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NEW ORLEANS -- Digital imaging took its place alongside the Advanced Photo System and 35mm cameras at this year's Photo Marketing Association show as one of three formats that will lead photography into the next decade.

The integration of these technologies and the method by which each is translated at the store level are issues that will have a profound impact on the category going forward.

"Each of the technologies has very big advantages and can co-exist," said Richard LoPinto, vp of the photo marketing division at Nikon Inc. "There is no suggestion that one will universally replace the other because film is far superior than digital performance, 35mm has a well-developed customer base, and APS has its place with consumers who want some variety in their picture-taking."

Digital cameras have been available for several years in the professional market and are now making inroads into many retail channels as a computer peripheral. This growth is largely concentrated in specialty photo and consumer electronics stores such as Best Buy, which recently reconfigured its photo department and created an endcap of four skus of digital cameras priced up to $700.

Discount stores have not yet made a commitment to digital imaging and are not likely to do so until price, functionality and quality improve. In fact, although digital cameras are predicted to number between 1 million and 1.7 million units in 1997, they will still have only 6% to 7% of household penetration by the turn of the century, according to Brian Miller, director of marketing at Samsung Opto-Electronics America Inc.

However, it is possible for discounters to begin preliminary investigation of the new technology now that affordable digital cameras priced in the $200 range -- like Vivitar's ViviCam 2000 -- are available.

More high-end models with LCD screens and other bells and whistles remain the most plentiful of manufacturers, offerings, and 150 companies displayed digital imaging products at the PMA Show. Every major photo company supported at least one introduction.

The big news for Minolta was its Dimage V digital camera featuring a detachable rotating lens unit called MOVEnZOOM that can capture images over the heads of crowds, around corners or in confined areas. Included software allows the image data to be transferred directly from Dimage V to a PC, which operates in either Windows or Mac. For the Mac, it functions as a plug-in for Adobe Photo Deluxe 1.0 and as stand-alone software. Under Windows, it is compatible with TWAIN standards, acquiring image-into-image manipulation or stand-alone software. The package retails for $895 and begins shipping in April.

While most of the buzz on the trade floor was centered around digital imaging, the important issue for discounters is continued support of compact 35mm cameras and growing support of APS. Retailers meeting behind closed doors were reportedly asking some very pointed questions about the future of APS and issues such as advertising support, price points, and retailer and consumer education.

"Retailers want justification of the APS line," said Paul Gordon, advertising and marketing director at Konica U.S.A. Inc. "Group 5 didn't deliver in terms of stock, so suppliers need to juice up variety of APS cameras to survive. It will be a make-or-break year for the format."

In response, suppliers plan to devote more resources to the format in '97. Kodak plans to increase consumer impressions from 30% to 50% through TV and print advertising in April, and Fuji is ear-marking the "lion's share" of its advertising to support the system and conduct retail APS training programs on request.

Second-generation APS products inundated the show, including five items from Kodak, which brought out its 1600 series priced under $65 for the third quarter, and two items from Concord Camera: the D-200 with built-in auto-flash and red-eye reduction, and the A 200 with built-in flash, Fuji raised its selection to nine APS models and five Smart Film choices.

First-time entrant Polaroid will bring its fixed focus and auto focus APS cameras to market this month, with retails of $59 and $69, respectively. Film (25 exposures) will follow in June.

Agfa returns to the camera category after a decade with two APS models, the Agfa Future FF (fixed focus) and Agfa Futura AF (auto focus), with retails between $67 and $134. Pentax showcased its IQZoom 200iX, which has subtitle selection/imprinting with 12 language choices and 31 prerecorded subtitles.

Suppliers are also looking to broaden the market for APS. New target Generation X.

This age group was courted most heavily by Minolta with its second generation of Vectis APS cameras called Xtreem GX Series. The line consists of four splash-proof compact, point-and-shoot cameras in fashion colors. The cameras are designed for outdoor use; each includes a large viewfinder and high eyepoint, which makes it possible to use when wearing goggles or sunglasses. Three of the four models carry a suggested retail of $140. The waterproof camera is $175. Freestanding accessories, such as a holster, belt/arm band, mini tripod and a variety of camera straps, were also available for the Xtreem cameras.

Black & white film is making a slight comeback thanks to younger consumers, who are influenced by stylish black & white ads from the likes of Calvin Klein, Guess and other tastemakers. Ilford has a one-time-use camera with flash and one without. They will retail for $12.95 and $9.95, respectively. And Konica has its C41 24+3 exposure one-time-use camera for $12.99.

Color film saw some introductions with Kodak showing its Gold 400, 200 and 100 films with improved color saturation, color accuracy and sharpness in a broad range of picture-taking conditions. Its 800-speed film will be billed as "self-adjusting" to reflect its flexibility. Also seen at the show: new HP 200 color print film from Imation Corp. that provides a wide variety of shooting conditions and situations for both compact and SLR cameras.

Some other interesting products at the show included: * The Olympus 1000, a digital audio recorder with 2MB miniature card that interfaces with a PC or laptop. It has unlimited memory, and an industry standard file format; * The 3-D 35mm point-and-shoot camera with flash by Kalimar that uses a multi-element optical lens and includes a 3-D processing mailer.