EXHIBIT 99.1



Hold For Release Until:

4:00 PM Eastern

February 26, 2007



Rimage Corporation Reports Strongly Improved

Fourth Quarter Operating Results



Minneapolis, MNFebruary 26,
2007Rimage Corporation (Nasdaq: RIMG) today reported revenues of $30,519,000 for the fourth quarter of 2006 ended December 31, an increase of 26% from $24,266,000 in the fourth quarter of 2005. Net income rose 57% to $3,625,000 or $0.34 per diluted share, from $2,304,000 or $0.22 per diluted share in the year-earlier quarter. Earnings for this period were reduced by pre-tax stock compensation expense of approximately $500,000 and a pre-tax charge of approximately $648,000 for tooling impairment and excess raw material inventory related to the low-end 360i product line. Fourth quarter revenues and earnings significantly exceeded the previously-issued guidance for this period.



For full-year 2006, revenues totaled $103,252,000, up 8% from $95,410,000 in 2005. Net income for the year came to $13,084,000 or $1.26 per diluted share, an increase of 15% from $11,368,000 or $1.10 per diluted share in 2005. Net income for 2006 included approximately $1.7 million of pre-tax stock compensation expense, compared to none during 2005.



Bernard P. (Bernie) Aldrich, president and chief executive officer, commented: We ended 2006 by posting the strongest fourth quarter in our history, a performance that enabled Rimage to cross the $100 million sales milestone and report record earnings for the full year. Virtually every aspect of our business continued to perform at a high level during the quarter. Our global channel generated sales of mission-critical Producer disc publishing systems across a wide spectrum of markets. In addition, we continued making excellent progress in our targeted retail, medical imaging and business services applications through sales of both Producer disc publishing systems and related consumable supplies. Looking ahead, we will continue to focus our resources and technological competencies on significant opportunities in our targeted markets. Our strategic focus, combined with the strength of our served markets,
makes us believe Rimages outlook for 2007 is very positive.



A strong focus on Rimages mission-critical Producer line and slower sales of the low-end 360i product line necessitated the fourth quarter charge for tooling impairment and excess raw material inventory. Rimage is currently evaluating a new distribution strategy for this line.



Financial Highlights

Recurring revenues, including sales of printer ribbons and cartridges, parts, blank CD/DVD media and maintenance contracts, increased 47% in the fourth quarter of 2006 and accounted for 47% of sales, compared to 40% in the fourth quarter of 2005. The growth of consumable supplies has been generated by strategic efforts to capitalize upon the expansion of Rimages installed base of CD/DVD publishing systems in retail and other applications.



International sales increased 14% in the fourth quarter of 2006 and accounted for 34% of sales, compared to 38% in the fourth quarter of 2005. Rimage is moving forward with efforts to strengthen its large European operation, which continued to generate the majority of the quarters international sales. Currency effects increased worldwide sales by 2% in the fourth quarter of 2006.



Cash and investments rose to $77.4 million at December 31, 2006, from $73.3 million at the end of the third quarter and $64.3 million at the end of 2005. During the quarter, cash totaling $0.4 million was used to support the implementation of an SAP enterprise resource planning system in North America and Europe. Stockholders equity increased to $95.5 million at December 31, 2006, from $90.5 million at the end of the third quarter and $76.5 million at year-end 2005.

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For the first quarter of 2007 ending March 31, Rimage is forecasting revenues of $21.0 to $23.0 million and earnings of $0.15 to $0.20 per diluted share. Given the order patterns of many customers, the first quarter is typically Rimages weakest sales period of any given year. In addition, Rimage expects to incur expenses of approximately $500,000 related to the North American and European cutover to its new SAP-based enterprise resource planning system. Any further expenses associated with this project are expected to be minimal.



About Rimage

Rimage Corporation is the worlds leading provider of 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, including digital photography, medical imaging and financial institutions. Visit our web site at www.rimage.com.



Statements regarding Rimages anticipated performance are forward-looking and therefore involve risks and uncertainties, including but not limited to: market conditions, 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.



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For additional information, contact:Bernard P. (Bernie) Aldrich, CEO
        Richard G. CinquinaRobert M. Wolf, CFO
        Equity Market PartnersRimage Corporation
        904/415-1415952/944-8144




Conference Call and Replay

Rimage Corporation will review its fourth 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 March 5, 2007 by dialing 1-303-590-3000 and providing the 11083382 confirmation code.

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RIMAGE CORPORATION

Selected Consolidated Financial Information

(In thousands except per share data)

(Unaudited)



Consolidated Statement of Operations Information:



Three months endedDecember 31,
        
        Twelve months endedDecember 31,2006
        
        2005
        
        2006
        
        2005Revenues
        
        $
        30,519
        
        $
        24,266
        
        $
        103,252
        
        $
        95,410Cost of Revenues
        
        
        16,856
        
        
        13,460
        
        
        56,014
        
        
        51,957Gross Profit
        
        
        13,663
        
        
        10,806
        
        
        47,238
        
        
        43,453Operating Expenses:Research and Development
        
        
        1,956
        
        
        1,335
        
        
        6,737
        
        
        5,512Selling, General and Administrative
        
        
        6,612
        
        
        6,233
        
        
        22,727
        
        
        21,317Total Operating Expenses
        
        
        8,568
        
        
        7,568
        
        
        29,464
        
        
        26,829Operating Income
        
        
        5,095
        
        
        3,239
        
        
        17,774
        
        
        16,624Other Income, Net
        
        
        687
        
        
        524
        
        
        2,684
        
        
        1,419Income Before Income Taxes
        
        
        5,782
        
        
        3,763
        
        
        20,458
        
        
        18,043Income Tax Expense
        
        
        2,157
        
        
        1,459
        
        
        7,374
        
        
        6,675Net Income
        
        
        3,625
        
        
        2,304
        
        
        13,084
        
        
        11,368Net Income Per Basic Share
        
        $
        .37
        
        $
        .24
        
        $
        1.33
        
        $
        1.19Net Income Per Diluted Share
        
        $
        .34
        
        $
        .22
        
        $
        1.26
        
        $
        1.10Basic Weighted AverageShares Outstanding
        
        
        9,899
        
        
        9,601
        
        
        9,812
        
        
        9,530Diluted Weighted AverageShares Outstanding
        
        
        10,424
        
        
        10,467
        
        
        10,356
        
        
        10,312






Consolidated Balance Sheet Information:



Balance as ofDecember 31,2006
        
        December 31,2005Cash and Marketable Securities
        
        $
        38,766
        
        $
        64,275Accounts Receivable
        
        
        21,697
        
        
        12,885Inventories
        
        
        6,072
        
        
        6,621Total Current Assets
        
        
        70,117
        
        
        86,444Property and Equipment, Net
        
        
        3,626
        
        
        2,525Marketable Securities  Non-Current
        
        
        38,594
        
        
        Total Assets
        
        
        112,359
        
        
        89,009Current Liabilities
        
        
        16,163
        
        
        12,191Long-term Liabilities
        
        
        720
        
        
        289Stockholders Equity
        
        
        95,476
        
        
        76,529




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