Ritz Camera Switches to Intel Pentium® II Processor Platform

Expands Imaging Services, Anticipates Business Advantages

NEW YORK, June 2, 1997 – Ritz Camera Centers, the nation's largest photographic chain with nearly 600 Ritz Camera® retail stores, today announced a long-term commitment to the Intel Architecture (IA) -- Pentium® II processor- and MMX™ technology-based PC's – to meet customers' growing PC Imaging needs. The Intel-Ritz announcement was made at Intel's Technology Series Forum on Visual Computing, held at the Millenium Broadway's Hudson Theater in New York City.

Ritz stated that the PC platform will enable the company to provide a higher level of quality and scope of digital imaging services to its customers. In addition, Ritz sees that the inherent capabilities of Pentiu® II processor-based systems will enable its business to respond to retailing opportunities and competitive influences much more rapidly. With the ability to make full use of the latest visual computing applications, Ritz Camera Centers will now be able to broaden the scope of its digital photo services, including customized photo restoration and enhancement, Internet access, and the production of specialty items such as posters and T-shirts. Ritz will also develop a range of visual computing services based on Intel technology, integrating 3-D, animation and video. Ritz and Intel will work with other partners such as Hewlett Packard to provide high-quality digital imaging services.

"Businesses today establish and maintain leadership through the application of innovative technology. Intel's visual computing technologies enable retail imaging pioneers like Ritz to maintain their advantage through the high-end capability of the PC platform," said Ron J. Smith, vice president and general manager, Computing Enhancement Group (CEG), Intel Corporation.

"We are moving from proprietary workstation systems to the Intel Pentium processor-based PC platform to make the highest levels of photo imaging fully accessible to and compatible with the home and small business PC owner. Visual computing capabilities enable us to advance the market by offering a wider range of services," said David Ritz, president and chief executive officer of Ritz Camera Centers.

Ritz Camera, a leader in personal and small business digital imaging services, will initially convert existing proprietary systems at 20 full-service IMAGEination® centers to HP Pavillion PCs with Intel Pentium II processors. The full-featured multimedia capabilities of the HP Pavillion family of PCs are well-suited for the digital imaging services of Ritz Camera stores. Other digital services that are now available in most Ritz Camera stores will also be transferred to the PC platform in the future. As one of the pioneers in retail digital imaging, Ritz and Intel will cooperate in both the development of PC imaging and Intel's portable PC camera specification.

"To some people, MMX technology is fun and games," said Carl Iseli, Ritz Camera's vice president, Digital Technologies. "To Ritz, it means productivity and cost effectiveness. Intel Architecture translates into significant time savings, which in turn make services more affordable to the consumer. HP, a recognized leader in imaging technology and PCs, was an obvious choice to partner with us. This solution enables the company to lower training and equipment costs and operate more efficiently using off-the-shelf hardware and software."

According to IDC (International Data Corporation), over 17 billion pictures are taken each year. Digital-still camera sales are projected to grow to over 15 million units sold annually by the year 2000 (Photo Marketing Association International-1994).

Ritz Camera Centers, Inc. is a privately held company headquartered in Beltsville, Md. The largest and fastest growing photo retailer in the U.S., Ritz currently owns and operates approximately 600 stores nationwide. Leading the photo industry in digital imaging services, Ritz opened the first IMAGEination centers in 1992 and currently provides on-site digital services in approximately 400 stores.

Intel is developing the building block technology for visual computing, enabling small businesses to perform on a large scale and corporations to improve customer satisfaction. This new direction in business computing represents a significant opportunity for the industry to deliver new products, reach new customers, increase demand and access new channels. Visual computing includes home and business applications that use 3-D, video and imaging. PC Imaging is digital imaging within the PC environment, enabling home and business users to capture, edit, store, share and publish images quickly and easily.

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