Strategic alliance agreement enhances ASF technologies

San Francisco, CA (September 25, 2001) - Epson America Inc. and Applied Science Fiction 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 technology, the leader of automatic photo restoration applications and the inventor of the cutting-edge digital dry film processing (Digital PIC) 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 photofinishing 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."

About Epson America
Epson offers an extensive array of award-winning image capture and image output products for the consumer, business and graphic arts markets. The company is also a leading supplier of value-added point-of-sale (POS) solutions for the retail market. Founded in 1975, Epson America Inc. is the U.S. affiliate of Japan-based Seiko Epson Corporation, a global manufacturer and supplier of high-quality technology products that meet customer demands for increased functionality, compactness, systems integration and energy efficiency. Epson America Inc. is headquartered in Long Beach, Calif. More information can be found on Epson's Web site at www.epson.com.

About Applied Science Fiction
Applied Science Fiction develops proprietary technologies for the imaging industry that link traditional photography with the digital age. ASF licenses its branded technologies through Original Equipment Manufacturers (OEMs) that provide products for the professional and consumer imaging markets.

ASF's product portfolio consists of the Digital ICE3 suite, Digital ICE, Digital ROC and Digital GEM, the individual components of the suite, and Digital ICE and Digital ROC for flatbed scanners. ASF is also the innovator in digital dry film processing, with its environmentally friendly Digital PIC technology. Digital PIC develops exposed film directly into a high-resolution RGB digital format file in minutes. Digital PIC produces an Extended Range Digital Negative (XRDN) on a CD from which photographic quality images can be easily printed. More information can be found on ASF's Web site at www.asf.com.

Digital ICE, Digital ROC, Digital GEM, Digital ICE3, Digital PIC, Extended Range Digital Negative, XRDN, ASF and Applied Science Fiction are trademarks of Applied Science Fiction, Inc. All other trade names, trademarks and registered trademarks are the property of their respective owners.

EPSON is a registered trademark of Seiko Epson Corporation.

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