EXHIBIT 99.1




Contact:      Brad Allen
              Vice President, Corporate Communications & Investor Relations
              (651) 704-5818

                           FOR IMMEDIATE RELEASE

           Imation Corp. Outlines Plans for Use of Proceeds from
             Sale of Medical Imaging Systems Business to Kodak

          OAKDALE, Minn. (December 1, 1998) -- Imation Corp. (NYSE:IMN)
today announced that it intends to pay down outstanding debt and certain
lease obligations totaling approximately $360 million and expects to
establish a new credit facility. The company anticipates it will resume
open market purchase of its common stock in the first quarter of 1999. This
follows an earlier announcement of the sale of its medical imaging
businesses to Eastman Kodak Company (NYSE:EK). (See: Kodak Completes
Acquisition of Imation's Medical Imaging Business; Business Wire; December
1, 1998.)

          Bill Monahan, Imation chairman and chief executive officer said:
"With the sale of our medical imaging business, we achieve significant
financial flexibility and strength with which to build shareholder value.
We will implement a more optimal capital structure and lower our coverall
cost of capital through a new credit facility by the end of this year. We
intend to resume share repurchase in the first quarter of next year. We
recognize the significant value-creating opportunity a share repurchase
program will have and view the resumption of our repurchase activity both
as a recognition of the current value of the stock and as a critical part
of our commitment to building long-term shareholder value."

          The company is scheduled to report its fourth quarter financial
results in early February, and under standard regulatory guidelines would
be precluded from open market purchases until the results are released.
Therefore, the company anticipates it would likely resume share repurchase
once the fourth quarter results have been reported. 





Imation has authorization for the repurchase of up to 3.5 million shares
out ofapproximately 39 million shares outstanding.

          The sale of Imation's medical imaging systems business was
announced August 3, 1998. Kodak is making an initial payment of $389
million in cash for the businesses in North America, Latin America, and
Asia, and over the next six months Imation will receive an additional $143
million associated with the medical imaging businesses in Europe, as these
businesses are acquired by Kodak. Imation will no longer report the
financial results of these European businesses as part of its operations.

          Approximately 1,600 Imitation employees worldwide are
transferring to Kodak and Kodak has acquired Imation medical imaging
systems facilities in Minnesota, Oregon and California. Imation will retain
its Ferrania, Italy manufacturing facility. As part of the agreement,
Imation will supply conventional x-ray film and wet laser film from its
Ferrania facility to Kodak for two years.

          The completion of today's transaction also settles civil
litigation concerning certain intellectual property disputes between the
companies in the United States and Italy.

          Further commenting on the transaction, Monahan said: "Strategy is
about making choices and the sale of our medical imaging operations,
including our DryView laser imaging film and systems business, is a
positive and important strategic step forward. This transaction has
captured the full value of the business and enables us to concentrate our
efforts on those businesses where we have significant technological
expertise, leverageable market strength, and strong profitable growth
opportunities. We intend to sharpen our focus on future growth
opportunities in data storage, image and color management products and
solutions as well as strengthen our offerings in color proofing."






          Imation supplies a variety of products and services worldwide for
the information and image management industry, specializing in imaging and
data storage solutions. In 1997, the Company generated revenues of
approximately $2.2 billion. Imation employs approximately 8,400 people
worldwide and is based in Oakdale, Minnesota.

          Additional information about Imation is available on the
Company's Web site at www.imation.com or by calling Imation toll-free at
1-888-466-3456. To receive recent earnings and new releases, corporate
information and related shareholder services, call Imation's toll-free
shareholder information line at 1-888-IMN-NYSE (1-888-466- 6973).

                                    ###

        Certain information contained in this news release
          which does not relate to historical financial
         information 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 which 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
         the successful closing of the announced sale of
        businesses, the company's ability to meet its cost
             reduction or revenue growth targets, the
        competitive pricing environment, foreign currency
         fluctuations, and the market acceptance of newly
        introduced products as well as various factors set
        forth in the Company's filings with the Securities
        and Exchange Commission, including its 1997 Annual
                       Report on Form 10-K.