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KODAK & STERLING WINTHROP DESCRIBE SUCCESSES SINCE ACQUISITION

 Pharmaceutical Pipeline Foundation for Leadership
 NEW YORK, Dec. 17 /PRNewswire/ --Eastman Kodak Company (NYSE: EK)


and subsidiary Sterling Winthrop Inc. today described the company's emergence as a global leader in pharmaceuticals, resulting from a carefully planned strategy. Company executives also described how Sterling Winthrop's world-class pharmaceutical research and development pipeline promises to bring further value to Kodak.
 "Sterling Winthrop is not the same company acquired by Kodak in 1988," said Kay R. Whitmore, Kodak CEO. Sterling Winthrop has:
 -- Reinvented itself through a series of major operational improvements.
 -- Forged an innovative transnational alliance with Elf Sanofi enabling Sterling Winthrop to stand among the industry leaders in terms of R&D and as an emerging leader in the top tier relative to global revenues.
 -- Focused the content of its R&D pipeline, resulting in a stream of new products that begins in 1993 and thereafter remains continuous.
 The companies also revealed an innovative technology that promises to significantly improve the bioavailability of crystalline drugs, resulting from collaboration between Kodak and Sterling Winthrop scientists. This broadly patented capability applies to all forms of crystalline drugs.
 In a meeting here with investors, management described a revitalized and highly focused research and development program that includes dozens of promising compounds for diagnostic imaging, oncology, cardiovascular medicine, the treatment of chronic inflammatory diseases, and other unmet medical needs. In doing so, they reviewed a number of performance and operational improvements achieved by Sterling Winthrop.
 "Kodak's expansion into pharmaceuticals was a strategic move designed to broaden our participation in the highly attractive market for health care products," said Whitmore. "During the past four years, Sterling Winthrop has transformed itself into a major player in the pharmaceuticals industry and is a strong contributor to our Health Group, and as a result, to Kodak."
 "Based on the pace of our progress thus far, I'm confident that the acquisition of Sterling Winthrop today makes greater sense than ever for our customers and shareowners alike," Whitmore said.
 Whitmore also noted that the companies have achieved important operational synergies. "Kodak's scientific expertise and capabilities in chemistry have made substantial contributions to Sterling Winthrop," he said.
 Chief among them is the capability to extend micronization to new horizons with a patented technology for producing "nanoparticles." This capability will enable Sterling Winthrop to produce tiny particles of a medicine, as small as 400 nanometers or less.
 Clinical research indicates that nanoparticulate technology can greatly improve the bioavailability (absorption and distribution in the body) of pharmaceutical products. Kodak pioneered this technology for its imaging products. Sterling Winthrop scientists believe it offers general utility for a range of pharmaceutical applications including therapeutics and diagnostic imaging agents.
 Sterling Winthrop Chairman Louis P. Mattis noted that the company's sales are up 13 percent on a comparable basis for the first nine months of 1992 and described the company's strong performance since acquisition. Among the results:
 -- Pharmaceutical sales grew at the compound annual rate of 13 percent worldwide and 17 percent in the U.S.
 -- Consumer health sales grew at the compound annual rate of 6 percent worldwide and 12 percent outside the U.S.
 -- Earnings from operations up at a compound annual rate of 11 percent.
 -- Manufacturing margins are up 4 points.
 -- EFO per employee up more than 100 percent.
 "During this same time frame, we integrated Kodak's research efforts into Sterling Winthrop and nearly tripled our overall commitment to R&D," Mattis said. "We also refocused our R&D efforts in core categories of major unmet medical need and entered into a global alliance with Elf Sanofi, a leading French health care company."
 Between Sterling Winthrop and Elf Sanofi, some 30 compounds are candidates for co-development. Elf Sanofi's strength in cardiovascular medicine, endocrine diseases, and the central nervous system, complements Sterling Winthrop's core R&D categories of diagnostic imaging, oncology and chronic inflammatory diseases.
 The combined R&D efforts of the two companies rank among the leaders in the pharmaceutical industry. Combined pharmaceutical sales ranks the alliance among the top 20 pharmaceutical companies worldwide.
 Sterling Winthrop is a leading supplier of contrast agents -- products that enhance X-ray and CT scan procedures -- in the U.S. The company's leading consumer products include the Bayer brand of analgesics in the U.S., and popular Phillips' and Midol brands.
 Kodak's Health Group sales of approximately $5 billion already rank that company as one of the world's largest suppliers of products for health care. This segment includes highly attractive businesses in medical X-ray imaging, clinical diagnostics, and household products, as well as Sterling Winthrop with its portfolio of pharmaceutical and consumer health products.
 "Kodak's market position in medical imaging and clinical diagnostics is enhanced by Sterling Winthrop's position as a leading supplier of contrast agents used in diagnostic imaging," said Wilbur J. Prezzano, President of Kodak's Health Group. "We may well have one of the strongest overall diagnostic franchises of any supplier."
 He termed Sterling Winthrop's pharmaceutical strategy as the "cornerstone" of Kodak's long-term health participation strategy.
 -0- 12/17/92
 /CONTACT: Paul C. Allen of Eastman Kodak Company, 716-724-5802/
 (EK)


CO: Eastman Kodak Company ST: New York IN: MTC SU:

KK -- CL008 -- 8098 12/17/92 09:53 EST
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Date:Dec 17, 1992
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