#1 Polaroid divested itself of all digital photography technology #2 Polaroid decided to focus on its core competency which is instant film. #3 They did not want to upset customers or shareholders by venturing to digital (no consumables to make profits on etc..) 2001 they declare chapter 11 (4 years later) From the 1997 shareholders letter So where is our new game plan taking Polaroid? Currently, our core photography business accounts for about 90 percent of total sales. As our results demonstrate, this business is solid and profitable. We expect to deliver growth, not only in developing markets, but also in North America, western Europe and Japan. In the years ahead, we expect our other businesses, such as digital products, sunglasses, holography, graphics and others that will surface, to grow rapidly and contribute a greater share of our total sales. The renewal of Polaroid is a work-in-progress. I am pleased with our 1996 progress, but we have yet to achieve our true potential. Nineteen ninety-six established a solid foundation for growing Polaroid. In 1997 and beyond, we will make our vision of a growing, reinvigorated Polaroid a reality. Through your continuing support we can realize our vast potential in the rapidly changing field of imaging. I am enthusiastic about our future, and I appreciate your confidence in Polaroid.