Dicom Imaging Systems Forms Strategic Alliance with Eastman Kodak.

Business Editors

BELLINGHAM, Wash.--(BUSINESS WIRE)--Oct 11, 2000

Dicom to Significantly Increase

Distribution Network and Marketing Efforts

Dicom Imaging Systems (OTC BB: DCIM) today announced that it has entered into an agreement with Eastman Kodak (NYSE: EK).

According to terms of the joint marketing agreement, Kodak is granted the right to become a non-exclusive worldwide distributor of Dicom's software. Kodak will distribute the software in its Dental Digital Photography Kit 290 to its distribution network and launch a comprehensive full-scale marketing campaign. A separate agreement grants Dicom the right to purchase and resell Kodak's Dental Digital products in the U.S.A.

Dr. David Gane, President and Chief Executive Officer, stated, " We are proud that Kodak has chosen Dicom Imaging Systems as its "in the box" software provider and one of its strategic partners. The dental imaging industry is growing rapidly and we feel that we are well positioned to take advantage of this opportunity. Market acceptance of our software, growing distribution channels and our proprietary software combined with the Kodak brand and their international distribution channels is sure to be an extremely successful campaign."

Mr. Don Williams, Chief Operating Officer, stated, "The Digital Imaging Communications in Medicine (DICOM) standard as defined by The National Electrical Manufacturers Association and The American Academy of Radiology (ACR/NEMA) is rapidly becoming the accepted standard for communicating with images in the health professions. The implications of this are enormous. As a virtual first to market innovator of a DICOM compliant product in dentistry we are poised to become a world leader in dental and medical imaging. We are continually seeking agreements that will work synergistically with our short-term and long-term goals".

Eastman Kodak Company's (NYSE: EK) dental products business is a worldwide leader in imaging capture and output solutions for dental practitioners. The dental products business manufactures intraoral and extraoral dental imaging films and processing chemistry; medical inkjet printers, inks and papers; digital cameras for dental applications; COOK-WAITE brand anesthetics; and a variety of related products and services. For more information call 800-933-8031 or visit the Kodak Health Imaging Dental Products Group website at www.kodak.com/go/dental. For technical questions about any Kodak dental product, you can also call the technical support hotline at 800-933-8031.

Dicom Imaging Systems Inc. is a focused, dynamic player in the global e-healthcare market concentrating on selected fields of dental and medical imaging as well as related technology research and development, marketing and distribution. Dicom Imaging Systems, Inc. is a provider of DICOM (Digital Imaging Communications in Medicine) compliant Imaging Software to the dental industry and is currently assisting in setting the standard of DICOM compliance in dentistry by distributing a complimentary copy of its Dental Imaging Suite (TM) to dental professionals, laboratories, educational facilities and dental equipment manufacturers and dealers, through direct mail and through partnering arrangements. For more information, visit Dicom's web site at www.dicom-image.com.

Safe Harbor 

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and section 21E of the Exchange Act of 1934, as amended by public law 104-67 and is subject to safe harbor by these sections. Actual results, performance or achievements could differ materially from those anticipated in such forward-looking statements, which involve numerous risks and uncertainties.