Exhibit 99.1

# Rimage Reports Strong
Third Quarter Operating Results

Minneapolis,
MNOctober 21, 2004Rimage Corporation (Nasdaq: RIMG) today reported
revenues of $17,879,000 for the third quarter of 2004 ended September 30, an increase of
30% from $13,791,000 in the year-earlier period. Net income came to $2,132,000 or $0.21
per diluted share, up 7% from $1,980,000 or $0.20 per diluted share in the third quarter
of 2003. Rimage previously forecasted third quarter earnings of $0.18 to $0.20 per diluted
share on revenues of $16.0 to $17.0 million.

Rimages third
quarter revenue growth was generated, in part, by strong sales of its recently introduced
DiscLab product line, a new CD/DVD publishing system designed as a network appliance
to meet the specialized requirements of retail and medical applications. Equipped with an
embedded microprocessor that eliminates the need for an external host computer, the highly
compact DiscLab system has been integrated into OEM equipment for the medical imaging and
retail digital photography markets. Reflecting this initiative, Rimage is posting strong
sales into the medical market, where CT, MRI and other medical imaging modalities are
being retrofitted with the companys digital output systems. The DiscLab system also
is being deployed by a major national retailer in one-hour photo finishing labs at
selected stores.

Rimages third
quarter results also benefited from an 86% increase in sales of consumable supplies. Under
its new consumables initiative, the company is marketing kits consisting of blank CD or
DVD discs with replacement printer ribbons and cartridges. As its worldwide installed base
of CD/DVD publishing systems continues to grow, Rimage is capitalizing on the opportunity
for generating significantly higher levels of recurring revenues by making it easier for
customers to order their consumable supplies. By leveraging its infrastructure over an
expanding base of media kit sales, which carry profit margins below the companys
historic norm, Rimage believes its consumables strategy also should result in growing
amounts of incremental earnings.

Bernard P. (Bernie)
Aldrich, president and chief executive officer, commented: Rimage is in the process
of implementing a fundamentally new growth strategy, which has already had a strongly
positive impact on our 2004 sales. Although we fully intend to maintain our
industry-leading position in the markets served by our high-end Producer product line, we
are aggressively pursuing higher-growth opportunities in such emerging markets as retail
photography, medical imaging and recordkeeping, and business offices. Toward this end, we
have focused considerable resources on developing appropriate products for these
specialized markets, which require physically downsized, highly user-friendly and
lower-cost CD/DVD publishing solutions. Our new DiscLab and Desktop product lines share
these market-driven characteristics. At the same time, we have been strengthening
Rimages sales and marketing organization to penetrate these markets. The shift in
our sales mix toward lower-margin publishing systems and consumable supplies, combined
with increased R&D and sales and marketing expenses, has caused our earnings growth to
lag the significant expansion of our top line. We fully expect long-term earnings growth
to strengthen as our strategic business plans are more fully implemented. It also is
important to understand that Rimage has remained strongly profitable throughout this
transitional period. For these reasons, we are very optimistic about Rimages
future.

Cash and short-term
investments totaled $49,188,000 at September 30, 2004, down modestly from $49,386,000 at
the end of the second quarter, reflecting the use of cash to finance the increased
inventories required for supporting new products and the consumables strategy. Cash at the
end of the third quarter was up from $48,597,000 at the end of 2003. Stockholders
equity came to $59,370,000 at September 30, up from $56,233,000 at the end of the second
quarter and $52,011,000 at year-end 2003.



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Fourth Quarter Guidance
For the fourth quarter of 2004 ending December 31, Rimage is forecasting earnings of $0.20 to $0.22 per diluted
share on revenues of $17.5 million to $18.5 million. Results at these levels would bring
Rimages full-year earnings to the range of $0.80 to $0.82 on full-year sales of
$67.5 million to $68.5 million.

About Rimage
Rimage Corporation is the worlds leading provider of recordable CD and DVD publishing systems, which are
used by businesses to produce discs with customized digital content on an on-demand basis.
Rimages publishing systems, which span the range from high to low CD/DVD production
volumes, integrate robotics, software and surface label printers into a complete
publishing solution. Rimage is focusing its CD/DVD publishing solutions on a set of
vertical markets with special needs for customized, on-demand digital information: digital
photography, medical imaging, financial institutions, business offices, and government.

Statements regarding
Rimages anticipated performance in 2004 are forward-looking and therefore involve
risks and uncertainties, including but not limited to: market conditions in the computer
peripherals market, competitive products, changes in technology, conditions in overseas
markets that could affect international sales, and other factors set forth in
Rimages filings with the Securities and Exchange Commission.

# # #

RIMAGE CORPORATION
Selected Consolidated Financial Information
(In thousands except per share data)
(Unaudited)

Consolidated Statement of
Operations Information:

|                                    | Three months ended
September 30, | Nine months ended
September 30,
|----------------------------------- | -------------------------------- | -------------------------------
|
|                                    |                                  |                                
|Revenues                            |                                  |                                
|Cost of Revenues                    |                                  |                                
|Gross Profit                        |                                  |                                
|Operating Expenses:                 |                                  |                                
|Research and Development            |                                  |                                
|Selling, General and Administrative |                                  |                                
|Total Operating Expenses            |                                  |                                
|Operating Income                    |                                  |                                
|Other Income, Net                   |                                  |                                
|Income Before Income Taxes          |                                  |                                
|Income Tax Expense                  |                                  |                                
|Net Income                          |                                  |                                
|                                   
|Net Income Per Basic Share          |                                  |                                
|                                   
|Net Income Per Diluted Share        |                                  |                                
|Basic Weighted Average              |                                  |                                
|Shares Outstanding                  |                                  |                                
|Diluted Weighted Average            |                                  |                                
|Shares Outstanding                  |                                  |                                



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Consolidated Balance
Sheet Information:

|                               | Balance as of
|------------------------------ | -------------
|                               |              
|
|                               |              
|
|                              
|Cash and Marketable Securities |              
|Accounts Receivable            |              
|Inventories                    |              
|Total Current Assets           |              
|Property and Equipment, Net    |              
|Total Assets                   |              
|Current Liabilities            |              
|Stockholders' Equity           |              

# # #

|For additional information, contact: |                             
|------------------------------------ | ----------------------------
|Bernard P. (Bernie) Aldrich, CEO     | Richard G. Cinquina         
|Robert M. Wolf, CFO                  | Equity Market Partners      
|Rimage Corporation                   | 800/522-1744 or 904/261-2210
|952/944-8144                         |                             

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# Conference Call and
Replay

Rimage Corporation will
review its third quarter operating results in a conference call at 10:00 AM Eastern today.
To participate, call 1-800-257-1836 about 10 minutes before the scheduled start time and
ask for the Rimage conference call. A replay of the conference call will be available
through October 28, 2004 by dialing 1-303-590-3000 and providing the 11012203 confirmation
code. Investors also can listen to the conference call at www.rimage.com. Listeners should
go to this web site at least 15 minutes before the scheduled start time to download and
install any necessary audio software.

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