Kodak plans to implement KODAK TRACELESS System for Anticounterfeiting on KODAK rechargeable Lithium-Ion Digital Camera Batteries supplied by SANYO Electric Co., Ltd Mobile Energy Company

LAS VEGAS --(Business Wire)-- Jan. 7, 2008 Kodak aims to pull the plug on counterfeiters exploiting the consumer electronics industry. At the International Consumer Electronics Show in Las Vegas this week, Kodak announced it will deploy its cutting edge KODAK TRACELESS System for Anticounterfeiting on KODAK Li-Ion Rechargeable Digital Camera Batteries.

The worldwide consumer electronics industry is struggling to fend off the growing threat of counterfeit batteries. As consumer use of handheld electronic devices soars, demand for rechargeable batteries is growing rapidly, and so are the problems caused by counterfeiters who are inserting fakes into legitimate sales outlets everywhere. Counterfeit batteries can lead to poor product performance, damage to electronic devices, and overheating that can create the risk of chemical leakage, burns, and even fires.

"Counterfeit batteries that find their way into electronic devices put millions of consumers at an unnecessary risk," said Philip Faraci, President and Chief Operating Officer, Eastman Kodak Company. "With the TRACELESS System, Kodak can offer a higher level of protection to our customers. We can also send a clear message to counterfeiters: don't try to replicate our batteries, because you won't be able to do it."

With the TRACELESS System in place, KODAK will be able to quickly and easily distinguish fakes from genuine KODAK Lithium-Ion batteries. The TRACELESS System uses forensically undetectable markers that can be placed into printed materials, product packaging or components of the actual products. The markers can only be detected using secure, handheld KODAK readers.

"The best way to fight back against counterfeiters is to implement tough countermeasures that can't be duplicated," said Steven Powell, General Manager and Director, Security Solutions, Kodak's Graphic Communications Group. "That's exactly what TRACELESS System delivers, and it is ready to go for the consumer electronics industry."

Kodak has already implemented the system for customers in the pharmaceutical, cosmetics, wine, apparel and other markets.

The TRACELESS System is ideal for the protection of a wide range of products and packaging materials, because TRACELESS markers can be mixed with various inks, toners, varnishes, and other items for analog and digital printing, as well as paper pulp, plastics, powders, pigments, liquids and textiles. The TRACELESS system is especially suited for the electronics industry, because the covert markers can be embedded into widely used thermal transfer ribbons, a common method for printing barcode labels on electronic goods. In the booth at CES, Kodak demonstrated this unique new method for applying the TRACELESS marker to barcodes and other thermally printed labels.

"The TRACELESS System is just the kind of solution battery makers need to fend off counterfeiters," said Hiroshi Shimozono, General Manager of the Consumer Sales Department, SANYO Electric Co., Ltd, Mobile Energy Company. SANYO Mobile Energy Company is the world's largest manufacturer of rechargeable batteries and the maker of most of Kodak's branded lithium-ion batteries. "SANYO is working hard on many fronts to prevent counterfeiting, and we look forward to deploying the TRACELESS system on KODAK batteries."

United States Customs and Border Protection reports nearly $10 million dollars worth of counterfeit consumer electronics products were seized by officials in the first half of 2007, a 338 percent increase over the same period in 2006 (Studies by U.S. Customs and the Council on Foreign Relations indicate that about 5 percent of shipping containers entering the U.S. are scanned or opened for inspection). According to the National Electronics Manufacturing Association (NEMA) rogue batteries account for millions of dollars in losses among affected companies throughout the world and are the cause of many consumer complaints relating to safety, performance, and quality.

KODAK Security Solutions bring together the resources of Kodak's vast intellectual property portfolio, along with expertise in material science, digital imaging, document imaging, and graphic communications to create a broad portfolio of products and technologies that protect against counterfeiting. KODAK Security Solutions are backed by KODAK Service and Support, with more than 3,000 professionals reaching more than 120 countries. KODAK Service and Support professionals are uniquely qualified to provide services that control costs, maximize productivity, and minimize business risk.

About Eastman Kodak Company
Kodak is the world's foremost imaging innovator. With sales of $10.7 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; and Creative Professionals rely on KODAK technology to uniquely tell their story through moving or still images.

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

For more information about Kodak's Graphic Communications Group, visit http://www.graphics.kodak.com.

(Kodak and Traceless are trademarks of Eastman Kodak Company.)

2008