SAN FRANCISCO--Sept. 25, 2001--Epson America Inc. and Applied Science Fiction(TM) (ASF)(TM) announced today that Epson has taken an equity position in ASF, and the companies have executed a strategic alliance agreement to cooperate in the development of digital imaging technologies. Epson is the creator of high-quality, award-winning digital imaging products, and Applied Science Fiction is the creator of the award-winning Digital ICE(TM) technology, the leader of automatic photo restoration applications and the inventor of the cutting-edge digital dry film processing (Digital PIC(TM)) system. "Our relationship with Epson further strengthens ASF's position in the imaging landscape,'' said Dan Sullivan, president and CEO of Applied Science Fiction. "We're especially delighted that a market leader such as Epson has chosen to invest in ASF and our technologies. This strategic alliance agreement will enable ASF to offer the finest photo finishing solution incorporating our revolutionary Digital PIC dry film processing system for consumers and businesses alike.'' "Applied Science Fiction has developed technologies that neatly bridge the traditional and digital photography markets and are well-suited to Epson's photographic strategy as we continue to change the picture of photography,'' said John Lang, senior executive vice president and chief operating officer, Epson. "As a leader in digital imaging, Epson is excited both to make an investment in Applied Science Fiction and to work with the company's management to pursue further opportunities in digital imaging.''