Urges All Shareholders to Vote the Gold
Proxy Card for Imation’s Five Highly-Qualified Nominees
Visit www.RISEUPARLINGTON.com For More
Information
NEW YORK, May 23, 2016 --
Imation Corp. (“Imation”)
(NYSE: IMN), a shareholder of Arlington Asset Investment Corp. (“Arlington” or the “Company”) (NYSE: AI),
today sent a letter to Arlington shareholders highlighting a number of false and misleading accusations made by Arlington against
Imation. Imation believes Arlington’s smear campaign was designed to deter Arlington shareholders from accurately understanding
their voting options with respect to Arlington’s upcoming Annual Meeting of Shareholders on June 9.
Imation urges Arlington shareholders to not be fooled by Arlington’s
misstatements and to vote the
GOLD
proxy card today
“FOR”
Imation’s five highly-qualified,
independent, shareholder-first nominees, who will seek to increase the value of Arlington for the benefit of all Arlington shareholders.
The full text of the letter is below and available at www.RISEUPARLINGTON.com:
May 23, 2016
Dear Fellow Arlington Shareholder:
Arlington Asset Investment Corp.’s (“Arlington”
or the “Company”) Annual Meeting is fast approaching. Please join Imation in a key step toward restoring shareholder
value at Arlington by voting
“FOR”
the election of Imation’s five nominees — Scott R. Arnold, Barry
L. Kasoff, Raymond C. Mikulich, Donald H. Putnam and W. Brian Maillian — on the
GOLD
PROXY CARD TODAY
. If you
have previously signed and returned a white proxy card,
it is not too late to change your voting preference
. Your vote on
the
GOLD
proxy card is critical in order to protect the value of your investment.
DO NOT BE MISGUIDED BY ARLINGTON’S
FALSE AND MISLEADING CLAIMS ABOUT IMATION
Arlington has made
a number of false and misleading accusations
against Imation
during this proxy contest. We believe you deserve to know the truth about Imation, our nominees and our go-forward
strategy to restore value at Arlington so that you can make an informed decision at the Arlington Annual Meeting of Shareholders
on June 9.
ARLINGTON IS WRONG ABOUT IMATION’S
RESTRUCTURING
Arlington has made false statements
regarding Imation's
ongoing restructuring and compensation paid to the Imation Board during a period in which then-current management was unsuitable
to serve.
The truth is Imation’s current Board members identified problems
plaguing the company and stepped up to address the situation when then-current management was unequipped to do so. Imation’s
directors invested their own cash to support a strategic, value-creating turnaround of Imation, which included a termination of
Imation’s underperforming legacy businesses,
an aggressive rationalization of corporate overhead (including a sale
of the company’s corporate headquarters), an amendment to the company’s cash investment policy, and a revised go-forward
business strategy supported by well-calculated acquisitions.
Upon completion of Imation’s restructuring plan, Imation
will be a leaner, nimbler and more focused company that will be well-positioned for ongoing success.
ARLINGTON IS WRONG ABOUT IMATION’S
RELEVANT INDUSTRY EXPERTISE
Arlington has made false statements
regarding the industry
experience of Imation’s slate. The fact is Arlington’s incumbent slate has
no
direct mortgaged-backed securities
(“MBS”) investing experience outside of its management representatives and lacks the necessary MBS and asset management
skills to create value at Arlington. And yet these are people charged with overseeing your investment and management team. Imation’s
nominees, on the other hand, have significant expertise in MBS, real estate investing and asset management, and we believe are
all
far more qualified than Arlington’s incumbent directors.
ARLINGTON HAS MISSTATED OUR INTENTIONS ON
DIVIDENDS
Arlington has made false statements
implying that we would
reduce the Company’s dividend. The fact is we believe management’s inability to generate operating earnings to pay
the dividend has led to severe deterioration in book value. Maintaining the current dividend and paying dividends in the future
are fundamental to our go-forward strategy. The key distinction is we want to improve operating earnings and reduce risks to ensure
the dividend is sustainable and has the potential to be increased in the future.
ARLINGTON HAS GIVEN SHAREHOLDERS FALSE HOPE
IN A FULL RETURN OF BOOK VALUE
We have shown in our materials that management
has deceived shareholders in its presentation of its true operating earnings and financial health. For years, management has masked
poor performance by paying a dividend from capital reserves and new equity financings. Arlington has told shareholders that “book
value declines are temporary.” The truth is Arlington covered a substantial part of its hedge in Q1 2016, and a timely return
of book value is highly unlikely.
ARLINGTON IS WRONG ABOUT IMATION’S
CASH MANAGEMENT PROGRAM
Arlington has misrepresented our cash management program despite
our 100% transparency and significant voluntary disclosures. Our investment agreement with the Clinton Group, Inc. for cash management
calls for
no management fee
and a 25% incentive fee based upon value creation subject to a high-water mark. The investment
has daily liquidity and has been a profitable, flexible cash management solution for Imation.
In fact, we have offered to abandon
our proxy contest if the incumbent management team restructures its compensation structure to mimic a no management fee and 25%
incentive fee deal.
Why are they criticizing something that they are unwilling to do?
ARLINGTON SHAREHOLDERS DESERVE BETTER
We have heard of a number of complaints from fellow shareholders
who have received harassing phone calls from Arlington’s representatives.
If you are one of those shareholders, please
do not hesitate to contact us directly by calling our proxy solicitor at 855-305-0857 or emailing us at
riseuparlington@imation.com
.
Unfortunately, we have been unable to contact many of you as Arlington
has refused to provide us with a copy of its shareholder list. Therefore, you are only hearing one side of the story — the
Arlington side, which is riddled with false and misleading claims regarding Imation and its nominees. We invite you to review the
materials available at
www.RISEUPARLINGTON.com
to learn about our nominees and to get a clear and accurate picture of Imation’s
strategy for Arlington so that you may make an informed voting decision.
Do not be fooled by Arlington, who is wasting shareholders’
dollars –
your money
– on this long and costly proxy fight.
We urge you to protect the value of your investment
and vote the
GOLD PROXY CARD TODAY
for Imation’s five highly-qualified, independent, shareholder-first nominees,
who will seek to increase the value of Arlington for the benefit of all Arlington shareholders.
LEARN MORE
AT
www.RISEUPARLINGTON.com
Your Vote Is Important. No matter how many shares of Arlington
you own, we urge you to vote your
GOLD
proxy today, to ensure that your instructions are received in a timely manner.
Please vote by telephone or Internet by following the instructions on the enclosed
GOLD
proxy card or by signing,
dating and mailing your card in the enclosed envelope.
If any of your shares of common stock are held in the name of a
brokerage firm, bank, bank nominee or other institution, they can only vote your shares upon receipt of your specific instructions.
Thank you for your support,
Joseph A. De Perio
Chairman, Imation Corp.
If you have any questions, require assistance
with voting your
GOLD
proxy card, or need
additional copies of the proxy materials, please
contact our proxy solicitor:
OKAPI PARTNERS
|
1212 Avenue of the Americas, 24
th
Floor
|
New York, NY 10036
|
(212) 297-0720
|
Shareholders Call Toll-Free at: 855-305-0857
|
E-mail: info@okapipartners.com
|
About Imation Corp.
Imation (NYSE: IMN) is a holding company that operates through
a subsidiary engaged in global data storage and data security business. At the corporate level, there is an ongoing strategic review
as Imation expects to seek and explore new opportunities that will allow it to pursue a diverse range of business opportunities
and deploy its excess cash. For more information, visit www.imation.com.
Contacts:
Media
Jonathan Gasthalter/Amanda Klein
Gasthalter & Co.
(212) 257-4170
Investors
Okapi Partners
Bruce Goldfarb/Charles Garske
(212) 297-0720
IMATION CORP., ROBERT B. FERNANDER, CLINTON MAGNOLIA MASTER
FUND, LTD., CLINTON GROUP, INC., JOSEPH A. DE PERIO, AND GEORGE E. HALL, SCOTT R. ARNOLD, BARRY L. KASOFF, W. BRIAN MAILLIAN,
RAYMOND C. MIKULICH, AND DONALD H. PUTNAM (COLLECTIVELY, THE "PARTICIPANTS") HAVE FILED WITH THE SECURITIES AND
EXCHANGE COMMISSION (THE "SEC") A DEFINITIVE PROXY STATEMENT AND ACCOMPANYING FORM OF PROXY CARD TO BE USED IN
CONNECTION WITH THE PARTICIPANTS' SOLICITATION OF PROXIES FROM THE SHAREHOLDERS OF ARLINGTON ASSET INVESTMENT CORP., INC.
(THE "COMPANY") FOR USE AT THE COMPANY'S 2016 ANNUAL MEETING OF SHAREHOLDERS (THE "PROXY SOLICITATION").
ALL SHAREHOLDERS OF THE COMPANY ARE ADVISED TO READ THE DEFINITIVE PROXY STATEMENT AND OTHER DOCUMENTS RELATED TO THE PROXY
SOLICITATION BECAUSE THEY CONTAIN IMPORTANT INFORMATION, INCLUDING ADDITIONAL INFORMATION RELATED TO THE PARTICIPANTS. THE
DEFINITIVE PROXY STATEMENT AND AN ACCOMPANYING PROXY CARD WILL BE FURNISHED TO SOME OR ALL OF THE COMPANY'S SHAREHOLDERS AND
ARE, ALONG WITH OTHER RELEVANT DOCUMENTS, AVAILABLE AT NO CHARGE ON THE SEC'S WEBSITE AT HTTP://WWW.SEC.GOV/.
INFORMATION ABOUT THE PARTICIPANTS AND A DESCRIPTION OF THEIR DIRECT
OR INDIRECT INTERESTS BY SECURITY HOLDINGS IS CONTAINED IN THE DEFINITIVE PROXY STATEMENT ON SCHEDULE 14A FILED BY IMATION WITH
THE SEC ON MAY 4, 2016. THIS DOCUMENT CAN BE OBTAINED FREE OF CHARGE FROM THE SOURCE INDICATED ABOVE.