Exhibit 99.1

# Rimage Reports
Strongest Quarterly Earnings In Companys History

Minneapolis, MNOctober 25,
2005Rimage Corporation (Nasdaq: RIMG) today reported record net income of
$4,085,000 or $0.39 per diluted share for the third quarter of 2005 ended September 30, an
increase of 94% from $2,110,000 or $0.21 per diluted share in the year-earlier period.
Revenues for this period rose 56% to $27,962,000, from $17,879,000 in the third quarter of
2004.

Bernard P. (Bernie) Aldrich,
president and chief executive officer, commented: Our strong third quarter results
were generated by above-plan sales of Producer CD/DVD publishing systems across virtually
all of our targeted markets. Producer sales for this period included shipments of
approximately $6.0 million related to a previously reported order associated with
Rimages continuing rollout into the retail market. The $2.0 million balance of this
order is scheduled to ship in the fourth quarter. Reflecting the shift in our sales mix
toward high-end systems, Rimages gross margin rose to 48% in the third quarter from
44% in the year-earlier period. As a result, net income significantly exceeded our
earnings guidance for this period.

He continued: It is
particularly encouraging to note that our above-plan earnings were attained despite
incurring approximately $1.1 million in additional expense related to the previously
discussed strategic study that is being conducted by a major international consulting
firm. Aimed at identifying and developing new applications and markets as well as
strengthening our current business, this far-ranging study is scheduled for completion by
the end of October. The remaining $500,000 expense associated with this undertaking will
be incurred in the fourth quarter.

Aldrich added: We are
optimistic about our prospects for a solid fourth quarter, which would make 2005 the
strongest year in Rimages history. We also are confident about our longer-term
future. For example, four national retailers are currently testing Rimage equipment in
music, photo and software applications. And the strategic study currently underway is
uncovering a new range of promising opportunities. In all, we believe Rimages
strategic position is solidly grounded, and we look forward to bringing you news of
further positive developments in the future.

Financial Highlights
Recurring revenues, including sales
of printer ribbons and cartridges, parts, blank CD/DVD media and maintenance contracts,
increased 33% in the third quarter of 2005 and accounted for 35% of sales, compared to 41%
in the third quarter of 2004. The 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 29% in
this years third quarter and accounted for 28% of total sales, compared to 34% in
the year-earlier quarter. The European market continued to generate the majority of
international sales for this period, but sales in Asia and Latin America are growing,
reflecting intensified sales efforts in these regions. Currency effects had minimal impact
on worldwide sales in the third quarter of 2005.

Growth-related investments continued
at high levels in this years third quarter as Rimage pushed forward with developing
next-generation systems, expanding its sales support, and strengthening business
infrastructure systems that can accommodate Rimages accelerating growth. Operating
expenses, which included the approximately $1.1 million in expense related to the
strategic study, rose 56% in the third quarter year-over-year but declined to 26% of sales
from 28% of sales in this years second quarter. Consistent with prior statements,
expense growth is expected to moderate in the fourth quarter of 2005.

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Cash and marketable securities
totaled $61.7 million at September 30, 2005, up from $56.1 million at June 30 and $52.5
million at December 31, 2004. Stockholders equity rose to $73.4 million at September
30, from $68.2 million at the end of this years second quarter and $62.7 million at
year-end 2004.

Fourth Quarter Guidance
For the fourth quarter of 2005 ending
December 31, Rimage is forecasting earnings of $0.27 to $0.32 per diluted share on
revenues of $24 to $26 million. Results at these levels would bring Rimages
full-year earnings to the range of $1.15 to $1.20 on full-year sales of $95 to $97
million. Fourth quarter revenue guidance reflects the absence of retail-related shipments
similar in size to that in the third quarter. The outlook for the retail market remains
positive, but roll-outs of Rimage systems are expected to continue fluctuating between
quarters.

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, CEO
Robert M. Wolf, CFORimage Corporation952/944-8144 | Richard G. CinquinaEquity Market Partners
904/415-1415

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

Consolidated Statement of Operations
Information:

|                                    |  | Three months ended |   | Nine months ended
|----------------------------------- |  | ------------------ | - | -----------------
|
|
|
|                                   
|Revenues                            |  |                    | $ | 27,962           
|Cost of Revenues                    |  |                    |   | 14,571           
|Gross Profit                        |  |                    |   | 13,391           
|Operating Expenses:                 |  |                   
|Research and Development            |  |                    |   | 1,399            
|Selling, General and Administrative |  |                    |   | 5,937            
|Total Operating Expenses            |  |                    |   | 7,336            
|Operating Income                    |  |                    |   | 6,055            
|Other Income, Net                   |  |                    |   | 360              
|Income Before Income Taxes          |  |                    |   | 6,415            
|Income Tax Expense                  |  |                    |   | 2,330            
|Net Income                          |  |                    |   | 4,085            
|                                   
|Net Income Per Basic Share          |  |                    | $ | .43              
|                                   
|Net Income Per Diluted Share        |  |                    | $ | .39              
|Basic Weighted Average              |  |                   
|Shares Outstanding                  |  |                    |   | 9,553            
|Diluted Weighted Average            |  |                   
|Shares Outstanding                  |  |                    |   | 10,380           

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           |  |              

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