous expectations were for the economy to improve in the second half of the fiscal year. In this economic environment, the company is focused on three main actions; working with customers to provide high value products at the lowest total overall cost of ownership, increasing focus on expense management and targeting investment into the highest priority strategic opportunities.

Microsoft management offers the following guidance for the quarter ending Dec. 31, 2008:- Revenue is expected to be in the range of $17.3 billion to $17.8 billion.- Operating income is expected to be in the range of $6.1 billion to $6.4 billion.- Diluted earnings per share are expected to be in the range of $0.51 to $0.53.

Management offers the following guidance for the full fiscal year ending June 30, 2009: - Revenue is expected to be in the range of $64.9 billion to $66.4 billion.- Operating income is expected to be in the range of $24.4 billion to $25.5 billion.- Diluted earnings per share are expected to be in the range of $2.00 to $2.10.

Liddell noted that "we feel extremely good about our relative competitive position and our ability to continue outgrowing IT spend. We believe our exceptionally strong cash flow, product pipeline and financial strength will allow us to weather economic conditions well."

(C) 2008 Al Bawaba (www.albawaba.com)

Net sales rose to a record USD984.3m for the third quarter of 2008, an increase of 8.7% from USD905.7m for the corresponding period of 2007. A The management anticipates fourth quarter 2008 diluted earnings per share to be in the range of USD0.40 to USD0.44. The capital expenditures forecast is in the range of USD125m for 2008.

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Memorex's new line of in-ear headphones brings comfort advancements currently enjoyed by commercial and industrial users to the consumer market at an affordable price. "Consumers want a quality listening experience in terms of superior acoustics, but they also want comfort, versatility and value," said Carla Pihowich, Memorex brand director, Imation Corp. "Memorex's new earbud line offers a range of three headphone models perfect for travel, working out, or just hanging out at home."

Comfortable and Affordable Earbuds from Memorex

Memorex's new line of earbuds features the most comfortable eartip on the market, with patented memory foam technology from Howard Leight. Howard Leight's unique Soundelity eartips are soft and self-conforming to users' unique ear canal shapes. Results are a more personal fit for both extended wear comfort and improved acoustics. Soundelity technology offers superior passive noise canceling and bass sound thanks to the properties of the self-conforming foam.

Availability

Memorex's EB100 headphone model features 14mm drivers, while the EB200 and EB300 models feature 9mm drivers. All models feature a 1.2M cord (3.9 feet) and 3.5mm stereo gold-plated plug. Memorex EB100, EB200 and EB300 in-ear headphones will be listed for suggested retail prices (SRPs) of $24.99, $29.99 and $39.99 respectively. The entire line will be available at OfficeMax starting in November.

About Memorex

Memorex is one of the most trusted and recognized consumer brands in modern marketing history. A portfolio brand of Imation Corp. (NYSE: IMN), Memorex is the North American market share leader in optical media and media accessories at retail and one of the best known names in the consumer electronics industry. Memorex reaches into millions of homes with home audio and video products, MP3 players, digital picture frames, iPod(R) accessories, and LCD televisions that are stylish and simple in form and function. For more information about Memorex, please visit http://www.memorex.com.

Memorex, the Memorex logo, eMemorex, and Imation are trademarks of Imation Corp. and its subsidiaries. Howard Leight and Soundelity are trademarks of Sperian Hearing Protection, LLC. All other trademarks are property of their respective owners.

SOURCE Imation Corp.

http://www.imation.com