Adobe Photoshop Services Introduced; Integrates Ofoto Picture Sharing and Printing in Consumer Software Products.

SAN JOSE, Calif. & COLOGNE, Germany -- Tight Integration With Adobe Photoshop Elements 3.0 and Adobe Photoshop Album 2.0 Provides Simple Way to Share Pictures and Order Prints and Specialty Photo Products

Two of the world's leading imaging companies, Adobe Systems Incorporated (Nasdaq:ADBE) and Eastman Kodak Company (NYSE:EK) today announced Adobe(R) Photoshop(R) Services provided by Ofoto, Inc. -- Kodak's online photo service subsidiary. Adobe Photoshop Services are now integrated into Adobe Photoshop Elements 3.0 software for Windows(R) and Adobe Photoshop Album 2.0 software for Windows -- bringing consumers high-quality KODAK prints, online sharing and photo merchandise directly from the software.

With Adobe Photoshop Services people can save time by placing online orders with Ofoto from within their image editing and organization applications, with just a few clicks. Customers also can create beautiful professionally bound, archival-quality Photo Books within Photoshop Elements 3.0 and Photoshop Album 2.0, and then send the entire project to Ofoto to be printed and delivered to their door, or sent as a gift directly to friends and family.

Announced earlier this month and available this fall, Adobe Photoshop Elements 3.0 for Windows is a milestone upgrade to the No.1 best selling image editing software* for consumers worldwide. Available immediately, Adobe Photoshop Album 2.0 is Adobe's award-winning software product for snap-shooters who want a fast and easy way to share a lifetime of photos. Current Photoshop Album 2.0 customers will be automatically upgraded to Adobe Photoshop Services via an online software update available in October in the U.S.

"We are thrilled about this alliance with Adobe given its leadership in imaging software and its recognition among photo hobbyists," said Lisa Gansky, general manager, Digital Imaging Services, Eastman Kodak Company. "The elegant integration of Ofoto into the Photoshop family of products makes it even easier for millions of Adobe's customers to effortlessly experience Kodak's outstanding products and services, share their favorite photos, order KODAK prints and make beautiful photo gifts."

"We chose Ofoto because we wanted our Photoshop Elements and Photoshop Album customers to have access to world-class online print services that do justice to their most precious pictures," said Bryan Lamkin, senior vice president of Digital Imaging and Digital Video products at Adobe. "Adobe Photoshop is the trusted software brand for millions of digital photographers worldwide and by partnering with Kodak and Ofoto we are certain that reputation will now extend to our new online services business, Adobe Photoshop Services."

Pricing and Availability

Adobe Photoshop Services will be available first in the U.S. in mid-October from within Photoshop Elements 3.0 for Windows and Photoshop Album 2.0, followed by services delivered in Europe by the end of 2004. Customers can purchase high-quality prints at low prices: 4x6 prints for US$0.29, 5x7 prints for US$0.99 and 8x10 prints for US$3.99. Poster size and wallet sheet prints are also available. Professionally bound photo books make great affordable keepsakes and holiday gifts starting at US$29.99.

Shipping in October, Adobe Photoshop Elements 3.0 for Windows XP (Home, Professional with Service Pack 1 or Windows 2000 with Service Pack 4) has an estimated street price of US$99.99 and is available for pre-order today at www.adobe.com and www.amazon.com.

About Eastman Kodak Company and infoimaging

Kodak is the leader in helping people take, share, print and view images -- for memories, for information, for entertainment. The company is a major participant in infoimaging, a $385 billion industry composed of devices (digital cameras and flat-panel displays), infrastructure (online networks and delivery systems for images) and services & media (software, film and paper enabling people to access, analyze and print images). With sales of $13.3 billion in 2003, the company comprises several businesses: Health, supplying the healthcare industry with traditional and digital image capture and output products and services; Graphic Communications Group, offering on-demand color printing and networking publishing systems consisting of three wholly owned subsidiaries: Encad, Inc., NexPress Solutions, and Kodak Versamark; Commercial Imaging, offering image capture, output and storage products and services to businesses and government; Display & Components, which designs and manufactures state-of-the-art organic light-emitting diode displays as well as other specialty materials, and delivers imaging sensors to original equipment manufacturers; and Digital & Film Imaging Systems, providing consumers, professionals and cinematographers with digital and traditional products and services.

About Adobe Systems Incorporated

Adobe helps people and businesses communicate better through its world-leading digital imaging, design and document technology platforms for consumers, creative professionals and enterprises. Adobe's revenue in its last fiscal year exceeded $1.2 billion. For more information about Adobe, visit www.adobe.com.

* Source: The NPD Group/NPD Techworld, September 2003 - May 2004

(C) 2004 Adobe Systems Incorporated. All rights reserved. Adobe, the Adobe logo, and Photoshop are either registered trademarks or trademarks of Adobe Systems Incorporated in the United States and/or other countries. Kodak is a trademark of Eastman Kodak Company. All other trademarks are the property of their respective owners.