ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.

On August 11, 2008, a Purchase and Sale Agreement dated July 31, 2008 between Rimage Corporation (the "Company") and 7725 Washington Avenue Corp. (the "Seller") became effective. Under the Purchase and Sale Agreement, the Company will purchase from the Seller the real property and building the Company currently leases as its corporate headquarters in Edina, Minnesota. The closing of the purchase transaction will occur ninety days following August 11, 2008, except that the Company may accelerate the closing date upon notice to the Seller. The closing of the transaction is subject to the satisfaction by both parties of customary closing conditions. The Company paid $50,000 in earnest money on August 11, 2008 that will be credited toward the total purchase price of $3.8 million. The balance of the purchase price is payable by the Company at the closing. The Company will finance the purchase using cash on hand.

A copy of the Purchase and Sale Agreement will be filed as an exhibit to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2008 and the above summary of the Purchase and Sale Agreement is qualified in its entirety by reference to such exhibit.