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Fri, 8 Feb 2002 00:13:38 -0500
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 This print-on-demand ("POD") capability is the elusive breakthrough in printing that has been anticipated for years, replacing offset printing methods that are antiquated and have not changed materially since Gutenberg invented the press.
COLOR IMAGING (OTC:"CIMG")  is comprised of two wholly owned subsidiaries: COLOR IMAGE, INC. ("COLOR") and LOGICAL IMAGING SOLUTIONS, INC. ("IMAGING"). The Company, through COLOR, manufacturers consumable products, notably toners, for use in numerous digital printers and copiers; and by way of IMAGING, supplies digital printing systems and software for commercial offset printers. The Company has experienced a 45% increase in orders for its products.
COLOR, formed in 1987, develops and manufactures products used in electronic printing, and specializes in text, color and MICR toners and manufactures these products in a 3-shift, 24-hour-per-day production cycle. COLOR is continually expanded its product of commercial toners, this development program has led to more than 150 different toner formulations, including the black text, full process color and MICR toner requirements for printers manufactured by Brothers, Canon, Epson, HP, IBM, Kyocera, Lexmark, Mita, Okidata, Sharp and Xerox.
The Company's revenues for FY 1999 and 2000, were $11.2 and $21.2 million respectively, with $33 million forecast for FY 2001
COLOR'S manufacturing and support operations tripled its size during FY 2000. The new manufacturing facility, with more than $12 million of capital equipment, employs a development team of over 30 engineers, physicists, programmers and chemists, and a support staff of more than 50 technicians. Production is a fully integrated process - from raw ingredients to bottling or bagging the finished product. COLOR'S products originate in the research and development labs, not in the toner factory. The initial step begins in a formulation lab, followed by a pilot manufacturing run in a high-tech, miniature version of the toner production plant. Finally, the toner is submitted to a thorough evaluation in the test lab over an exhaustive range of conditions ensuring perfect quality and the product is turned over to production.
IMAGING, founded in 1993, has continually focused on developing digital printing technologies for the commercial offset printing industry. The initial product, CREATE!TM, is a set of software programs specifically designed to allow the user or graphic artist to create any type of document and control the production process on an offset web press.  CREATE!TM accomplishes all imaging functions in a WindowsTM NT environment, enabling the user to create, edit, store, distribute, proof and download any document in an industry-standard format.
IMAGING'S DIGITALCOLORPRESSTM, incorporating the latest microprocessor technology, provides digital imaging, color and high print resolution, and the fastest digital production rates obtainable. Initial systems, printing only in black, are installed on over fifth offset presses in full production environments, and were designed to allow a simple upgrade path to color printing. Development and support facilities are located in Santa Ana, California.
COLOR IMAGING'S objective of revolutionizing the $360 billion worldwide printing industry will be significantly advanced with the imminent delivery of the DIGITALCOLORPRESS. This new technology will create untold applications and new and diverse markets by providing digital connectivity and computer controlled high-speed production printing, replacing laborious "make-ready" press setup processes by eliminating the need for printing plates and the mixing and supplying of inks. The DIGITALCOLORPRESS will transform commercial offset printing by significantly reducing both setup and operating costs and will enable any type of variable image or data to be printed digitally in color and on demand, each page with totally different content, and no job length restrictions - 50 or 5 million pages.
COLOR IMAGING also expects to become the world's largest independent manufacturer of imaging products by 2003, and currently produces toner for over 150 different models of printers and copiers in a 14-acre, state-of-the-art, manufacturing facility located in suburban Atlanta, GA. The introduction of the DIGITALCOLORPRESS will further enhance the Company's consumable product offering by create a "razor and razor blade" business model, as each DIGITALCOLORPRESS installation could require 1,000 pounds of toner per month

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