Kodak Revolutionizes the Inkjet Industry.

New Line of All-In-One Inkjet Printers Produces Durable, High-Quality Documents and Photos;

Low-Cost Premium Inks Save Customers up to 50 Percent on Everything They Print

NEW YORK -- Eastman Kodak Company (NYSE: EK) today entered the consumer inkjet industry with a revolutionary new product line for the home.

KODAK EASYSHARE All-in-One Printers will enable consumers to affordably print crisp, sharp documents and KODAK lab-quality photos at home using premium, pigment-based inks that will save consumers up to 50 percent on everything they print. The three new printers provide ultimate levels of print quality and ease-of-use, while offering low total cost of ownership compared to other leading consumer inkjet printers on the market.

"After today, the inkjet market will never be the same," said Antonio M. Perez, chairman and chief executive officer, Eastman Kodak Company. "We are changing the rules in this industry to ensure that consumers can affordably print what they want, when they want, easily and at the high level of Kodak quality they've come to expect."

"For far too long, people have felt restrained from printing due to the high cost of ink," Perez said. "Our new system gives consumers the freedom to print documents and photos frequently, easily and affordably with exceptional quality that lasts a lifetime under typical home display conditions. Our extensive history in printing, combined with our legendary dedication to the consumer, puts us in a unique position to revolutionize inkjet printing."

Finally - Inks for People Who Like to Print

The KODAK EASYSHARE AiO Printers use Kodak's premium, pigment-based ink, priced at $9.99 for a cartridge of black ink and $14.99 for a five-ink color cartridge (US MSRP). For every $15 spent on color ink and $10 spent on black ink, consumers can print the same number of pages at half the cost of other consumer inkjet printers. When the KODAK Photo Value Pack is purchased, a 4 x 6-inch photo costs as little as 10 cents per print.

According to a study by InfoTrends, the greatest obstacle to printing at home is the cost of ink and supplies.

"For years, the high price of inkjet cartridges has kept consumers from freely using their printers," said Perez. "With affordable premium inks, families can now create crisp documents and KODAK lab-quality photos at home."

All-In-One Printers Available in March - Featuring KODACOLOR Technology 

The KODAK EASYSHARE AiO Printers feature exclusive KODACOLOR Technology that enables consumers to cost-effectively print crisp documents and KODAK lab-quality photos. KODACOLOR Technology is a combination of four key elements--pigment-based inks, micro-porous photo papers, color and image science, and the Micro-Electro-Mechanical-Systems (MEMS) print head--that deliver outstanding results for general-purpose printing of text and graphics and stunning color photos that are sharp and vibrant.

* The KODAK EASYSHARE 5100 All-in-One Printer ($149.99 US MSRP), featuring print, scan and copy capabilities, delivers high-quality documents and photos for users who enjoy printing without limitations. The device can print and copy up to 32 pages per minute in black and 22 pages per minute in color, and print photos from PICTBRIDGE-enabled cameras without involving a PC.

* The KODAK EASYSHARE 5300 All-in-One Printer ($199.99 US MSRP) builds on the 5100's features by offering a 3-inch color LCD display that enables photo viewing and cropping directly from the printer. Memory card slots provide an additional quick and simple way to print digital pictures without a PC.

* The KODAK EASYSHARE 5500 All-in-One Printer ($299.99 US MSRP) is the perfect solution for home-office users and connected families who want to do it all with no constraints. In addition to sharing the features of the 5100 and 5300 printers, the 5500 has fax functionality and includes a 2.4-inch color LCD display, an automatic document feeder and a duplexer attachment.

Beginning in March 2007, the KODAK EASYSHARE 5100 and 5300 AiO Printers will retail exclusively at Best Buy locations across the United States.

The 5500 is expected to begin shipping in May 2007. Online shoppers will be able to purchase the printers in April 2007 at the KODAK Store (www.kodak.com).

Kodak Spills the Ink on the High Cost of Printing

Kodak's unique marketing campaign for its inkjet solutions, which is intended to raise awareness of the high cost of printing in the consumer inkjet market, is being previewed at a launch event held today at NBC Studios in New York City. The company also introduced a new Web site - www.inkisit.com - to provide consumers with an entertaining look at issues surrounding traditionally high-cost ink.

The site includes interactive games; videos of a comedic, mock-TV show called "Ink Is It"; a print-cost calculator for consumers to determine how much they are currently spending on ink; and detailed information about the new line of products. Over the next few months, Kodak will release several new videos, introduce new prize contests and provide other interactive, consumer-oriented features on the Web site.

"For too long, consumers have complained that ink costs too much; that quality, durability and longevity is not good enough; and that printers are too hard to use," Perez said. "That stops today - because of Kodak and our revolutionary approach to inkjet."

Editor's Note: For more information, including media b-roll, product photography, podcast, and a blog posting by Susan Tousi, Kodak R&D Manager, Inkjet Systems, go to:

* http://www.kodak.com/go/mediabroll/ (Media B-Roll)

* http://www.kodak.com/go/media_events (Podcast/Product Photography/Fact Sheets)

* http://1000nerds.kodak.com/ (Blog)

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, and Kodacolor are trademarks of Eastman Kodak Company.

                  INKJET MARKET BACKGROUNDER

Inkjet Printer Market Overview

The total market revenue for inkjet printers, when combined with ink and media, is more than $45 billion per year according to LYRA Research (Hard Copy Supplies Advisory Service, First-Half 2006 Forecast). The current retail sales model for this highly profitable business consists of selling low-priced printers along with high-priced inks. This model drives the consumer's total cost of ownership (TCO) much higher than is originally assumed at the time of the initial hardware purchase. Replacement brand-name ink cartridges can range from $30 to $85 each. Based on this pricing, replacement ink, when bought by the cartridge, could cost in the range of $4,000 to $5,000 per gallon. This model results in consumer dissatisfaction and printing constraint.

Obstacles to Printing at Home

According to a study by InfoTrends, the greatest obstacle to printing at home is the cost of ink and supplies.

Based on extensive studies by Kodak, more than 70 percent of people limit their own printing or that of their children. Of those, about 30 percent say they would print more if ink were priced lower.

Please refer to Chart 1: InfoTrends 2006.

Kodak believes that significant opportunity exists to address the needs of value and quality-focused families with high-volume printing needs, a segment that represents approximately 35 percent of the household inkjet market. This group prints frequently, purchasing more than the industry average of 4.6 cartridges per year. These high-burn households are generally families with children who frequently print school projects, e-mails, order confirmations, bank statements, craft projects and photos.

Kodak Breaks the Inkjet Industry Mold

According to a study by Lyra Research, the three key features consumers look for when purchasing a home printer are lower-cost ink cartridges, higher photo print quality and ease-of-use.

Please refer to Chart 2: Lyra Research 2004, US Home Printing Survey.

The time is right to offer a new choice in consumer inkjet printing. Kodak is introducing a revolutionary inkjet printing system that breaks the industry mold - offering premium, pigment-based ink that saves consumers up to 50 percent on everything they print.

The innovative line of consumer-friendly KODAK EASYSHARE All-In-One Printers delivers high-quality, affordable black-and-white and color documents, as well as KODAK lab-quality photos with less concern over replacement ink costs.

On average, consumers who spend $15 on color ink can print 105 4 x 6-inch photos with the KODAK system, compared to only 48 4 x 6-inch photos for the leading competitors. Consumers who spend $10 on black ink can produce 349 black-and-white pages on the KODAK system, compared to 145 pages for leading competitors. This equates to 14 cents of ink per 4 x 6-inch color photo and 3 cents of ink per black-and-white page. Consumers can save even more with a KODAK Photo Value Pack, which includes a color cartridge and 180 sheets of KODAK Photo Paper, for just 10 cents per print.

Please refer to Chart 3: Comparative Test Results.

All three printer models feature exclusive KODACOLOR Technology that enables consumers to make cost-effective black-and-white documents as fast as 32 pages per minute; crisp color documents at 22 pages per minute; and KODAK lab-quality color photos in as little as 28 seconds each. KODACOLOR Technology is a combination of four key elements--pigment-based inks, micro-porous photo papers, color and image science and the Micro-Electro-Mechanical-Systems (MEMS) print head--that deliver outstanding results for general-purpose printing of text and graphics and stunning color photos that are sharp and vibrant and resist fading over a lifetime. KODACOLOR Technology enables the consumer to print without compromise. No longer does the consumer have to trade off vibrant color for longer lasting or faster printing. Now, with KODACOLOR Technology, the consumer gets all three advantages--KODAK lab-quality photos that last a lifetime, under typical home display conditions, in as little as 28 seconds.

The World Trusts Their Image to Kodak

Kodak has been in the printing business for more than 100 years and has extensive knowledge in the technology of imaging. Combining this legacy in the printing market with its commitment to ease-of-use for the consumer, Kodak is in a unique position to meet the needs of high-volume print consumers.