A press snippet detailing the exciting cool i-zone products and other polaroidia we can see in the next couple of years: ------------------------------------------ Polaroid Corporation Outlines Digital Strategy -- Targets Growth in Mobile, Wireless Market -- NEW YORK -- February 1, 2000 -- Polaroid Corporation (NYSE: PRD) announced a new digital strategy to develop products for the mobile, wireless market that leverage the company’s technical expertise in instant imaging. Gary T. DiCamillo, Polaroid chairman and chief executive officer, outlined that strategy today to members of the media and financial communities in a briefing at the New York Stock Exchange. Polaroid and a number of industry experts foresee a coming explosion in the creation and communication of digital images over the next several years. Some estimates gauge the growth to be 10-fold with images driven not only by digital cameras and scanners, but by personal digital assistants, set-top boxes, streaming videos, the Internet and mobile cellular. Polaroid is off to a strong start creating a presence in the digital imaging business. The company sold more than 400,000 digital cameras last year, establishing Polaroid as the number-one brand in the U.S. mass merchandising channel, and among the top digital brands in all U.S. channels. DiCamillo explained that Polaroid intends to produce an ongoing stream of new products that will allow consumers to easily put images onto the Internet and print them anytime, anywhere. "Our technology is not focused simply on current instant film. We are using our technical expertise to extend into media specifically designed for digital capture, transmittal, and printing," he said. In addition, Polaroid is creating new digital products on the commercial side of its business, where a trend toward digital capture has added to the product and revenue mix. DiCamillo cited the SP350 System – which retains instant film output capability – and secure ID cards – such as driver's licenses – as examples of Polaroid’s success in linking instant media with digital technology. Also planned are new products for commercial applications that leverage mass-market platforms. Discussing the recent revitalization of Polaroid’s consumer business, DiCamillo said that two of the company’s most recent successes – Polaroid I-Zone and JoyCam – made several top-10 hot product lists this past holiday season. I-Zone was the number-one selling camera in the United States for the fourth quarter of 1999, as measured by Nielsen. "We are reaching an entirely new customer segment. JoyCam and I-Zone users skew heavily toward kids, teens and young adults, and they are largely incremental to our existing customer base," he said. DiCamillo noted that JoyCam and I-Zone users are more likely to trade up to new cameras than users of traditional cameras. That results in multiple camera purchases. "So we have changed our business model slightly, assuming that each camera has a shorter lifespan and hence burns a proportionately smaller number of film packs. Therefore, we are pricing our new cameras to be much more profitable than our legacy line," he said. In addition to DiCamillo, several other Polaroid executives presented their perspectives, including Judith G. Boynton, executive vice president of business development and chief financial officer; senior vice presidents Sandra B. Lawrence and Paul E. Lambert; and vice presidents, Robert S. Murray, Clifford P. Hall and Daniel S. Reid. Today’s briefing follows last Wednesday’s announcement that Polaroid’s fourth quarter revenues for 1999 totaled $650 million, up 20 percent from the same period in 1998. For the full year, Polaroid’s sales were up seven percent to $1.98 billion compared to $1.85 billion for 1998. After the presentations, attendees enjoyed a chance to see an array of Polaroid new products currently in the market or planned for launch within the next 12 months. Included were: I-Zone Pocket Combo Camera – It is two cameras in one: a digital camera for sharing pictures on the web and a pocket camera for sharing pictures instantly. I-Zone Pocket Scanner – This small mobile scanner transforms I-Zone prints and other small images into digital files for sharing on the Web. Digital Instant Cameras – These represent Polaroid’s first truly mobile digital instant cameras. They combine digital capture with instant prints. They also produce high quality digital images that can be previewed, instantly printed in any quantity, or stored on your personal computer. 1200i and 1200si – The first in a new line of cameras and film replacing Spectra II and Spectra AF models, the 1200i and 1200si products will be available for suggested retail prices of $89.99 and $99.99 respectively. PhotoMAX PDC 1100 – This consumer-friendly "megapixel" digital camera from Polaroid incorporates both megapixel resolution and 2X digital zoom, providing cutting edge technology for an economical price. Available now with a suggested list price of $299. PhotoMAX Web Printer – Ideal for printing Polaroid instant photos from digital files on your personal computer. PhotoMAX Fun! Flash 640 Digital Camera Creative Kit – The kit includes a digital camera offering high-quality images with a 640 X 480 resolution and is bundled with PhotoMAX 3.0 Image Maker software. Available now for a suggested retail price of $149.95. PhotoMAX Fun! Digital 320 Creative Kit – For amateur photographers, children and families, the kit includes an entry-level point-and-shoot digital camera with a 320 X 240 resolution, as well as PhotoFantasy and PhotoMAX SE 2.1 Image Maker software. Available now for a suggested retail price of $59.95. ID Card Printer – High-quality digital photo ID software that will allow you to create secure, custom photo ID badges for your entire organization, right from your personal computer. SprintScan 45 Ultra – A multi-format digital film scanner that offers 2500 dpi, high-resolution images with a single pass in less than five minutes. This professional scanner will be available for a suggested list price of $9,995. I-Zone Instant Pocket Cameras – A striking silver model joins the current line of red, blue and green pocket cameras and is sure to appeal to older teens and males. New colored translucent models revealing the internal electronics of the camera will follow. Licensed Pocket Cameras – These feature Tweety and Bugs Bunny and are available now for a suggested retail price of $27.99. The Barbie® Instant Pocket Camera comes with Barbie photo shoot "must haves," including a compact mirror, comb, photo-frame key chain, and a built-in photo frame on the bottom of the camera. It is currently available for a suggested retail price of $27.99. JoyCam – The ultimate party camera for teens and young adults will be re-outfitted in silver for the new millennium. Soon available for a suggested retail price of $24.99. Polaroid Advanced Photo Systems (APS) – Four new APS cameras – 7100 FF, 7200 FF, 7300 AF, and 7500 Zoom – will be available for suggested retail prices of $24.99, $29.99, $49.99, and $79.99 respectively. Digital Macro 5 Adapter – It is an accessory designed to maintain Polaroid’s leadership position in Instant Macro photography, such as in the dental market, by utilizing digital technology. Mobile Digital Printers/Cameras – These take advantage of both emerging wireless technologies and the Internet. For example, one combination features a wireless digital camera and mobile film printer resting in a base station that also serves as a connection to the Internet. PFS-100 scanner – A very small, affordable "digital camera for your finger," the PFS-100 provides positive user authentication by taking advantage of a person’s unique finger image to produce a highly secure and complex equivalent to a personal identification number (PIN). It is ideal for ensuring secure, authorized access to personal computers and is very user-friendly -- nothing new to remember and as simple as pressing a doorbell. Polaroid Corporation, with annual sales of approximately $2 billion, is the worldwide leader in instant imaging. Polaroid supplies instant photographic cameras and films; digital imaging hardware, software, and media; secure identification systems; sunglasses and polarizers to markets worldwide. "JoyCam," "Polaroid," "Polaroid I-Zone," "Polaroid PhotoMAX" and "Spectra" are trademarks of Polaroid Corporation. Looney Tunes, characters, names and all related indicia are trademarks of Warner Bros. BARBIE is a trademark owned by and used under license from Mattel, Inc. All other product names may be the property of their respective owners. This release contains "forward-looking statements" about Polaroid’s future performance. There are, however, a number of factors that can affect the company’s future prospects and progress. These include, among other things, the company’s past net loss position and level of debt; the restrictions imposed by the company’s debt on its financial flexibility; possible failure to reduce cycle time; the highly competitive markets; the effects of customer concentration; emerging markets; foreign exchange rate fluctuations; the possible impact of contract manufacturing, raw materials, and supplies; loss of patents and trademarks; potential exposure to environmental liabilities; dependence on key personnel. Please refer to the cautionary statements contained in the "Factors that could Affect Future Results" section of the company’s 10-K and 10-Q filings for a more detailed explanation of the inherent limitations in such forward-looking statements.
