Exhibit 99.1

# Rimage Reports Strong
Second Quarter Sales and Earnings $9 Million Retail
Order Received in July

Minneapolis, MNJuly 20,
2005Rimage Corporation (Nasdaq: RIMG) today reported revenues of $22,307,000 for
the second quarter of 2005 ended June 30, an increase of 27% from $17,631,000 in the
second quarter of 2004. Net income came to $2,288,000 or $0.22 per diluted share, up 13%
from $2,031,000 or $0.20 perdiluted share in the year-earlier quarter.

Bernard P. (Bernie) Aldrich,
president and chief executive officer, commented: Our second quarter revenue growth
was generated by stronger than anticipated sales into most of our targeted markets,
reflecting the continued positive impact of our growth strategy that emphasizes
market-driven product development, expanded sales support and marketing initiatives, and
sales of consumable supplies. Our strong sales performance was broadly based and not
generated by major orders from any one customer or market. Following the close of the
second quarter, we received an order of approximately $9 million related to the national
roll-out of our systems by a major retailer. We are scheduled to ship approximately $7
million of this total order, which includes consumable supplies, during the third quarter,
and the remainder in the fourth quarter. We believe the magnitude of this order is fully
indicative of the growing momentum of Rimages focus on retail applications for our
CD/DVD systems. Reflecting our progress in this segment, four other national retailers are
currently testing Rimage equipment in music, photo and software applications. These and
other positive developments make us optimistic about Rimages near and longer-term
prospects.

Aldrich continued: We believe
that substantial opportunities exist for our current CD/DVD technology for the foreseeable
future. As an organization that is managed from a long-term perspective, we have deemed it
prudent to embark on a far-ranging study aimed at identifying potential new technologies
and opportunities that Rimage can effectively pursue in its global markets in coming
years. A major international consulting group with extensive experience in this arena will
be assisting us with this vitally important strategic study, which will involve an expense
of approximately $1.5 million. We expect to incur $1 million of this expense in this
years third quarter and the remainder in the fourth. Despite this investment, we
believe cash from operations should continue to increase in the third quarter.

Financial Highlights
Recurring revenues, including sales
of printer ribbons and cartridges, parts, blank CD/DVD media and maintenance contracts,
increased 37% in the second quarter of 2005 and accounted for 42% of sales, compared to
39% in the second quarter of 2004. The strong growth of consumable supplies has been
spurred by Rimages media kit strategy as well as by the continued expansion of
Rimages worldwide installed base of CD/DVD publishing systems.

International sales increased 20% in
this years second quarter and accounted for 34% of total sales, compared to 36% in
the year-earlier quarter. The European market continued to generate the majority of
international sales for this period, but sales growth in Asia and Latin America was
strong, reflecting intensified sales efforts in these regions. Currency effects increased
worldwide sales by 1% in the second quarter of 2005.

Growth-related investments continued
at high levels in this years second quarter as Rimage pushed forward with the
process of developing next-generation systems, expanding sales support for recently
introduced products, including the Rimage 360i, and strengthening business infrastructure
systems that can accommodate Rimages accelerating growth. For the quarter, total
operating expenses increased 29% and accounted for 28% of sales, which was unchanged from
the year-earlier period. Expense growth is expected to moderate in the fourth quarter of
2005.

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Cash and short-term investments
totaled $56.1 million at June 30, up from $52.4 million at March 31, 2005 and $52.5
million at December 31, 2004. Stockholders equity came to $68.2 million at the end
of this years second quarter, up from $62.7 million at year-end 2004.

Third Quarter Guidance
For the third quarter of 2005 ending
September 30, Rimage is forecasting earnings of $0.27 to $0.32 per diluted share on
revenues of $27 to $29 million. This guidance reflects the fact that the impact of the
large shipment of CD/DVD systems and related consumables to the national retail customer
will more than offset the expense related to the strategic study. Third quarter guidance
also reflects the impact of the normal seasonal slowdown experienced by Rimages
European operation.

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.
Visit our web site at www.rimage.com

Statements regarding Rimages
anticipated performance in 2005 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.

#      #      #

For additional information, contact:

|Bernard P. (Bernie) Aldrich |  | Richard G. Cinquina    | 
|--------------------------- |  | ---------------------- | 
|Robert M. Wolf, CFO         |  | Equity Market Partners | 
|Rimage Corporation          |  | 904/261-2210           | 
|952/944-8144                | 

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

Consolidated Statement of
Operations Information:

|                                    | Three months endedJune 30, |  | Six months endedJune 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                  |                            |  |                         

Consolidated Balance
Sheet Information:

|                            | Balance As Of
|--------------------------- | -------------
|                            |              
|
|                            |              
|
|                           
|Cash and Cash Equivalents   |              
|Accounts Receivable         |              
|Inventories                 |              
|Total Current Assets        |              
|Property and Equipment, Net |              
|Total Assets                |              
|Current Liabilities         |              
|Long-term Liabilities       |              
|Stockholders' Equity        |              

# Conference Call and
Replay

Rimage Corporation will review its
second quarter operating results in a conference call at 4:30 PM Eastern today. Investors
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. A replay of the conference call will be available through June 27, 2005 by
dialing 1-303-590-3000 and providing the 11034978 confirmation code. 
The webcast will be archived on
Rimages website.

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