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ImageX Revises 1Q Expectations, Revenue Weakness Anticipated

Press release from the issuing company

KIRKLAND, Wash., March 29 -- ImageX announced that it has revised its first quarter revenue estimates, and expects one-time charges and the impact of several new accounting standards to increase first quarter operating expenses. ImageX expects revenue for the first quarter to be approximately $12 million to $13 million, down from original guidance of $14 million. The revised outlook is due to softness in customer demand experienced since September 11, as well as a reconfiguration of the ImageX Print System sales force. "While we saw improvements in revenue in the fourth quarter, our first quarter is weaker as a consequence of lingering soft demand and a reconfiguration of our field sales staff which will be completed by mid-April,'' stated Rich Begert, president and CEO. "The new sales force will shift our focus and increase emphasis on the added value of our patented technology,'' added Begert. "The changeover in our sales force has created a temporary top-line revenue impact, but we expect that the improved sales organization will offer significant benefit in the long run. It will also support the introduction of new technology-based products, which can ultimately increase our gross margins and competitive position,'' said Begert. Operating expenses in the first quarter of 2002 will be impacted both by one-time charges related to re-negotiation of a facility lease, as well as the non-cash impacts of implementation of Financial Accounting Standards (FAS) 142 and 144. Final first quarter results will be released after market open on Thursday, May 2, 2002 at 11:00 AM ET. To participate, please use the following numbers: 877-418-9638 (US/Canada) or 706-679-3517 (international). No reservation number is required. More info at imagex.com