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 Amount Nearly Triples Original Forecast;
 Employment to be Reduced by 10,000 by End of 1995
 ROCHESTER, N.Y., Aug. 18 /PRNewswire/ -- Kay R. Whitmore, chairman, president, and chief executive officer of Eastman Kodak Company (NYSE: EK), told Kodak shareowners in a letter today that the company plans to generate $2.8 billion in positive cash flow between January 1993 and the end of 1995, and that the "proceeds would be used to reduce borrowings."
 Whitmore said the $2.8 billion to be generated would be exclusive of the announced spin off of Kodak's Eastman Chemical Company or any future portfolio decisions. That amount, he wrote, will be "nearly three times the cash flow from continuing operations we would have generated if we had continued without any adjustment."
 Whitmore also pointed out that the steps to be taken would result in a decrease in employment. "Despite the expected growth of the company's business," he wrote, "the necessary increases in productivity will require painful measures. By the end of 1995, we expect that 10,000 jobs will have been eliminated worldwide. That number excludes the 2,000 jobs eliminated largely in the Imaging Group earlier this year."
 As announced on August 6, Whitmore will step down as chairman, president, and CEO at the request of the company's board of directors when an external successor is appointed. However, he said, his work on improved cash flow and other strategies to improve the company's performance is going forward with the encouragement of the board.
 In his letter, Whitmore offered a year-by-year breakdown of the cash flow targets: $700 million in 1993; $1.0 billion in 1994; and $1.1 billion in 1995.
 "To achieve those targets," the letter said, "our plans call for reducing capital spending to the level of depreciation, capping both R&D and SADA expenses, and pursuing opportunities to turn assets to cash."
 Whitmore said the goal of these actions is "to drive this company and its businesses to top-quartile performance, based on comparison with peer companies, in terms of earnings, return on assets, and the effectiveness and efficiency of our functional and operational parts." In doing so, he noted, the company intends "to move our credit rating to a strong single A from our current A- rating."
 Whitmore emphasized that "Kodak is not a company in crisis. At its core, Kodak remains a very strong company and intends to become stronger. In every one of its businesses, Kodak is a leader.
 "Nevertheless," he wrote, "our cost of commercializing technology and marketing is still higher than it should be. We are committed to changing this. We are committed to intelligent growth, as well. But Kodak will not grow its business simply for the sake of generating sales, or spend for that purpose alone. This company is interested in profits, returns, and improved margins.
 "This will be a different Kodak: more focused, more demanding, unwilling to settle for second-best in terms of performance, more attractive to investors, even more attentive to customers and consumers, more formidable to competitors, and a source of great pride to employees.
 "Kodak is moving in the right direction and we will continue the momentum. My commitment is to ensure that Kodak's new leadership benefits from the progress we are making and, then, to effect an orderly transition of management authority."
 -0- 8/18/93
 /CONTACT: Ronald C. Roberts, media relations, Eastman Kodak Company, 716-724-4513/

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

BM -- CL005 -- 3845 08/18/93 08:02 EDT
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Publication:PR Newswire
Date:Aug 18, 1993

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