Polaroid

Polaroid has today announced that, “U.S. Bankruptcy Court has approved procedures for the proposed sale of its business to an investor group led by One Equity Partners — the private equity arm of Bank One Corporation) – or to a bidder with a higher or better offer. The court has set Friday, June 28, 2002, for a final hearing on the sale.” They go on to say, “This is an important milestone in our plan to emerge from Chapter 11. We remain committed to securing a strong buyer for the company to maximize value for our creditors and to create a new beginning for Polaroid as an ongoing business.”

Press release 7/May:

Court Sets Polaroid Sale Hearing for June 28, 2002

CAMBRIDGE, Mass., — May 7, 2002 – Polaroid Corporation announced today that the U.S. Bankruptcy Court has approved procedures for the proposed sale of its business to an investor group led by One Equity Partners — the private equity arm of Bank One Corporation (NYSE: ONE) – or to a bidder with a higher or better offer. The court has set Friday, June 28, 2002, for a final hearing on the sale.

Gary T. DiCamillo, Polaroid chairman and chief executive officer, said, “This is an important milestone in our plan to emerge from Chapter 11. We remain committed to securing a strong buyer for the company to maximize value for our creditors and to create a new beginning for Polaroid as an ongoing business.”

UPDATE 9/May:

DiCamillo to Leave Polaroid Corporation For CEO Appointment at TAC Worldwide

CAMBRIDGE, Mass., — May 8, 2002 — Polaroid Corporation announced today that Gary T. DiCamillo, chairman and chief executive officer, will resign effective July 1, 2002 to become president and chief executive officer of TAC Worldwide Companies, based in Dedham. He will continue in his position at Polaroid until that date, and then remain as a member of the Polaroid board of directors.

DiCamillo said, “I feel a responsibility to see Polaroid through this crucial period of its reorganization and to help prepare the company to emerge from Chapter 11 as an independent company ready for new ownership and new growth opportunities. This is a time of new beginnings both for Polaroid and for me personally as I assume the job of CEO at TAC Worldwide, one of the largest private corporations in the United States.

“I will leave with sincere thanks to the strong management team at Polaroid, to the many employees with whom I have been privileged to work, and to a loyal and independent board of directors,” he said.

DiCamillo joined Polaroid as chairman and chief executive officer in October 1995. Prior to that, he served as group vice president of the Black & Decker Corporation and president of Worldwide Power Tools and Accessories.

Board member Alfred M. Zeien, retired chairman and chief executive officer of The Gillette Company, said, “We have been fortunate to have Gary remain to guide the company over this long, difficult period.”

Another member of the board, John W. Loose, former president and chief executive officer of Corning Incorporated, said, “Gary has been steadfast in fulfilling the Board’s wishes that he remain CEO. He has earned our gratitude, and we wish him only good things in the future.”

Sal Balsamo, founder of TAC and co-chairman of the company’s board of directors, stated, “To attract someone of Gary DiCamillo’s professional and personal excellence to head our company is indeed our good fortune. Gary’s leadership expertise, as well as his abundantly fine character, will provide TAC with steadiness and strength as we move forward in years to come.”

Polaroid, yes the company that we all thought had already left the market, has today announce a new digital camera. But not only that, Polaroid make the bold statement that the PDC 1320 “Delivers 35mm Image Quality at an Affordable Price”. I’m thinking that just a few digital imaging experts may argue that a 1.3 megapixel digital camera would struggle to do that. Indeed I can’t remember a single digital camera manufacturer who has made that statement, let alone with a 1.3 megapixel $199 unit.

Press release:

Polaroid Introduces the PhotoMAX PDC 1320 Megapixel Digital Camera

Polaroid PhotoMAX PDC 1320 Delivers 35mm Image Quality at an Affordable Price

CAMBRIDGE, Mass., Nov. 12 /PRNewswire/ — Polaroid Corporation announced today the availability of the PhotoMAX PDC 1320, a truly consumer-friendly megapixel camera for the photographer interested in printing and sharing digital photos. The PhotoMAX PDC 1320 is the latest addition to Polaroid’s popular PhotoMAX consumer digital imaging product line, and it delivers 35mm image quality photos. The new digital camera incorporates both megapixel (1280 x 960) and VGA resolution modes allowing the user to optimize image capture for printing or online sharing, a 2X digital zoom, and three flash modes. Suggested U.S. list price of the PhotoMAX PDC 1320 digital camera is $199.99.

“Our goal is to continue to provide our consumers with new advanced digital products as they become more acquainted with technology,” said Terry Carlson, Polaroid vice president and general manager of North America. “The new PhotoMAX PDC 1320 offers Polaroid’s signature ease-of-use, combined with the benefits and flexibility of a megapixel digital camera.”

The PDC 1320 unites megapixel resolution with style and simplicity at an economical price. With consumer-friendly and easy-to-use features, the PDC 1320 offers digital photography enthusiasts a high quality digital camera without the high-tech hassles. The new PDC 1320 lets users easily review and share digital pictures right away with a 1.8-inch color LCD screen. The PhotoMAX PDC 1320 also features 8 MB of internal memory, a CompactFlash removable memory slot and a USB interface for downloading images. It even comes equipped with a camera pouch, automatic self-timer and picture counter, and is tripod mountable.

The PhotoMAX PDC 1320 is bundled with Polaroid’s PhotoMAX Image Maker Software making the digital imaging process fun and easy for everyone. Users can download images and then edit, enhance and manipulate photos with point- and-click ease, taking ordinary photos to new levels. The software also allows digital shutterbugs to create calendars and cards, design electronic mail, and turn prized photos into screensavers and wallpaper. PhotoMAX Image Maker Software is easy to use, and even offers users templates to create effective business and marketing materials for the home or small office. The PDC 1320 Digital Camera Creative Kit has all the tools digital camera users need. The Creative Kit includes the PDC 1320 Digital Camera, PhotoMAX Image Maker Software, batteries, PC and TV cables, an AC adapter, a wrist strap, Quick Start Guide and online tutorials.

Pricing and Distribution

Suggested U.S. retail price for the complete PhotoMAX PDC 1320 Digital Camera Creative Kit is $199.99. The PDC 1320 Digital Camera Creative Kit is available at select retailers. Call 1-800-343-5000 for more information on the PhotoMAX PDC 1320 Digital Camera and other Polaroid products.

Computer System Requirements and Compatibility

To use the Polaroid PhotoMAX PDC 1320 Digital Camera, users require Microsoft Windows 98, ME or 2000, a 200 MHz Pentium processor or equivalent, 2X or faster CD-ROM drive, 32 MB of RAM, 195 MB of hard disk space, a USB port, and a high color display with 800 x 600 DPI.

Polaroid Corp. has today filed for Chapter 11 Bankruptcy Protection (according to Fox News). This has been on the cards for several days, it now seems to have finally happened. Polaroid’s last recorded share value was 28 cents compared to a 10 year high of $60.31 back in July 1997. According to Reuters Polaroid owes almost $1 billion in total ($600 million to bond holders, $350 million to two groups of banks).

Reuters story: (from Fox News)

Polaroid Files for Ch. 11 Bankruptcy Protection

CAMBRIDGE, Mass. — Polaroid Corp. , an American icon that became famous for a camera that delivered pictures in seconds, Friday said it filed for bankruptcy protection after being hounded by bondholders for missing interest payments this summer.

Waylaid by one-hour film developing shops and a heavy debt load, the Cambridge, Massachusetts-based company’s core business suffered from the rise of digital cameras while being late to develop its own digital technologies.

Polaroid, once propelled by the wizardry of Harvard University dropout Edwin Land and his camera that squeezed out pictures almost instantly, said it filed for protection under Chapter 11 of the U.S. Bankruptcy Code with the U.S. Bankruptcy Court in Delaware. Polaroid owes about $600 million to holders of its bonds and about $350 million to two groups of banks.

Its shares have not traded since Tuesday on the New York Stock Exchange as speculation mounted that the one-time member of the “Nifty 50″ group of fast-growing stocks would seek bankruptcy protection. The stock, which reached a high of $60.31 in July 1997, closed at 28 cents Tuesday on the New York Stock Exchange, down 98 percent in the past year.

—

This from PRNewsWire:

Polaroid Files Voluntary Chapter 11 Petition, Receives $50 Million in New Financing

CAMBRIDGE, Mass., Oct. 12 /PRNewswire/ — Polaroid Corporation (PRD) today announced that, following this year’s steep decline in its revenues and the resulting impact on its liquidity, the company and its U.S. subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The filings were made in the U.S. Bankruptcy Court in Wilmington, Delaware. Polaroid intends to use the Chapter 11 process to restructure its business operations and finances.

Polaroid is open and conducting business in the U.S. and elsewhere around the world. Polaroid’s non-U.S. subsidiaries, including those in Europe, Asia and Japan, are not part of the filing.

In order to address immediate liquidity concerns created by the dramatic shortfall in revenue, Polaroid has obtained a commitment for $50 million in debtor-in-possession financing from a bank group led by J.P. Morgan Chase & Co. Upon court approval, which is expected shortly, $40 million of these funds will be available immediately on an interim basis to supplement the company’s existing cash flow and help Polaroid fulfill obligations associated with operating its business, including payment to suppliers, vendors and other business partners for goods and services provided on or after today’s filing. The full $50 million commitment is subject to final court approval and other conditions.

Polaroid intends to continue to manufacture, market and distribute its core instant imaging products and to provide customer service and support for these products. Employees are being paid in the usual manner and their medical, dental and life insurance benefits are expected to continue unchanged.

Polaroid also announced that the company and its lenders have agreed to accelerate and intensify its exploration of a possible sale of all or parts of the company. Polaroid believes that such a sale would be in the best interests of all constituencies, including employees. As previously announced, Polaroid has retained financial advisors to assist with this process.

Additionally, in light of its reduced revenue base and the uncertain economic outlook, the company has initiated a thorough evaluation of all aspects of its business operations with the objective of achieving significant cost savings beyond those already provided by the company’s previously announced restructuring activities. This process will result in the disposition or elimination of non-core products and businesses, additional asset sales, facility closings, and a further reduction in personnel.

Gary T. DiCamillo, chairman and chief executive officer, said, “After a thorough analysis of Polaroid’s financial condition and the rapidly changing outlook in our key markets, the board of directors and senior management concluded that today’s court filings by our U.S. operations were both prudent and necessary. Despite our best efforts to stabilize revenue, reduce costs and maximize cash flow, the company’s financial condition deteriorated further in recent weeks.

“Filing for Chapter 11 at this time allows Polaroid to enhance its liquidity by supplementing cash flow from operations with $50 million in new financing. It also allows us to initiate a formal process in which to intensify our exploration of strategic alternatives and work with our creditors to develop a plan to resolve their financial claims.

“From an operational standpoint,” DiCamillo continued, “we intend to continue shipments of our core instant imaging products to customers as normal and meet our post-petition obligations to suppliers, vendors and other business partners. We will also continue to pursue opportunities to maximize the potential of our Opal and Onyx instant digital printing technologies.”

In conjunction with today’s court proceedings, Polaroid expects to file a variety of “first day motions” to support its employees, customers and suppliers. These include motions seeking court permission to: continue payments for employee payroll and health benefits; honor existing warranties; obtain interim financing authority and maintain cash management programs; and retain legal, financial, and other professionals to support the company’s reorganization. In accordance with applicable law and court orders, suppliers who provided goods or services to Polaroid or its U.S. subsidiaries before today’s filing may have pre-petition claims, which will be frozen pending court authorization of payment or consummation of a plan of reorganization.

William L. Flaherty, executive vice president and chief financial officer, said, “Polaroid made significant progress over the last year toward reducing costs through restructuring, improving working capital, consolidating manufacturing, reducing capital spending and selling non-core assets. However, it is evident that with the company’s substantially reduced revenue stream, additional steps must be taken during the reorganization process to improve the viability of the core instant imaging business, optimize the sale process and maximize the value of the enterprise.”

Polaroid redefine ‘low cost’. The PhotoMAX FUN! 620 can take up to 15 VGA (640 x 480) images, store them in its 1 MB internal RAM and transfer them by USB. At just $69.99 you’re not going to expect much on the image quality side of things but it may be a good way to get your kids into digital photography…

Press release:

Polaroid PhotoMAX FUN! 620 Digital Camera Makes Digital Photography Easy And Affordable

Entry-Level Digital Camera Uncovers Endless Creative Uses For Digital Photos

INTERNET WIRE — Polaroid Corporation (NYSE: PRD – news) announced today the PhotoMAX FUN! 620 Digital Camera, the latest entry-level digital camera from the PhotoMAX line. The PhotoMAX FUN! 620 is an economical point-and-shoot digital camera and comes complete with software to provide hours of creative things to do with digital photos. The camera is priced at an amazing $69.99 (U.S. MSRP).

The PhotoMAX FUN! 620 Digital Camera is the perfect accessory for amateur photographers, kids, and families who want to experience digital picture-taking. The FUN! 620 is a perfect camera to capture vacations at the beach, holiday gatherings, or a trip to Disney World and then post the images online — creating an Internet-based travel photo album for all to see! With the PhotoMAX FUN! 620 Digital Camera and a home PC, users can add special memories to online greeting cards and then instantly email them to friends and relatives. The creative possibilities are endless, and the PhotoMAX FUN! 620 Digital Camera can be effortlessly used by photo enthusiasts of all ages.

“The PhotoMAX FUN! 620 Digital Camera Creative Kit was developed to offer an economical choice for consumers who want to explore the fun options available with digital photos, without making a big investment,” said Craig Armstrong, Director of Consumer Digital Marketing at Polaroid Corporation. “The PhotoMAX FUN! 620 Digital Camera makes the fun of digital photography accessible to everyone, and is an ideal digital tool for families to jazz up their favorite snapshots.”

Designed with the novice photographer in mind, the PhotoMAX FUN! 620 Digital Camera features 640 X 480 pixel resolution, 24-bit color, 1 MB of internal memory, automatic self-timer, and picture counter.

The PhotoMAX FUN! 620 Digital Camera comes bundled with the Polaroid PhotoMAX Image Maker software, providing a full range of photo editing and enhancement tools to get the creative juices flowing.

Pricing and Distribution

Current manufacturer’s suggested U.S. retail price for the complete Polaroid PhotoMAX FUN! 620 Digital Camera Creative Kit is $69.99. The kit and stand-alone software are available at major retailers, traditional photographic stores, and computer and electronic stores nationwide.

Computer System Requirements and Compatibility

To use the PhotoMAX FUN! 620 Digital Camera, a Pentium-class personal computer, Microsoft Windows 95, 98, 2000 or ME, 32 MB of RAM, 195 MB of hard drive space, and a color monitor, are necessary. Software is compatible with all TWAIN-compliant digital cameras and scanners.

Anyone who has been following Polaroid’s fortunes over the last six months won’t be surprised by the events of the last week or so. There’s been plenty of talk of bankruptcy, sales and mergers. They’ve simply not moved quickly enough to embrace digital photography or digital photo finishing. “Pending the announcement, Polaroid shares were suspended near the end of trading Wednesday after falling 30 percent to $1.92 on the New York Stock Exchange (news – web sites) amid reports it was considering filing for bankruptcy.”

AP:

Polaroid to Explore Merger, Sale

BOSTON (AP) – Polaroid Corp. (NYSE:PRD – news) said Wednesday it would explore a merger or sale and said it received a reprieve from lenders, as the the camera and film maker tries to dig out from beneath a mountain of debt.

The company announced a waiver, good through Oct. 12, on a $363 million line of credit that was set to expire Thursday, but said it would miss payments to bond holders next month. It now faces negotiations with bondholders to restructure that debt.

The company also has retained advisers to explore several options for the future of the company, including “a sale of assets, a merger or sale of the company, and/or a strategic partnership,” said Polaroid spokesman Skip Colcord.

Pending the announcement, Polaroid shares were suspended near the end of trading Wednesday after falling 30 percent to $1.92 on the New York Stock Exchange (news – web sites) amid reports it was considering filing for bankruptcy.

The company must now negotiate with bondholders, who after 30 days could use the missed payments to force Polaroid into involuntary bankruptcy, said Buckman, Buckman & Reid analyst Ulysses Yannas.

“At this stage Polaroid has no intention of either declaring bankruptcy or going into a prepackaged bankruptcy,” he said. “At least that’s what the statement implies. It’s a question of how successful they can be renegotiating these notes.”

Polaroid said it would miss an $11 million interest payment due Monday and $16 million due August 15, as well as a $19 million principal payment due in September.

The company said it had retained Dresdner Kleinwort Wasserstein and Zolfo Cooper LLC to help it negotiate with bondholders. It has retained that firm and Merrill Lynch & Co to explore “strategic alternatives.”

“The receipt of these waivers demonstrates both the company’s continuing support from its bank group and the progress we are making in implementing our previously announced five-point plan to strengthen our financial position,” said chairman and chief executive Gary T. DiCamillo in a statement.

Yannas said it was little surprise that the company would consider a sale.

“When you are examining alternatives, you look at every alternative possible,” he said.

Previously, some analysts had indicated a waiver was likely because lenders had nothing to gain if Polaroid filed for protection. They said one clue was that lenders, who have tight controls over Polaroid’s purse strings, have allowed the company to spend $120 million on severance packages related to recent layoffs. The banks couldn’t recoup that money if the company declared bankruptcy.

Polaroid, founded in 1937, made its name producing instant cameras and film, but it was caught flat-footed by the recent shift to digital technology.

In May, Polaroid debuted a line of Opal and Onyx digital printers, and unveiled a plan to share the technology with other companies and build kiosks in high-traffic areas like shopping malls.

But while the technology impressed analysts, some said it came too late to make a dent in Polaroid’s debts, which totaled $860 million last month. The company laid off 950 workers in February and another 2,000 last month.

Kevin Kuzio, a debt analyst at KDP Investment Advisors Inc. in Montpelier, Vt., said before the announcement that even with a waiver, Polaroid still faces a serious crisis.

“We don’t think it’s any longer a situation where Polaroid is independently going to be able to finesse the transition to a provider of digital photo printing,” he said.

Reuters:

Polaroid gets waivers, mulls its sale

By Franklin Paul

NEW YORK, July 11 (Reuters) – Troubled camera and film maker Polaroid Corp.(NYSE:PRD – news) on Wednesday dodged a bullet by obtaining critical loan waivers with its U.S. bank lenders, but said it expected to miss other interest payments and was mulling the possible sale of the company.

The news came after Polaroid shares had tumbled as much as 46 percent on Wednesday to a low of $1.45 amid concerns the company might be on the brink of bankruptcy, amid a looming July 12 deadline to get back in compliance with two loans.

The stock was halted late in the session, and its last trade, at $1.86, was off 84 cents, or about 31 percent. Since the beginning of the year, Polaroid’s stock has underperformed that of photography giant Eastman Kodak Co.(NYSE:EK – news) by more than 70 percent.

Experts had predicted that Polaroid would likely come to an agreement with the banks, but still harbor concerns about the company’s ability to focus on its core operations while devoting so much energy to managing its debt obligations.

“Just because they get a waiver of 90 days does not mean that they are on Easy Street,” said John Moore, analyst at Moody’s. “They have to develop and prove that they can make the step technologically to what will continue to be Polaroid.”

Cambridge, Massachusetts-based Polaroid also said it expects to report second quarter financial results about in line with previously discussed expectations.

Following closely watched talks with its bank lenders, Polaroid said it obtained a waiver of some of its bank loan covenants through Oct. 12, as well as a waiver of a $19 million principal repayment that had been scheduled for September.

But Polaroid said it will not make interest payments on its bonds, totaling $11 million due on July 16, and a $16 million interest payment due Aug. 15. The company plans to start talks with bondholders toward a restructuring of its unsecured debt.

Polaroid said the waivers would maintain the company’s near-term liquidity and operational stability.

“In light of these and other cash conservation measures, the company is comfortable that its current cash resources and bank facility provide sufficient funding for the company’s business activities and its obligations to suppliers and vendors,” Polaroid Chief Financial Officer William Flaherty said in a statement.

In the meantime, the company has hired financial advisers Dresdner Kleinwort Wasserstein and Merrill Lynch to assist in an exploration of strategic alternatives, which could include a sale of assets, a merger or sale of the company.

Polaroid plans to spell out the progress of its cost cutting and debt reduction efforts on July 18, when it reports its second quarter financial results.

In June it said second-quarter operating results are likely to be around the operating loss reported in the first quarter, excluding special items.

For the first quarter, Polaroid posted an operating loss of $38 million, or 85 cents a share, excluding an $80 million restructuring charge.

Wall Street analysts have estimated Polaroid’s second quarter loss at 69 cents a share, according to Thomson Financial/First Call.

Polaroid said that if it had failed to get the extensions, the banks, led by J.P. Morgan Chase & Co. (NYSE:JPM – news), could call in the loans. The loans totaled at least $363 million.

Buckman Buckman & Reid analyst Ulysses Yannas, said the loan deal would give Polaroid time to raise cash, and could lead to the sale of small units that make sunglasses or produce pictures for identification. He predicted the company’s shares will rebound on Thursday.

“We will see some fireworks tomorrow,” he said.

Polaroid, which still boasts a huge installed base of instant camera users who continue to buy its film, has been working to trim expenses, raise cash, and reduce debt by cutting inventories, consolidating manufacturing, and selling assets.

To that end, in recent months it has suspended its dividend, set a restructuring, cut jobs, sold real estate, and realigned its executive ranks.

In recent weeks, Carl Lueders, vice president of finance and former acting chief financial officer and John Jenkins, senior vice president for global operations, have left the company.

Polaroid which ended 2000 with some 8,800 employees, had about 7,700 at the end of May. The company projects its ranks will shrink to 5,500 by the end of 2002.

In a press release today Polaroid Corp. announced a “major global restructuring plan” which is designed to reduce debt. Approximately 2,000 jobs out of a global workforce of 8,000 will be “phased out” over the next one and a half years. This doesn’t come as too much of a surprise after the recent appointment of a new CFO and various press releases concerning its troubled business.

Polaroid Announces Restructuring to Drive Profitability and Reduce Debt

Plans to Reduce Workforce by 2,000 Positions over 18 Months

CAMBRIDGE, MA – June 13, 2001 – Polaroid Corporation (NYSE: PRD) today announced a major global restructuring plan designed to reduce debt and return the company to profitability. Approximately 2,000 positions, or 25 percent of the global workforce of 8,000, will be phased out over the next 18 months.

The restructuring program should realize total annual cost savings of between $175 million and $200 million by the end of 2003, and the company will take a series of restructuring charges in 2001 and 2002 to reduce its cost base. These charges are expected to total between $150 million and $175 million. In addition to significant reductions in personnel, the restructuring will involve a reduction and reconfiguration of Polaroid’s global operations.

“This is an extremely difficult decision, but an absolutely necessary one if Polaroid is to compete in the digital future. We must focus on our new Opal and Onyx instant digital printing technologies and manage our core instant business to generate cash and reduce debt,” said Gary T. DiCamillo, chairman and chief executive officer.

This is the second restructuring announced by Polaroid this year and will impact virtually all of the company’s global operations, including about 1,000 employees in the United States – most of them in Massachusetts. In February, the company announced a restructuring to reduce its workforce by approximately 950 jobs. That plan combined with the one announced today will reduce the total number of Polaroid employees worldwide to approximately 5,500 by the end of 2002.

DiCamillo acknowledged that the Polaroid core instant business is experiencing steeper declines than projected due to the soft economy and the competing growth of digital imaging. He said the restructuring plan is consistent with Polaroid’s new two-part business model to: (1) manage the company’s core instant products for cash and profitability; and (2) develop an instant digital printing business with significant opportunity for double-digit growth.

Polaroid introduced this new business model on May 31 at a meeting with investors in New York, where Ian Shiers, executive vice president – worldwide sales and marketing, previewed steps the company would take to compete in the digital future.

“Our infrastructure clearly is too big, and the changes in our business require a significant reduction of our cost base in line with our conservative revenue expectations for the next two to three years,” he said in New York. Today’s announcement supports that premise and puts Polaroid in a solid position to meet the short-term financial targets that Shiers outlined:

• Gross margins in the low 40’s as a percentage of sales
• Overhead around 30 percent of sales
• Double-digit operating margins
• Improved cash flow through strong EBITDA and a focused reduction of working capital and capital expenditures.

Second Quarter

Polaroid continues to focus on cash generation as its top 2001 priority. Cash flow for the quarter is ahead of plan due to asset sales and reductions in working capital and capital expenditures. Operating results for the second quarter, however, are likely to be in the area of the operating loss reported in the first quarter, excluding potential one-time charges and real estate gains.

Polaroid has today announced two new “revolutionary” digital printing platforms. Opal is a two sheet thermal print medium with fast print speed and long lasting characteristics is aimed at home and retail users. Onyx is a single sheet thermal print medium designed to be used in mobile applications such as PDAs, mobile phones or one-off printers. Expect to see devices based on Onyx technology by the end of this year and Opal in 2002.

Press release:

Polaroid Announces Revolutionary Digital Printing Technologies

Outlines New Model for Instant and Digital Businesses

NEW YORK and CAMBRIDGE, Mass., — May 31, 2001 – Polaroid Corporation (NYSE: PRD) today announced two new digital printing technologies that are poised to shape the future of imaging for consumers and commercial users. Code-named “Opal” and “Onyx,” the printing platforms are central to Polaroid’s digital strategy and mark a dramatic shift from the company’s heritage in silver halide-based film. The technologies and the company’s new business model were revealed today at a meeting for the investor and media communities at The Digital Sandbox in New York.

“The Opal and Onyx technologies will revolutionize how we move digital images from pixels to prints,” said Gary T. DiCamillo, Polaroid’s chairman and chief executive officer. “These are real game changers – true innovations that will set new standards for instant digital printing quality, mobility and affordability. They offer 35mm quality in a digital print, with speed and simplicity unrivaled by current print options. We expect Opal and Onyx technology to have application to a variety of mobile printing requirements, but also to meet new requirements for retail kiosks, microlabs and a new generation of home photo printers. What’s more, Polaroid will open these technologies to a variety of partners to bring digital printing products to market in many different forms.”

Opal and Onyx: The Future of Instant Digital Printing

The Opal and Onyx platforms have been developed by a dedicated research and development team at Polaroid over the past two years. To the surprise of some industry analysts, Opal and Onyx represent a break from the company’s heritage in silver halide-based media, and instead are based on thermal print technologies. Designed as an open architecture platform, the technologies feature speed, mobility, affordability and quality, making them ideal for a range of applications from mobile printing and dedicated home printers to commercial kiosk and microlab use.

Dr. Samuel H. Liggero, vice president of media research and development, has spearheaded the development of Opal and Onyx. Citing the limitations of existing digital printing technologies, such as dye diffusion thermal transfer (D2T2), thermal wax and inkjet, Liggero lauded the speed, quality and versatility of Opal and Onyx describing them as the most significant technologies to be developed by Polaroid in many years. “Opal can be optimized to produce 35mm-quality prints at the rate of 50-to-60 per minute,” he said.

About Opal and Onyx

Polaroid’s “Opal” technology is a two-sheet, thermal print medium that combines the best of traditional thermal transfer and inkjet technologies to generate photographic-quality color prints. Opal’s high image quality and stability, combined with fast print speed, make it an optimal technology for dedicated home photo printers or the retail photo finishing environment.

Onyx is a single-sheet, thermal print media that features versatility and mobility, combined with very affordable cost. Because of this, Onyx can be deployed in a variety of consumer and commercial applications, such as mobile printer extensions for PDAs and wireless phones; mobile printers for one-time items; and in-dash printers for GPS and mapping systems in automobiles.

New Business Model

DiCamillo stated that Polaroid is poised to create a new standard in digital printing – making it simple and fast without compromising quality. Opal and Onyx emphasize speed, stability and affordability, and their open platforms create new opportunities for Polaroid to team up with other businesses. “These two printing platforms will form the building blocks of our digital imaging business strategy,” said DiCamillo. “Polaroid is entering an era marked by alliances, partnerships and open architecture, and our digital printing business will fit into that model. Polaroid will concentrate on its strengths – brand equity, product innovation, well-developed trade channels and promising intellectual property – but we’ll work with others to develop product applications and new products.”

DiCamillo acknowledged the decline in film sales faced by Polaroid and other traditional photographic companies as the imaging industry migrates to digital. He said the company is managing that decline to support both its debt reduction and its new instant digital printing business. According to DiCamillo, “Polaroid has reached the time for change and it’s driven by the exponential growth of digital imaging – the same force that is both eroding our traditional business as it ironically helps build a new foundation for the future.”

DiCamillo outlined the company’s new two-part business model. First, Polaroid will continue to support its traditional instant film business, which, despite declining sales, will be managed to generate healthy margins and cash flow for a number of years. Second, and most significantly, Polaroid has created a new instant digital printing business focused on the Opal and Onyx technologies, which are designed for growth and partnerships.

DiCamillo emphasized that Polaroid will continue to generate a steady flow of new products and that innovation will drive both sides of the business. “New products will continue to play a central role in Polaroid’s future. That’s why we’re here today,” he said.

Market Strategy

Sandra B. Lawrence, senior vice president and general manager of instant digital printing, said that Polaroid plans to bring the Opal and Onyx technologies to market with a variety of business partners. “We will not face the future alone. Business models for the new digital age require a very different mindset. Partnerships must be formed across technologies and platforms – even across industries. Opal and Onyx are steps in that direction and we’re actively working with companies who share our vision to leverage these new technologies, and to provide everyday consumers with new and inventive ways to print digital images instantly – anytime, anywhere.”

Lawrence explained, “Our major research expenses are behind us. And we are confident about a variety of consumable products with margins capable of ranging from 40 to 60 percent or more.”

Lawrence discussed how the game-changing technologies of Opal and Onyx will be brought to market and help drive the migration from analog to digital printing. Recognizing the convergence of computer, telephonic and imaging industries, all of which are migrating to real-time, wireless standards, she said, “The opportunities for our Opal and Onyx technologies in retail, home and mobile digital printing are tremendous. Together, these new digital printing opportunities could create a billion-dollar revenue opportunity for Polaroid and its partners by 2005. Polaroid will focus on its intellectual property and particularly its high-margin output consumables, all leading to a double-digit operating profit target.”

Lawrence said that the Onyx technology is a perfect fit for the wireless industry and that so far Polaroid is negotiating terms for Onyx-based partnerships with two Fortune 500 companies that play in the wireless space. She said the company expects to make formal announcements this summer.

Managing the Existing Business

Ian Shiers, executive vice president, worldwide sales and marketing, summarized the current alignment of Polaroid’s instant business and outlined some short-term financial objectives. “Our consumer products are divided into end-user groups that target teens, young adults and adults with both film and digital products. These products represent about 55 percent of our 2000 revenues. The remaining 45 percent of our revenues comes from our commercial business, which includes passport photography, professional photography, analytical and technical imaging and business imaging applications,” he said.

Shiers indicated that Polaroid must reduce the size of its infrastructure to manage changes in its business. “This requires a significant reduction of our cost base, in line with our revenue expectations for the next two-to-three years,” he said.

Shiers acknowledged that the Polaroid core business is not growing, but said it holds potential to become more profitable. “Our new model is built on conservative revenue expectations for the next two-to-three years. Our targets are: gross margins in the low 40s; overhead around 30 percent of sales, and double-digit operating margins. We are projecting improved cash flow generation, through improving EBITDA combined with a focused reduction of working capital and capital expenditures. We intend to accomplish all this within two years,” he said.

Shiers noted that Polaroid will reconfigure its manufacturing operations to match substantially lower volume. “This right-sizing is critical for maintaining our gross margin in the low 40s. Today we have more than 25,000 unique product identification codes and we plan to rationalize a substantial number of these products. We will complete this review within 90 days,” he said.

Opal and Onyx Plans

Polaroid plans to introduce the first Polaroid-branded Onyx consumer product by the end of this year and the first Opal products in 2002.

PMA 2001: Polaroid have launched lots of new products at the PMA in Orlando. The ones that may be of interest are the PhotoMAX MP3 Digital Camera, PDC 2300Z (2.1 megapixel), PhotoMAX Digital Picture Frame (5 x 7-inch LCD screen).

Polaroid Launches Four New Products: PDC 640 Modem Camera, SprintScan 120, Polaroid I-Zone Convertible Instant Pocket Camera with Changeable Faceplates and All-New Spectra Instant Camera –

ORLANDO, Fla. and CAMBRIDGE, Mass., Feb. 9 /PRNewswire/ — Polaroid Corporation (NYSE: PRD – news) will debut four new imaging products at the upcoming 2001 Photo Marketing Association International Annual Convention and Trade Show (PMA), February 11 – 14, at the Orange County Convention Center in Orlando, Fla. The new product lineup includes the PDC 640 Modem Camera, Polaroid I-Zone Convertible Instant Pocket Camera with Changeable Faceplates, SprintScan 120 Medium-Format Digital Film Scanner, as well as a sleek, new compact Spectra Instant Camera.

“Our mission for the coming year is to continue to develop innovative digital, conventional and instant imaging products that can be used at home, work or play,” said Gary T. DiCamillo, chairman and chief executive officer, Polaroid Corporation. “At PMA, we will showcase a wide range of new products that speak to our 2001 mission and demonstrate the breadth and versatility of our product offerings and solutions — for both consumers and business users.” The following products will make U.S. debuts at PMA:

• PDC 640 Modem Camera — This new image capture and sharing device enables instant transfer of photos to the Internet without the need for a PC. Ideal for traveling business professionals or consumers on the go, the Polaroid PhotoMAX PDC 640 Modem Camera is a full-featured 640 x 480 resolution digital camera with a built-in 56.6K modem. Availability is expected in April 2001, and the suggested U.S. retail price is $249.99.
• Polaroid I-Zone Convertible Instant Pocket Camera with Changeable Faceplates — The latest version of the world’s best-selling camera* lets teens match their cameras to their moods or outfits using snap-on faceplates in a variety of colors. The camera is available for a suggested U.S. retail price of $29.99. It comes with two sets of faceplates, batteries and a free photo tree for displaying pictures. Additional faceplates will be sold for $2.99. The new I-Zone Convertible Instant Pocket Camera with Changeable Faceplates is expected to be available in stores in March.
• Spectra Instant Camera — Available in stores by early April, Polaroid’s all-new Spectra Instant Camera pairs contemporary styling with innovative compact design. Offering wider angles of viewing and two manually selected focus zones, the sleek, silver, folding camera is portable — measuring only 5.3-inches wide, 7-inches deep and 2.6-inches high. Ideal for consumer and professional usage, the new Spectra Instant Camera has a suggested U.S. retail price of $89.99 and is compatible with Spectra film.
• SprintScan 120 Medium-Format Digital Film Scanner — With a true optical resolution of 4000 dpi, the newest addition to the award-winning SprintScan line is the highest resolution medium-format digital film scanner on the market, as well as the first to produce 6 x 6 cm scanned images in under two minutes. Available this month, the SprintScan 120 ships with Polaroid PolaColor Insight Pro Software at a suggested U.S. list price of $2,795.

Other new products featured at PMA include:

• P-500 Digital Photo Printer — The first truly mobile photo printer allows photographers to print images anywhere, anytime without a computer by inserting a CompactFlash or SmartMedia card (with included adapter) directly into the printer, choosing the desired image and pushing a button for instant full-color prints in 20 seconds. Available in stores nationwide, the suggested U.S. retail price of the P-500 is $249.
  
• PhotoMAX Digital Picture Frame — The PhotoMAX Digital Picture Frame allows digital photographers to share their images easily and inexpensively with friends and family — who do not have access to a personal computer. Photographers first send their digital images to the Polaroid Web site (PolaroidDigital.com); it relays them to the frame, which displays the images in full, bright color on a 5 x 7-inch LCD screen. With a suggested U.S. retail price of $249.95, the PhotoMAX Digital Picture Frame is now available in stores nationwide.
• PhotoMAX MP3 Digital Camera — This multipurpose appliance allows consumers to listen to music and capture images. This camera enables users to upload images to their computers, make a montage or greeting card with special effects – and e-mail to friends. The suggested U.S. retail price for the complete PhotoMAX MP3 Digital Camera kit is $249.95. The camera is currently available at select retailers nationwide.
  
• PDC 2300Z Camera — The PDC 2300Z is the first two-megapixel digital camera produced by Polaroid for the consumer market. The most technologically advanced digital camera in the Polaroid PhotoMAX line, the camera produces photo-quality images with 2.3 megapixel resolution and a 2.3x optical zoom lens. With a suggested U.S. retail price of $399, the camera is available nationwide.
  
• PolaroidDigital.com — The latest Polaroid Web site provides practical information and fun features that help consumers facilitate sharing of digital photographs with friends and family. The site serves as a comprehensive online resource, where users can send personalized greetings, post photos to an auction site, and create a personalized online photo album accessible for selected others. Creating a PolaroidDigital.com account is free and easy to implement, and most all of the site’s services are free.
  
• Polaroid I-Zone Webster — This one-of-a-kind portable mini photographic scanner allows consumers to scan their I-Zone Instant Pocket Camera photos or other small objects and post them directly to the I-Zone Web site (www.i-zone.com). Teens can then take advantage of the Web site’s customized areas to store or edit pictures; make collages; play games; and communicate with their friends. The product also comes with Arcsoft PhotoImpression 2000 software. The suggested retail price of the Webster is $49.99. It is available at mass market, photo specialty and select toy stores in the United States.
  
• Polaroid I-Zone Digital & Instant Combo Camera — This product propels the number-one selling Polaroid I-Zone Instant Pocket Camera into the digital domain. The combo camera is a 2-in-1 camera that allows consumers to take instant photo-stickers or high-quality digital photos. Tech-savvy teens who are hooked on the original I-Zone camera can now enjoy the flexibility of access to the Web-friendly format of digital photography. The camera also provides direct access to an online community at www.i-zone.com and includes Arcsoft PhotoImpression 2000 software for editing digital photos with more than 30 special effects. The suggested U.S. retail price is $99.99.
  
• Studio Polaroid Digital (SPD) 360 — An all-digital, self-contained, mini-portrait photographic system, the 1.4 megapixel SPD 360 is the latest addition to the Studio Polaroid product line. Ideal for portrait, passport and ID photography, the SPD 360 combines the benefits of digital technology with instant film. The suggested U.S. list price of the SPD 360 is $1,899

CES 2001: Polaroid has announced several new digital imaging products at the CES this year: the P-500 mobile digital photo printer, the PhotoMAX Digital Picture Frame (5×7″ screen) the PDC 2300Z 2.3 megapixel, 2.3x optical zoom digital camera and the PhotoMAX MP3 digital camera which can shoot VGA (640 x 480) and play MP3′s.

Press release:

Polaroid Introduces New Instant Digital Imaging Products at 2001 International Consumer Electronics Show

World’s Instant Imaging Leader Combines Heritage in Instant with Digital Technology for “Anytime, Anywhere” Capture, Share and Output

LAS VEGAS, Nev. and CAMBRIDGE, Mass., – January 5, 2001 – Polaroid Corporation, the worldwide leader in instant imaging, will unveil a myriad of digital products that deliver on the company’s vision for the future of photography and image sharing at the upcoming 2001 International Consumer Electronics Show, January 6-9 in Las Vegas. Seamlessly linked to the Internet via PolaroidDigital.com, the company’s new products – the Polaroid Digital Picture Frame, MP3 Digital Camera, 2300Z digital camera – and existing digital cameras will enable users to capture, manipulate, and share images simply, inexpensively and from virtually any location. The addition of the P-500 Digital Photo Printer to the Polaroid lineup now allows for wireless printing anytime, anywhere. Later this year Polaroid will introduce a digital modem camera, eliminating the need for personal computers as a critical link in sharing and printing digital images.

The products let users capture photos rapidly and simply – hallmarks of Polaroid’s line of digital products. Polaroid now provides users with several choices once they capture an image, including:

• Uploading the photos to a secure Website – PolaroidDigital.com, which serves as the hub for storage or sharing
• Sending images to the Polaroid Digital Picture Frame for sharing and display
• Printing the images on the P-500 Digital Photo Printer, the first mobile, portable printer that uses instant film.

Each of the components functions independently as well. For example, the Polaroid Digital Picture Frame may reside in a home or office, where it will automatically receive downloaded images from PolaroidDigital.com once a day via a phone line. (The frame also offers a selection of information from the Internet, including weather reports, winning lottery numbers and daily horoscopes.) The P-500 is compatible with a wide range of digital cameras, enabling users to insert a memory card and print instant digital images anytime and anywhere.

“Polaroid’s overarching vision has been to combine its rich heritage in instant imaging with the future of digital,” explained Polaroid Chairman and Chief Executive Officer, Gary T. DiCamillo. “We are delivering on this goal by focusing on innovative, customer-focused products that will build Polaroid’s presence in the burgeoning digital imaging market. Polaroid is answering the question about the role of film in digital imaging with the launch of the P-500, which integrates instant film with digital images. DiCamillo added, “With the Polaroid Digital Picture Frame, Polaroid has ensured that anyone may have access to images via the Internet, without needing to use a personal computer. This is a crucial step in the evolution of information exchange via the Internet.”

MAJOR NEW POLAROID PRODUCTS/SERVICES LAUNCHING AT CES:

• P-500 Digital Photo Printer – The first truly mobile photo printer. The P-500 allows photographers to print images anywhere, anytime without a computer. Simply insert a CompactFlash or SmartMedia card (with included adapter) directly into the printer, choose the image or images you want to print, and push a button for instant full color prints in about 20 seconds. In addition, the P-500 is compatible with all Polaroid PhotoMAX digital cameras, as well as a majority of other digital cameras currently on the market.
   
• PhotoMAX Digital Picture Frame – The Polaroid PhotoMAX Digital Picture Frame allows digital photographers to share their images easily and inexpensively with friends and family – who do not have access to a personal computer. Photographers send their images through the Polaroid Website, PolaroidDigital.com. The frame then receives digital images from the Internet and displays them in full, bright color on a 5×7-inch LCD screen. All that’s needed is a connection to a phone line!
   
• PhotoMAX MP3 Digital Camera – A multipurpose appliance that allows consumers to listen to music and capture images! This camera allows users to upload music to the MP3 player and take 640×480. Then, users can download the images to their computer, make a montage or greeting card with special effects — and e-mail to friends.
   
• PDC 2300Z – Consumers can now have access to the high-quality digital imagery used by professionals. The PDC 2300Z is Polaroid’s first two-megapixel digital camera produced for the consumer market. The most technologically advanced digital camera in the Polaroid PhotoMAX line, the camera produces photo-quality images with 2.3 megapixel resolution and a 2.3X optical zoom lens. With a suggested list price of $399, the PDC 2300Z costs less than comparable photo quality digital cameras.
   
• PolaroidDigital.com – The latest Polaroid Website provides practical information and fun features that help consumers facilitate sharing of digital photographs with friends and family. The site serves as a comprehensive online resource, where users can send personalized greetings, post photos to an auction site, and create a personalized online photo album accessible for selected others. Creating a Polaroid Digital account is free and easy to implement, and most all of the site’s services are free.

OTHER PRODUCTS FEATURED AT CES:

• Olympus C-211 ZOOM – The first digital photo printing camera in North America. Leveraging the strengths of both Olympus and Polaroid, the product is a “filmless” digital camera that has a built-in instant photo printer. Users can produce digital instant prints on silver halide film – anytime and anywhere – without the need for a computer. In addition to personal use, the technology is useful for a wide range of professional applications including insurance, health care, law enforcement, real estate and construction.
   
• Polaroid I-Zone Webster – A one-of-a-kind portable mini photographic scanner that allows users to “scan” their I-Zone Instant Pocket Camera photos and post them directly to the I-Zone Website (www.i-zone.com). Simply place the Webster over an item, press the button and store the image. With a few convenient cable hook-ups, images are transferred directly to the Web. Teenagers and other users can then take advantage of the Website’s customized areas to store or share pictures; make collages, photo movies and games; and communicate with their friends.
   
• I-Zone Digital & Instant Combo Camera – This product propels the number-one selling Polaroid I-Zone Instant Pocket Camera into the digital domain. The combo camera is a 2-in-1 camera that allows users to take instant pocket photo-stickers OR high-quality digital photos. Tech-savvy teens who are hooked on the original I-Zone can now enjoy the flexibility of access to the Web-friendly format of digital photography. The camera also includes software that enables users to modify digital photos through more than 30 special effects, including email, photo editing and photo collage features.

POLAROID @ HOME @ WORK @ PLAY EXHIBITION LOCATION:
Polaroid’s CES exhibition booth is located at: 2827 Las Vegas Convention Center (LVCC), South 1&2 – more – Polaroid/CES – 4

Polaroid will be releasing new digital imaging products in the third quarter of 2000, the emphasis on ‘trendy’ offerings at low prices, bringing digital cameras to the masses. “Palmer discussed Polaroid offerings in the mobile arena, including the PhotoMAX modem camera that will allow the instant download of photos to the Internet via a phone line. Palmer also highlighted a digital photo printer, which will take advantage of emerging wireless technology to allow printing and transferring images on the go, and a digital printing camera, which will produce instant prints of digital images. Both are currently scheduled for release in the second half of 2000. “

Polaroid press release:

Polaroid Highlights Digital Strategy

Showcases Digital Products Slated for Third Quarter Release

CAMBRIDGE, Mass., — July 14, 2000 – Gary T. DiCamillo, chairman and chief executive officer of Polaroid Corporation (NYSE: PRD), today outlined the company’s digital strategy and the lineup of digital products scheduled for release during the second half of 2000.

DiCamillo and other Polaroid executives shared their plans with the media at the company’s headquarters in Cambridge, Massachusetts. “Digital cameras were clearly the highlight of the first half of 2000. During the second half of the year, we will release new digital photo printers and innovative digital scanners for a variety of users,” said DiCamillo. “Our objective is to bring the same type of innovative, easy-to-use, affordable technology to the digital space as we brought to the optical space – and that plan is already well under way.”

DiCamillo reaffirmed three critical components, first made public earlier this year, that comprise the Polaroid digital strategy. First, leverage the company’s core instant picture technology platform in the digital marketplace. Second, stake out a position in the mobile, digital and wireless markets offering fast, easy and affordable input and photo printing solutions. Third, utilize the Internet and other value-added features and services to enhance customer relationships, particularly with “Generation Internet” (Gen-I) and with commercial users.

Polaroid has aggressively implemented this digital strategy to capitalize on projected growth of the Internet and wireless technology. Industry analysts predict rapid growth over the next five years for a variety of technologies, including the Internet, personal digital assistants, set top boxes, streaming video and mobile cellular, fueling a need for instant communication with digital images.

Polaroid strengthened its Internet offerings earlier this week with the launch of a business-to-business Web site. The site, polaroidwork.com, is designed to provide imaging solutions to end users from law enforcement to medical professionals. On the consumer side, the September launch of the I-Zone web site will provide an online community for Gen-I customers.

Leading Edge Digital Technology at Affordable Prices

Showcasing the breadth of both current and future Polaroid product offerings at today’s meeting were Larry Swensen, director of marketing for consumer digital products, and Tim Palmer, vice president for consumer and business imaging.

Swensen highlighted the broad range of consumer digital cameras Polaroid has released in 2000 and previewed those scheduled for release later this year. New offerings include an MP3 digital camera that will bring multimedia technology to mobile, trend-setting young consumers. The product, slated for launch by the end of the year, features a 640 x 480 resolution digital camera with MP3 storage and playback capability. Also on tap for later this year is the Polaroid Digital 2300Z, a 2.3 megapixel camera with 2x optical zoom, available to consumers in November at a competitive retail price of $399.95. The 2300Z will provide the most sophisticated features and best resolution of the Polaroid consumer digital camera line.

With its PhotoMAX line of affordable, easy-to-use digital cameras aimed at the mass market, Polaroid already is a leader in the consumer digital imaging space. Starting at a retail price of only $59.95 with the PhotoMAX Fun! Digital 320, the company’s current consumer digital camera line includes five of the top 10 digital cameras in the mass merchandising channel, according to ACNeilsen data. Earlier this year, Polaroid bolstered the strength of its digital line with the release of a number of new digital products, including the PhotoMAX PDC 1100, the company’s first megapixel camera.

Palmer discussed Polaroid offerings in the mobile arena, including the PhotoMAX modem camera that will allow the instant download of photos to the Internet via a phone line. Palmer also highlighted a digital photo printer, which will take advantage of emerging wireless technology to allow printing and transferring images on the go, and a digital printing camera, which will produce instant prints of digital images. Both are currently scheduled for release in the second half of 2000.

“These products will appeal to technology savvy, wired consumers,” said Palmer. “Both are compact and convenient, features that are critically important to our target market.”

Rounding out the company’s new digital offerings are additions to the highly successful I-Zone line. The Polaroid I-Zone Webster, a handheld device that instantly digitizes I-Zone pictures directly into a PC, will be launched this fall. Again targeting the Gen-I demographic will be the company’s Pocket Combo Camera, a pocket-sized digital camera that also produces instant film pictures, to be introduced in the next few months.

“Polaroid has a deep commitment to leverage our technology heritage to make highly complex technology easy-to-use and affordable for everyone,” said DiCamillo. “These products are great examples of how we intend to leverage our imaging know how and capture a variety of opportunities in the digital and wireless arena.”

Foveon has today issued a press release announcing the F19 1/1.8″ Type CMOS ‘Direct Image Sensor’. This press release essentially puts a name to the sensor to be used in the Polaroid x530 digital camera which was announced at PMA. As with previous X3 sensors the F19 captures three individual colors (red, green and blue) for each pixel location, in this case 1440 x 1080 x 3 layers. Hence this new chip is being labelled as a ’4.5 Megapixel CMOS Direct Image Sensor’. This sensor is also designated to be used in the new HanVision HVDUO-5M digital camera which is aimed at industrial, scientific, medical, and communications applications.

Press Release:

FOVEON INTRODUCES THE FIRST SMALL FORMAT FULL-COLOR IMAGE SENSOR

4.5 Megapixel Direct Image Sensor Brings Revolutionary Patented Foveon X3 Full-Color Technology to Medical & Science Applications
Captures Color Like Film in 3 Layers

Santa Clara, CA, June 21, 2004 – Foveon Inc., a technology leader of award-winning high-quality digital camera image sensors, announced today the availability of the Foveon F19 sensor (FO18-50- F19), a 1/1.8-inch 4.5 Megapixel CMOS direct image sensor that incorporates Foveon’s breakthrough X3 technology to directly capture color in three layers, just like film. The company also announced that the F19 image sensor has been designed into the HanVision HVDUO-5M digital camera for industrial, scientific, medical, and communications applications.

Advanced Design of Foveon X3 Direct Image Sensor

The F19 direct image sensor employs Foveon’s unique X3 stacked-pixel design. Each stack of pixels contains a red, green, and blue pixel, eliminating the need for color interpolation and blur filters which are required for conventional CCD and CMOS image sensors. Color interpolation is used by CCD and CMOS image sensors to estimate the missing color information inherent in these image sensors, which only have a single layer of pixels. Blur filters are also used in CCD and CMOS image sensors to eliminate the color artifacts, which are introduced as part of the color interpolation. The Foveon X3 F19 direct image sensor avoids these image quality compromises by utilizing the X3 stacked pixel design. As a result, the Foveon X3 F19 sensor delivers the highest degree of full color, image sharpness, and artifact-free color detail possible with a 1/1.8-inch image sensor.

Variable Pixel Size Technology

The new Foveon F19 sensor also features Foveon’s powerful VPS (Variable Pixel Size) technology. VPS groups neighboring pixels together to form larger pixels that are optimal for high frame rate, reduced noise, and dual mode still/video applications. Other advanced Foveon F19 features include low fixed-pattern noise, ultra low power consumption, and integrated digital control.

New Camera for Scientific and Industrial Markets

Foveon also announced today that the F19 direct image sensor has been designed into the HanVision HVDUO-5M, a digital camera designed for industrial, scientific, medical and communications applications. Boasting 30-bit digital color output, real-time color processing, support for still and video sensor scan modes, and a CameraLink interface, the HanVision HVDUO-5M was made for applications needing exact color detail and flexible readout options. The camera is compatible with a wide range of C-mount optics and frame grabbers. It includes an automatic internal dark-frame shutter mechanism and controls for synchronized illuminators for flexibility in exposure control.

Current Line of Digital Cameras Using the Foveon X3 Direct Image Sensor

• Sigma SD9 – The first digital camera to use the Foveon X3 F7 direct image sensor. The 10.2 megapixel image sensor won awards and accolades in the photography community.
   
• Sigma SD10 – The first camera to incorporate the Foveon X3 F7N. The 10.2 Megapixel F7N direct image sensor is the second generation X3 image sensor, which increased the ISO range from 100 to 800, and added an extended mode option to ISO 1600. In addition, exposure durations were increased to 30 seconds for better low-light photography – important for the pro market.
   
• The Polaroid x530, (available in September 2004), – will be the first point & shoot consumer digital camera to showcase the new F19 chip with Foveon X3 technology. Affordably priced at only $399, the Polaroid x530 has a modern retro look with the advanced Foveon sensor inside.

About Foveon X3 Direct Image Sensors

Foveon X3 image sensors are the world’s only direct image sensors, which capture red, green, and blue light at every pixel location, and are the first image sensors that leverage silicon’s inherent color separation property. When silicon is exposed to light, blue light is absorbed near the surface, green light is absorbed in the middle, and red light is absorbed deep within the silicon. Pixel sensors are stacked at the corresponding depths within the silicon so that red, green, and blue light is captured for each pixel location.

Other image sensors on the market such as CCD and CMOS image sensors have only one layer of pixels and use colored filters to capture a single color per location, resulting in color artifacts and image blurring. Foveon X3 technology is highly scalable for a wide range of cameras including digital still/video cameras, PDAs, cell phones, security cameras, and scientific cameras.

Pre-PMA 2004: Foveon today announced that Polaroid’s new x530 digital camera will use a 1/1.8″ size X3 Direct Image Sensor. The x530 will have a three times optical zoom lens and is designed around a typical point-and-shoot digital camera body, similar to the Canon A70. The sensor used is Foveon’s ‘X3 5M’ Direct Image CMOS Sensor (three layers of 1.5 million pixels each) which is the industry standard 1/1.8″ Type size (7.1 x 5.3 mm effective). In a big step forward for Foveon the x530 can now produce JPEG images in-camera.

Phil: I’m glad to see the X3 sensor making its way into a consumer camera, although we will have to see how this camera can compete against the plethera of cheap four and five megapixel consumer cameras. I’m looking forward to seeing the output from the camera.

Click here for more information on the X3 5M Direct Image Sensor

Exclusive images

Disclaimer: the images below are of an x530 design model, essentially a hollow case intended to give an impression of the final dimensions and layout of the camera. Of course the final camera’s finish quality and exact detailing will be different / better than this.

Press Release:

NEW POLAROID X530 POINT-AND-SHOOT DIGITAL CAMERA
USES FOVEON X3 DIRECT IMAGE SENSOR

Anticipated arrival of consumer camera with advanced technology due in 2004

LAS VEGAS, Nevada, February 11, 2004 – Foveon Inc., a technology leader in high-quality digital image capture products, announced today that a new Polaroid brand digital camera will incorporate the 4.5 megapixel Foveon X3 direct image sensor. The camera is the world’s first point-and-shoot digital camera to incorporate X3 technology. Foveon X3 direct image sensors are the only image sensors that directly capture color in three layers, just like color film. This results in richer colors, warmer tones, and sharper images than are available through traditional image sensors.

First introduced in 2002, the X3 image sensor has only been available in a professional class digital camera. Now with the introduction of the Polaroid x530, consumers are able to enjoy the many benefits of X3 technology in an affordable full-featured point-and-shoot digital camera. The Polaroid x530 is scheduled to ship to retailers in June 2004 with a suggested retail price of $399.

The Foveon technology enables the Polaroid x530 digital camera to produce superb 8” x 10” images – the largest print size that most consumers will print. The camera takes advantage of several key features of the X3 direct image sensor including X3F raw file format image capture, video clip capture at VGA resolution, and Foveon’s recently introduced X3 Fill Light software. The X3 Fill Light software tool digitally simulates the photographic method of “dodging and burning” adding extra light to shadow regions, while preserving highlight detail. It is a powerful method for simultaneously adjusting overexposed and underexposed areas of a digital image with a single simple control.

Foveon has received numerous technical awards and recognition including: Popular Science’s Best of What’s New Award, Time Magazine’s Best Inventions of the year, the European Imaging and Sound Association (EISA) award and the Technical Image Press Association (TIPA) Award. The Polaroid brand x530 digital camera is made by World Wide License Ltd under exclusive license by Polaroid and distributed in the United States through Uniden America Corporation. Information about the Polaroid x530 digital camera can be found at www.polaroid-digital.com.

About Foveon and X3 Direct Image Sensors

Since its establishment in 1997, Foveon has focused on the development of image capture technologies and products for digital cameras. The company’s X3 direct image sensors are the only image sensors that directly capture red, green, and blue light at every point in an image. The design of the X3 direct image sensor leverages the natural color separation property of silicon. When silicon is exposed to light, blue light is absorbed near the surface, green light is absorbed deeper, and red light is absorbed deepest within the silicon. In Foveon X3 direct image sensors, pixels are placed at these corresponding depths in the silicon to detect the red, green, and blue light that has been absorbed. This stacked-pixel design ensures that all of the color is captured at every point in an image.

In contrast, the traditional CCD and CMOS image sensors used in today’s digital cameras capture only one color per pixel location and must mathematically interpolate the two colors not detected. This interpolation process results in false colors, reduced color resolution and color artifacts.

Foveon X3 technology is highly scalable for a wide range of cameras including digital still/video cameras, PDAs, cell phones, security cameras and scientific cameras.

Just two weeks ago Kodak announced a range of new / improved CCD’s. Today the NY Times (online) is carrying a story of a new prototype camera from Foveon which also sports a 16 megapixel imager, this time a CMOS device at a considerably lower price (according to them) than the Kodak device. They say “…able to capture digital images with a resolution of 4,096 by 4,096 picture elements – or pixels – per square inch. That, by some measures, is about twice the resolution of 35-millimeter film.”

NY Times article:

Low-Price, Highly Ambitious Digital Chip

Suddenly the future of digital photography seems to be becoming much clearer.

Only two weeks ago, Eastman Kodak announced a chip able to capture digital images with a resolution of 4,096 by 4,096 picture elements — or pixels — per square inch. That, by some measures, is about twice the resolution of 35-millimeter film.

Today, a company founded by one of Silicon Valley’s pioneer chip designers, will announce an image-sensing chip capable of the same resolution as the Kodak chip, but made using a technique that could be much less expensive.

Executives of the company, Foveon, said they had given a prototype camera based on their chip to a photographer in Los Angeles, Greg Gorman, who had used it to make a portrait of a cowboy. In that image, no pixels, or dots, were visible to the eye, even with the photograph blown up to a size of 8 feet by 4 feet.

Already, digital cameras being sold on the consumer market for less than $1,000 are rivaling 35-millimeter film cameras. Digital images of the clarity achieved with Foveon chip could begin to challenge even the much more expensive 4-by-5 film cameras made by companies like Hasselblad that are used by professional photographers for portraiture, advertising and fashion.

“We’re headed to flat-out replace the film camera,” said Carver Mead, the founder of Foveon, which is based in Santa Clara, Calif. Mr. Mead, a pioneer of the chip industry, became a Silicon Valley legend in the 1970′s by helping develop techniques that for the first time enabled chip engineers to create circuits containing tens of thousands of transistors.

Industry analysts say that the new technologies could affect much more than still cameras. High-resolution images, if produced in quantities that made the new generation of image-sensing chips cost only several dollars apiece, could become a staple of cellular telephones and other hand- held devices and might bring the cost of a consumer video camera below $100.

And the contest is not only between film and digital sensors, but between two kinds of chip-making techniques. Foveon’s planned announcement, coming on the heels of Kodak’s, suggests a sharpening battle between the two competing manufacturing technologies at the heart of a billion- dollar market for digital photographic sensors.

The Foveon chip is based on a low- cost semiconductor industry technology known as Complementary Metal-Oxide Semiconductor, or CMOS (pronounced SEE-moss). The Kodak chip’s sensor is based on a more expensive manufacturing technology known as Charged Coupled Device, or C.C.D. imaging.

C.C.D.’s now dominate the digital- imaging industry, but compared with CMOS devices, they require production and assembly of several chips and related components to combine the sensing and computing tasks that can be performed by a single CMOS chip.

Both companies’ achievements have startled industry experts because the new devices move far beyond the current industry standards for CMOS and for C.C.D. cameras, which until now have been able to achieve resolutions of 6 million pixels a square inch. The Foveon and Kodak sensors can pack 16.8 million pixels into a square inch.

“If you asked someone if this was achievable in either technology two weeks ago, they would have said it was impossible,” said Michael Berger, an industry analyst at Frost & Sullivan, a market research firm in San Antonio.

The Foveon announcement is seen as a personal triumph for Mr. Mead, 66, who is regarded by many executives and engineers as the father of the modern semiconductor industry.

“Carver has tapped into something enormous,” said Alexis Gerard, president of Future Image Inc., a digital-imaging research and consulting firm in San Mateo, Calif. “When digital imaging and the telecommunications infrastructure converge, they will enable a shift from a text-based communication model to an image-based model.”

Throughout his career Mr. Mead has explored the idea of duplicating the human senses, including vision and hearing, by using silicon-based chip technologies. Several years ago, his earlier work led to the development of a smaller and more effective hearing aid now sold by Sonic Innovations of Salt Lake City.

Complex chips first became feasible in the 1970′s after Mr. Mead, at the time a professor at the California Institute of Technology, teamed up with a Xerox computer scientist named Lynn Conway to invent a technique for placing thousands of transistors on a chip — a technique known as Very Large Scale Integrated Circuit, or VLSI design.

Today, CMOS-based manufacturing — which is used to carry out VLSI design — is employed by virtually all microprocessor and memory makers. As a result, it has become extremely cost-efficient and can yield circuitry with more transistors and lower power requirements than most competing technologies.

Yet despite their promise, CMOS- based sensors have until now had just a tiny impact on the overall market for digital imaging because they have been unable to achieve the resolution and clarity of C.C.D. sensors. The global market in 1999 for C.C.D. sensors was $959 million, compared with only $14.2 million for CMOS sensors, according to Frost & Sullivan.

But even before Foveon’s latest achievement, CMOS was gaining ground. Not only have companies including Kodak and Polaroid begun to offer inexpensive, low-resolution CMOS-based cameras, but telecommunications giants like Nokia of Finland and NTT DoCoMo of Japan are planning to include inexpensive CMOS sensors in millions of their next-generation cellular phones.

Foveon’s contribution has been to improve the quality of CMOS images by continuing to put more computer processing power behind the task of capturing the digital image. The new 16.8 million pixel device has seven active transistors for each pixel. The benefits include less interference, better focusing and more precise exposure times. “When the pixels get smarter,” Mr. Mead said, “that translates into better image quality.”

Foveon’s principal investor and the company’s technology partner is National Semiconductor, a big Silicon Valley chip maker.

National Semiconductor’s manufacturing plant in Santa Clara is capable of etching chip circuitry only 0.18 micron wide — a microscopic fineness that few other chip makers can equal. By contrast, most current low-cost CMOS sensors are made with circuitry of 0.35 or 0.5 microns, which allows for millions fewer transistors per chip.

National Semiconductor executives said the company was planning to take the technology that Foveon had developed for the priciest reaches of the professional photography market and make it economical enough for some new consumer electronics.

“National’s interest is not in thousands of cameras a year but in hundreds of millions of cameras a year,” said Brian L. Halla, the company’s president and chief executive. “We could make the world’s highest-resolution throwaway digital camera and sell it for the price of a similar Kodak system.”

Foveon officials said they would demonstrate the new 16.8 million pixel sensor for the first time today. The sensor, which for now captures images in black and white, has almost 70 million transistors — or about two and a half times the number of transistors used by a Pentium III microprocessor chip for computers. Foveon says it expects the new sensor to be on the market within a year.

Currently, Foveon sells a high-end camera using an earlier version of its sensor that has a resolution of 2048 x 2048 pixels, or 4.19 million in all. That camera uses three separate sensors and a prism array to separate color information. But Mr. Halla said the company was also working on a technique that would permit a single chip to capture precise color information.

Despite the advances now being made, Mr. Mead acknowledged that digital-image sensors are still a long way from matching the skills of the human eye.

An eye is movable, which enables it to scan various parts of an image and then allow the brain to compose a single, larger image. The eye is also remarkably diverse: elements that have high resolution are clustered at the center of the field of vision, while sensing elements that function well at low light levels are around the periphery of the eye, giving human vision a great flexibility of range in varying light conditions that no artificial imaging system can yet match.

Mr. Mead said that because of fundamental size limits in the wavelengths of light, it is unlikely that future digital sensors will gain much additional resolution. Instead, shrinking semiconductor circuit sizes will make it possible for companies like Foveon to add more and more intelligence to their digital-imaging systems, perhaps simulating more of the image-enhancement functions of the human brain.