Polaroid Receives Waivers of Loan Covenants

Apr 02, 2001, 01:00 ET from Polaroid Corporation

    CAMBRIDGE, Mass., April 2 /PRNewswire/ -- Polaroid Corporation
 (NYSE:   PRD) today announced that it has obtained waivers on its bank loan
 covenants through May 15, 2001.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19990816/PRDLOGO )
     "These waivers give us the time to further the process of refinancing our
 corporate debt," said Carl L. Lueders, vice president and acting chief
 financial officer.  "We continue to focus on our five-point plan - announced
 last December -- to cut costs and reduce debt.  The plan is targeted at
 restructuring, reducing receivables and inventories, consolidating
 manufacturing, reducing capital spending and selling assets," he added.
     Lueders pointed out that Polaroid already has taken significant actions
 this quarter to improve the company's financial position and to achieve its
 objective of reducing corporate debt.  "On February 12 we suspended the
 dividend, which frees up more than $27 million annually, and on February 22 we
 announced a restructuring, which translates into about $60 million in cost
 savings on an annualized basis," he said.
     Polaroid continues to negotiate for the sale of its 56-acre Reservoir
 property in Waltham.  "The market has softened over the past few months, but
 we still have strong interest from several buyers.  We also are evaluating
 alternative ways to leverage cash from this and other properties.  For
 example, we expect to realize value from our six-acre office and residential
 development project in Cambridge," Lueders said.
     Polaroid remains committed to a two-pronged strategy of revitalizing its
 instant business and linking instant to the digital future.  Last year the
 company sold a record 13 million instant cameras led by the world's #1 seller
 -- the Polaroid i-Zone Instant Pocket Camera.  The company also sells more
 digital cameras in America's mass merchandisers than any other brand -- 1.3
 million in 2000, nearly triple that of a year earlier.
     Polaroid is scheduled to report its first quarter results in April.  As
 previously indicated, the company projects a net loss for the quarter
 influenced by ongoing channel inventory reductions, the soft economy and net
 interest expense of approximately $25 million.
     Additional information concerning the waivers and the company's liquidity
 and capital resources is available in the "Management Discussion and Analysis"
 in the Form 10-K filed with the Securities and Exchange Commission.
     Polaroid Corporation, with annual sales of approximately $2 billion, is
 the worldwide leader in instant imaging.  Polaroid supplies instant
 photographic cameras and films; digital imaging hardware, software and media;
 secure identification systems; and sunglasses to markets worldwide.  Visit the
 Polaroid web site at www.polaroid.com.
 
     "Polaroid" and "Polaroid i-Zone" are trademarks of Polaroid Corporation,
 Cambridge, Mass. 02139
 
     Statements in this release may be forward-looking. Actual events will be
 dependent upon factors and risks including, but not limited to, the Company's
 ability to: market its core imaging products; penetrate new demographic
 markets; develop and implement its digital imaging strategy; compete
 successfully in the instant imaging market against larger and stronger
 competitors; manage or reduce its debt; implement its strategies to reduce
 costs and improve cash flow; comply with the covenants in the Amended Credit
 Agreement, the U.K. Credit Agreement, the indenture governing the 2002 Notes,
 2006 Notes and 2007 Notes manage the impact of foreign exchange and the
 effects of retail buying patterns; as well as the Company's ability to manage
 uncertainties and risk factors, including those described from time to time in
 the Company's filings with the Securities & Exchange Commission, specifically,
 the Company's 2000 Form 10 K and its most recent Form 10Qs.
 
 

SOURCE Polaroid Corporation
    CAMBRIDGE, Mass., April 2 /PRNewswire/ -- Polaroid Corporation
 (NYSE:   PRD) today announced that it has obtained waivers on its bank loan
 covenants through May 15, 2001.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19990816/PRDLOGO )
     "These waivers give us the time to further the process of refinancing our
 corporate debt," said Carl L. Lueders, vice president and acting chief
 financial officer.  "We continue to focus on our five-point plan - announced
 last December -- to cut costs and reduce debt.  The plan is targeted at
 restructuring, reducing receivables and inventories, consolidating
 manufacturing, reducing capital spending and selling assets," he added.
     Lueders pointed out that Polaroid already has taken significant actions
 this quarter to improve the company's financial position and to achieve its
 objective of reducing corporate debt.  "On February 12 we suspended the
 dividend, which frees up more than $27 million annually, and on February 22 we
 announced a restructuring, which translates into about $60 million in cost
 savings on an annualized basis," he said.
     Polaroid continues to negotiate for the sale of its 56-acre Reservoir
 property in Waltham.  "The market has softened over the past few months, but
 we still have strong interest from several buyers.  We also are evaluating
 alternative ways to leverage cash from this and other properties.  For
 example, we expect to realize value from our six-acre office and residential
 development project in Cambridge," Lueders said.
     Polaroid remains committed to a two-pronged strategy of revitalizing its
 instant business and linking instant to the digital future.  Last year the
 company sold a record 13 million instant cameras led by the world's #1 seller
 -- the Polaroid i-Zone Instant Pocket Camera.  The company also sells more
 digital cameras in America's mass merchandisers than any other brand -- 1.3
 million in 2000, nearly triple that of a year earlier.
     Polaroid is scheduled to report its first quarter results in April.  As
 previously indicated, the company projects a net loss for the quarter
 influenced by ongoing channel inventory reductions, the soft economy and net
 interest expense of approximately $25 million.
     Additional information concerning the waivers and the company's liquidity
 and capital resources is available in the "Management Discussion and Analysis"
 in the Form 10-K filed with the Securities and Exchange Commission.
     Polaroid Corporation, with annual sales of approximately $2 billion, is
 the worldwide leader in instant imaging.  Polaroid supplies instant
 photographic cameras and films; digital imaging hardware, software and media;
 secure identification systems; and sunglasses to markets worldwide.  Visit the
 Polaroid web site at www.polaroid.com.
 
     "Polaroid" and "Polaroid i-Zone" are trademarks of Polaroid Corporation,
 Cambridge, Mass. 02139
 
     Statements in this release may be forward-looking. Actual events will be
 dependent upon factors and risks including, but not limited to, the Company's
 ability to: market its core imaging products; penetrate new demographic
 markets; develop and implement its digital imaging strategy; compete
 successfully in the instant imaging market against larger and stronger
 competitors; manage or reduce its debt; implement its strategies to reduce
 costs and improve cash flow; comply with the covenants in the Amended Credit
 Agreement, the U.K. Credit Agreement, the indenture governing the 2002 Notes,
 2006 Notes and 2007 Notes manage the impact of foreign exchange and the
 effects of retail buying patterns; as well as the Company's ability to manage
 uncertainties and risk factors, including those described from time to time in
 the Company's filings with the Securities & Exchange Commission, specifically,
 the Company's 2000 Form 10 K and its most recent Form 10Qs.
 
 SOURCE  Polaroid Corporation