More information on events, online programmingand the most up-to-date news pertaining to the information security industry canbe found at RSA and RSA Conference are either registered trademarks or trademarks of RSASecurity Inc in the United States and/or other countries All other marks aretrademarks of their respective companies. Photos/Multimedia Gallery Available: http:// CommunicationsAlex Kirschner, Copyright Business Wire 2009. MINNEAPOLIS--(Business Wire)--Rimage Corporation (Nasdaq: RIMG) today reported sales of $18,358,000 for thefirst quarter of 2009 ended March 31, compared to $22,749,000 in theyear-earlier period. First quarter earnings were $1,185,000 or $0.13 per dilutedshare versus $1,786,000 or $0.18 per diluted share in the same period of 2008 Bernard P. (Bernie) Aldrich, chief executive officer, commented: "Rimage`s firstquarter operating results continued to be affected by the global economicdownturn. We are experiencing lengthened selling lead times for our discpublishing hardware due to the hesitancy of many existing and prospectivecustomers to purchase capital equipment. In addition, our customers are managingtheir inventories of consumable supplies in a cautious manner, reflectingreduced consumption of blank discs and replacement printer ribbons/cartridgesused in retail and other applications.

Rimage`s first quarter gross marginbenefited from a shift in product mix and reduced costs related to improvementsto our products that have further strengthened their performance andreliability. Our first quarter earnings also benefited from the actions we havetaken in recent quarters to streamline our cost structure. Primarily due to ouremphasis on cost control, selling, general and administrative expense has beenreduced by approximately $1.3 million in comparison to last year`s firstquarter. At the same time, we have increased spending on product development,reflecting our commitment to further strengthen Rimage`s position for futuregrowth." He added: "We see promising opportunities for our disc publishing systems in thegovernment market, archiving and video applications, and electronic medicalrecords.

We also are continuing to evaluate new business opportunities.Spearheading this process is Sherman L. Black, Rimage`s new president and chiefoperating officer, who previously served as senior vice president, marketing andstrategy, of the Core Products Business Group of Seagate Technology. Havingstarted in his new capacity in early April, Sherman also will play a key role informulating a long-range strategic plan. With cash and investments ofapproximately $97 million at the end of this year`s first quarter, we possessample resources for supporting our growth initiatives." Financial ReviewRecurring revenues, including sales of printer ribbons and cartridges, parts,blank CD/DVD media and maintenance contracts, declined 17% in this year`s firstquarter in comparison to the year-earlier period and accounted for 64% of sales,compared to 62% in the first quarter of 2008. Recurring revenues have accountedfor a higher than normal proportion of total sales over the past year due toreduced demand for disc publishing hardware as a result of the recession. International sales declined 10% in this year`s first quarter and accounted for48% of total sales, compared to 43% in the year-earlier period.