Retailers Will Be Able To Leverage Their Existing Assets To Move Consumers Beyond 4x6 Prints.

LAS VEGAS, NV, Mar. 7 -- Eastman Kodak Company today demonstrated a range of digital imaging solutions aimed at helping retailers tap growing consumer demand to do more with their digital pictures. At the Photo Marketing Association's Annual Conference and Exposition, Kodak unveiled a lineup of custom photo books, collages and digital photo merchandising products and services that can be produced in-store, on-line and at wholesale.

"Each day some 315 million digital images are taken and stored, but not printed, creating a tremendous opportunity for retailers to help consumers do more with their digital images," said Brad Kruchten, General Manager of Kodak's Retail Printing Business and Vice President, Eastman Kodak Company. "If the industry is to unlock this potential treasure chest of images, we must work together to offer consumers a variety of easy-to-use products and services that are readily available from multiple pathways."

"Our approach will be to offer retailers a portfolio of in-store, on-line and wholesale products and services, all based on open architecture, that will leverage their existing assets to profitably grow the digital business - while offering consumers the ability to do more with their pictures than capture and print 4x6-inch photos and enlargements," says Kruchten. "These products and services will enable consumers to move beyond capturing and sharing moments to creating and sharing stories."

At PMA, Kodak is showing:

• KODAK EASYSHARE Custom Creations Software, that will make it easy for consumers to design their own photo products at home for printing at retail. The desktop software application provides consumers with an easy, fast and fun way to create photo books, calendars, collages, greeting cards and other photo specialty items. Once completed, consumers can simply download their creation to a CD and bring to a retail location or send on-line to a retailer for production. (see separate release for more information)
  
• KODAK Picture Kiosk Software (Version 1.5) with New Auto Collage feature that provides consumers with a new level of flexibility to easily create custom collages that can be printed in minutes on the kiosk or in-store mini-lab. And the new KODAK GS Compact Picture Kiosk with countertop design and easy installation for maximum ROI in low burn locations. (see separate release for more information)
  
• KODAK EASYSHARE Digital Cameras and Accessories, including the Z885 and Z712 IS with high ISO and image stabilization for taking action pictures in any lighting conditions. (see separate release for more information)
  
• KODAK s1220 Photo Scanning System that provides an in-store solution for converting consumers' photo prints into digital files on KODAK Picture CDs, KODAK Picture Movie DVDs and the wholesale KODAK picture shoebox scanning service. (see separate release for more information)
  
• KODAK HQ Maximum Versatility Single Use Camera that emulates the sleek stylish look of a digital camera and is 20% smaller than the model it replaces; and new KODAK GOLD 100 and 200 speed consumer films with enhanced emulsions for brighter pictures. (see separate release for more information)
  
• New KODAK PROFESSIONAL Digital Print Production Software DP2 for improved efficiencies and increased quality and throughput in pro labs; and new professional paper optimized for digital printing. (see separate release for more information)
  
• KODAK NEXPRESS Digital Production Color Press enhancements for increased productivity and higher image quality for photo book applications. (see separate release for more information)
  

The In-Store Experience

As digital imaging becomes more commonplace, consumers are turning to retailers to print their digital images. Retailers can expand their in-store offerings with KODAK products and services to produce custom photo books, collages, calendars, greeting cards, and other photo specialty items. According to Kruchten, Kodak is offering retailers the most comprehensive and flexible portfolio designed to meet each retailer's market requirements.

Kodak's Digital Support Network

Kodak's Qualex wholesale photofinishing subsidiary in the U.S. has been "retooled" as a digital printing infrastructure, providing retailers with a range of digital fulfillment products and services. Qualex provides retailers with the flexibility to grow their digital output business while leveraging their in-store assets. By partnering with Qualex, retailers can now provide digital fulfillment without in-store investment, offer alternative price/value solutions to complement their in-store capabilities and expand their portfolio of digital services beyond what they can produce on-site.

Qualex can provide retailers with a portfolio of custom photographic products such as photo books, collages, calendars, posters and mugs. Qualex's photo book offerings will include simple 4x6-inch flip books and custom-bound photo books printed on silver halide paper, and premium soft and hard cover books printed on Kodak's NEXPRESS Digital Printing Press.

According to Photofinishing News, the market for these and other custom photographic products will total $1 billion in the U.S. this year. By partnering with Kodak, retailers are now able to tap into Qualex's wholesale digital network to offer an unprecedented range of solutions for this burgeoning market.

About Eastman Kodak Company
Kodak is the world's foremost imaging innovator. With sales of $13.3 billion in 2006, the company is committed to a digitally oriented growth strategy focused on helping people better use meaningful images and information in their life and work. Consumers use Kodak's system of digital and traditional products and services to take, print and share their pictures anytime, anywhere; Businesses effectively communicate with customers worldwide using Kodak solutions for prepress, conventional and digital printing and document imaging; Creative Professionals rely on Kodak technology to uniquely tell their story through moving or still images; and leading Healthcare organizations rely on Kodak's innovative products, services and customized workflow solutions to help improve patient care and maximize efficiency and information sharing within and across their enterprise.

More information about Kodak (NYSE: EK) is available at www.kodak.com.

Kodak, EasyShare, Gold, Kodak Professional and Nexpress are trademarks of Eastman Kodak Company.