EXHIBIT 11.1

# RIMAGE CORPORATION
COMPUTATION OF NET INCOME PER SHARE OF COMMON STOCK

Basic net income per common share is determined by dividing net income by the
weighted average number of shares of common stock outstanding. Diluted net income per common share is determined by dividing net
income by the weighted average number of shares of common stock and common share equivalents outstanding, unless the result is
anti-dilutive. A total of 100 and 1,744 assumed conversion shares for the three and six months ended June 30, 2005, respectively,
and 2,720 and 2,327 assumed conversion shares for the three and six months ended June 30, 2004, respectively, were excluded from
the net loss per share computation as their effect is anti-dilutive. The following is a summary of the weighted average common
shares outstanding and assumed conversion shares:

|                                                                      | Three months endedJune 30, |  | Six months endedJune 30,
|--------------------------------------------------------------------- | -------------------------- |  | ------------------------
|
|Shares outstanding at end of period                                   |                            |  |                         
|                                                                      |                            |  |                         
|                                                                     
|Weighted average shares of common stock outstanding                   |                            |  |                         
|                                                                     
|Weighted average shares of assumed conversion shares                  |                            |  |                         
|                                                                      |                            |  |                         
|                                                                     
|Weighted average shares of common stock and assumed conversion shares |                            |  |                         
|                                                                      |                            |  |                         
|                                                                     
|Net income                                                            |                            |  | $                       
|                                                                      |                            |  |                         
|                                                                     
|Basic net income per common share                                     |                            |  | $                       
|                                                                      |                            |  |                         
|                                                                     
|Diluted net income per common share                                   |                            |  | $                       
|                                                                      |                            |  |                         

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