PhotoMAX 640 CF Creative Kit Offers Software for Easy Image Capture and Editing Allowing Amateur Photographers to Edit and Share Photos with Ease

CAMBRIDGE, Mass., June 5 /PRNewswire/ -- Polaroid Corporation today introduced its newest consumer digital camera, the PhotoMAX PDC 640 CF, offering consumers expanded image-storage capabilities with two image resolution modes and a memory slot for a removable CompactFlash card. The Polaroid PhotoMAX PDC 640 CF Digital Camera is a full-featured 640 x 480 resolution digital camera and comes in a complete kit including software for an affordable $169.

Scheduled for retail availability this month, the PDC 640 CF Digital Camera is part of a new generation of integrated, mobile digital imaging and printing solutions from Polaroid. The PDC 640 CF Digital Camera has all of the features of Polaroid's traditional VGA digital cameras, including multiple resolution settings to optimize image storage and transfer, 2 MB of internal memory, and an LCD monitor/viewfinder that enables users to view, replay and delete images. Photos can also be uploaded instantly through our software to a personal Web page on PolaroidDigital.com, where users can create postcards and display their latest photography work.

``The introduction of the PDC 640 CF gives consumers an affordable option for capturing digital images, with greater storage capability and flexibility from the CompactFlash memory slot,'' said Craig Armstrong, director of consumer digital for Polaroid Corp. ``The kit complements these features and allows consumers many creative options for editing and displaying digital photos.''

The PDC 640 CF Camera offers multiple image resolution modes, an optical viewfinder, three flash modes and a self-timer. The camera comes complete with PhotoMAX Image Maker Software, 4 AA batteries, serial and USB cables for PC connection, and carrying pouch. The PDC 640 CF is a step up from the PDC 640 Plus, allowing ``cyber-shutterbugs'' to take their photography skills to the next level.

Pricing and Distribution

Suggested U.S. retail price for the Polaroid PDC 640 CF Camera is $169.95. The PDC 640 CF Camera will be available this month at selected major retailers, including discount stores, mass market retailers, computer and traditional photographic stores nationwide.

About Polaroid

Polaroid Corporation, with annual sales of approximately $2 billion, is the worldwide leader in instant imaging. Polaroid supplies instant photographic cameras and films; digital imaging hardware, software and media; secure identification systems; and sunglasses to markets worldwide. Visit the Polaroid web site at www.polaroid.com.

``Polaroid'', ``Polaroid PhotoMAX'', and ``PDC'' are trademarks of Polaroid Corporation, Cambridge, MA 02139. Other product names may be the trademarks of their respective owners.

Statements in this release may be forward-looking. Actual events will be dependent upon factors and risks including, but not limited to, the Company's ability to: market its core imaging products; penetrate new demographic markets; develop and implement its digital imaging strategy; compete successfully in the instant imaging market against larger and stronger competitors; manage or reduce its debt; implement its strategies to reduce costs and improve cash flow; comply with the covenants in the Amended Credit Agreement, the U.K. Credit Agreement, the indenture governing the 2002 Notes, 2006 Notes and 2007 Notes manage the impact of foreign exchange and the effects of retail buying patterns; as well as the Company's ability to manage uncertainties and risk factors, including those described from time to time in the Company's filings with the Securities & Exchange Commission, specifically, the Company's 2000 Form 10-K and its most recent Form 10-Qs.