FILM GIANT GROWS AGAIN KODAK ENTERS SERVICE SECTOR.

Byline: Greg Hernandez Staff Writer

Film giant Eastman Kodak Co. said Friday that it has agreed to buy Laser-Pacific Media Corp. for $30.5 million in an effort to establish a presence in the television post-production market.

Hollywood-based Laser-Pacific provides film processing, film transfer, editing, mastering, digital preview service and DVD compression for television, home video and motion pictures.

Wall Street analysts applauded the deal.

``It expands their post-production, and the price they are paying isn't expensive,'' said Ulysses A. Yannas, an analyst with Buckman, Buckman & Reid in New York. ``It's a very nice little piece they are adding, and the exposure should help them.''

Laser-Pacific will operate as a wholly owned subsidiary of New York- based Kodak, the world's largest maker of photographic film. Kodak will acquire outstanding shares of Laser-Pacific at a price of $4.22 per share.

The subsidiary will be led by Emory Cohen, co-founder and president of Laser-Pacific.

``This blending of capabilities will benefit both our customers and our staff,'' Cohen said. ``We will provide Kodak with unique insights into the needs of the industry and proven strong know-how. At the same time, we will benefit greatly from access to Kodak color science and imaging technology.''

Laser-Pacific, which had $3.3 million in net debt as of March 31, was founded in 1990 and has won six Emmy Awards for outstanding achievement in engineering development.

Laser-Pacific and Cinesite, Kodak's visual-effects and digital-restoration and -mastering subsidiary, will make up the hub of Kodak's worldwide entertainment imaging services group.

``The motion picture industry is at a crossroads,'' said Bertrand Decoux, a Kodak general manager who will lead the group. ``By playing a larger role in the service sector, we can ensure that the support our customers need is both accessible and affordable, while maintaining high image quality standards and creating work of greater value.''

The move by Kodak is part of an overall growth strategy the company has put into motion this year. It is already the world leader in providing film, digital and hybrid motion imaging products, services and technology for the television, feature film and new media industries.

``They have up to $300 million worth of acquisitions they are looking to do by year's end so this is about 10 percent of that,'' Yannas said. ``They will be picking up small pieces all along in areas where they think they can be strengthened and in areas where they think there can be considerable growth.''

Greg Hernandez, [phone]

greg.hernandez(at)dailynews.com