FUTURE IMAGE SAYS CELL PHONE CAMERAS WILL OUTSELL DIGITAL AND FILM CAMERAS COMBINED IN 2003, RISING IMAGE QUALITY WILL WIN OVER U.S. MARKET

SAN MATEO, CA - March 18, 2003 Future Image Inc., the leading provider of digital imaging information and analysis, today announced the results of its investigation into the explosive growth of cell phone cameras in the Asia Pacific region, including prospects for the U.S. and Europe, and overall impact on the imaging industry. Cell phone cameras include both camera-phones (cell phones with built-in cameras, the principal focus of the report) and camera attachments to cell phones (also covered).

"The camera-phone is about to evolve from an Asian phenomenon whose scale warrants global attention, into a global phenomenon" said Alexis Gerard, President, Future Image Inc. "In less than four years from their first commercial introduction, these devices will have become the world's most widely used picture-taking appliances."

"For the imaging industry, where opportunity for services and products derives from content, and content itself is a function of image capture, the implications are profound," added Tony Henning, Principal Author of the report and Lead Analyst for Future Image's WIRE (Wireless Imaging Research Edition) service. "We believe that, perhaps even more than by their sheer numbers, camera-phones will restructure the market by being the first image capture device ever that users will have with them at all times."

Entitled "The Camera-phone Phenomenon - A 'New Deal' in Imaging", the report forecasts that megapixel quality camera-phones will be on the market within months, with two and three megapixel units close behind. It further states that the challenges to mass-market adoption of camera-phones in the U.S. - both business and technical - will be met within the next 12 months, noting that carriers such as Sprint, T-Mobile, and AT&T have already been paving the way for months with television and print ads aimed at raising public awareness of picture messaging.

The 31-page report includes 24 figures, charts, and tables, and covers:
- Comparative forecasts for sales of camera-phones and digital cameras
- End-user feedback and usage patterns in the Asia/Pacific region
- An analysis of technology issues and trends for next generation handsets, including sensor resolution, CMOS vs. CCD technology, and optics.
- Geographical differences in market acceptance and a geographic breakdown of sales
- Analysis of drivers and inhibitors in Japan, Korea, China, Western Europe, and the United States
- Short and medium term prospects for the U.S. market
- An analysis of business opportunities resulting from camera-phone sales, in the areas of print services, commercial content delivery, and infrastructure and content management services.

It is available now from the Future Image Web site (www.futureimage.com)

About Future Image
Future Image Inc. is the leading independent center of expertise on the convergence of imaging, technology and business. It publishes two continuous information services, the Future Image Executive Information Service, and the Future Image WIRE (Wireless Imaging Research Edition) as well as research studies on the impact of emerging imaging-focused technologies or business trends. Recently published studies include "CPXe - Reshaping Photofinishing Through Web Services", "Beyond The 4x6 - New Print Options For Consumer Digital Photography", "Integrated Electronic Personal Photo Sharing - The Future of Consumer Photography", "Image Servers - Vendor Competitive Profiles And Early Adopter Case Studies" and "Digital Cameras - The Battle For The Emerging Consumer Market." Future Image is the official information and research partner of the International Imaging Association (I3A), and the Managing Partner of the Visual Communication initiative (www.visualcommunication.info), supported by Eastman Kodak, Epson, Hewlett-Packard, IBM, LightSurf, Microsoft, Nikon and Sprint PCS. Founded in 1991, the company is headquartered in San Mateo (CA).

Note to Editors: Excerpts of the reports are available for publication.

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