Imation Corp. (NYSE: IMN) today announced it has acquired substantially all of the assets of privately held Xtreme Accessories, LLC, (XtremeMac) for a purchase price of $9 million, to be comprised of $7 million of cash paid to XtremeMac plus $2 million of assumed net liabilities. There is potential additional consideration up to $10 million payable over a three-year period, contingent on financial performance of the acquired business. The acquisition is not expected to have a material impact on Imation’s results of operations in fiscal 2008.

XtremeMac, a Florida-based product design and marketing firm focused on consumer electronics products and accessories for the iPod, iPhone and Apple TV markets, generated approximately $25 million of revenue in calendar year 2007. Commenting on the transaction, Frank Russomanno, Imation’s President and Chief Executive Officer said: “This acquisition is another building block in our strategy as we build a portfolio of strong brands that resonate with consumers—in this case the large and growing number of iPod, iPhone and Apple TV customers. With the acquisition of XtremeMac, Imation has added a brand recognized and respected by Apple enthusiasts and one that enhances our portfolio of products serving the growing market for consumer electronics related accessories. The XtremeMac accessories can be found in Apple stores, consumer electronics retailers and on-line channels.”

“Under Gary Bart, XtremeMac has developed a reputation for award-winning product designs. Their design experience and understanding of these markets broadens and strengthens our overall consumer electronics and accessory capability,” he concluded.

Gary Bart, founder and President of XtremeMac said: “The combination of XtremeMac’s market knowledge and product design skills with Imation’s global reach and supply chain capabilities allows us to take advantage of the worldwide market opportunity in A/V consumer electronics accessories and create an unparalleled experience for our customer base. I am pleased to join the global Imation team as Executive Director, guiding iPod, iPhone and Apple TV accessory product design and direction as we integrate the XtremeMac brands into the growing Imation portfolio.”