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4 IM ATION ANNUAL REPORT 5 IM ATION ANNUAL REPORT
TAPE CAPACITIES OF A TERABYTE
and beyond will be enabled
by Imation’s proprietary metal
particulate Tera Ångstrom
technology combined with
N Pattern” Servo Writing technology,
an industry benchmark. The coated
tape “ pancake” (photo) is laser-
enscribed with a reference pattern
(superimposed above) to achieve
nanometer-level tracking accuracy.
4 IM ATION ANNUAL REPORT4 IM ATION ANNUAL REPORT
magnetic storage
MEETING THE PROFESSIONAL DATA STORAGE NEEDS
Imation is the global market leader in data storage tape cartridges and diskettes. Our estimated
35 percent market share is nearly double that of our nearest competitor. As the demand for storage
capacity has exploded across such diverse industry applications as banking, nancial services,
telecommunications, aerospace and geophysical exploration, the demand for higher capacity magnetic
tape storage solutions has risen in step. Imation’s data storage legacy reaches back to 1952, when
the fi rst commercial magnetic tape was introduced. Imation has continued to innovate to deliver ever-
greater data density that enables companies to store more of their critical data in the same physical
space. We work in close collaboration with the key tape drive and library OEMs as they develop the next-
generation drives. OEMs look to Imation as a critical development partner, leveraging our ve decades
of experience, industry expertise and our U.S.-based manufacturing and development capabilities.
Imation’s technology innovation starts at our headquarters in the Discovery Technology Center, the
only research facility in North America spanning the four pillars of magnetic, recordable optical,
ash and removable hard disk storage. Here, more than 200 scientists work to create the technology
capabilities needed to address data storage preservation and retrieval. We have invested nearly
$800 million in R&D and capital spending since 1996.
We continue to break new ground in tape coating, servo writing, cartridge design and fabrication,
optical technology, ash design and material sciences with more than 350 U.S. data storage patents
in force. Responding to the need for higher capacity and performance in tape, Imation developed its
proprietary Tera Ångstrom technology, a metal particulate (MP) advanced tape-coating process
resulting in unprecedented surface smoothness and uniformity, enabling terabyte-and-beyond
capacity in one cartridge. In 2005, Imation also unveiled its patented Precision-Tracking N Pattern
Servo Writing technology, an ultra-precise reference pattern which is servo-written on magnetic tape,
enabling nanometer-level data tracking accuracy and delivering a new level of capacity performance
for enterprise tape systems.
Both recent technology breakthroughs provide a path to a broad array of new magnetic tape products
today and into the future. Ramping up of our state-of-the-art Tera Ångstrom tape facility in Weatherford,
Okla., enabled Imation to lead as the fi rst media manufacturer to ship next-generation LTO-3 tape
cartridges globally, doubling the capacity of the LTO generation 2 tape cartridge and offering protection
unlike any other LTO cartridge. Imation’s patented cartridge design, including a three-piece spool and
reinforced corner snaps, distributes stress more evenly over the tape, better protecting the data. Imation
was selected by StorageTek (now part of Sun Microsystems) to co-develop and manufacture its next-
generation T10000 media, using Imation’s revolutionary N Pattern Servo technology, which has been
licensed as the servo technology for use in all T10000 tape cartridges.
35
PERCENT MARKET SHARE LEADER
5 IM ATION ANNUAL REPORT