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 HERZLIA, Israel and ROCHESTER, N.Y., June 7 /PRNewswire/ -- Scitex Corporation Ltd. and Eastman Kodak Company (NYSE: EK) jointly announced today that they have reached agreement in principle for the acquisition of Kodak's Dayton Operations' continuous ink-jet business by Scitex for an aggregate amount of up to $70 million in cash ($35 million upon closing plus $35 million contingent on agreed performance criteria in future years).
 Based in Dayton, Ohio, Dayton Operations is a world leader in the development, manufacture and sale of computer driven, high-speed ink-jet printers. Dayton Operations' printers are used by corporations and commercial printers in a growing number of variable printing applications including sales promotion, addressing, advertising, lottery and personalized direct mail. The company's products range in price from $40,000 to more than $1 million.
 Dayton Operations' 1992 sales totaled $48 million, while first quarter 1993 sales amounted to $15 million. Dayton Operations employs approximately 360 people and operates profitably.
 The Dayton Operations sale will have no impact on Kodak's drop-on-demand ink-jet printing business, which includes the popular Diconix personal and portable printers.
 "The acquisition of Dayton Operations is a significant milestone for Scitex in its continuing drive into the domain of non-impact digital printing. We believe that the combination of Dayton Operations' technology with that of Iris Graphics, Inc., a Scitex company, will provide a wide array of digital filmless printing applications," said Arie Rosenfeld, President and CEO of Scitex. "Dayton Operations is a world leader in high-speed, continuous flow ink-jet technologies, with approximately 170 registered patents in this field. Iris Graphics, a Scitex subsidiary, is a world-leader in high-quality, full color, continuous flow ink-jet printing. Together, Iris and Dayton Operations have already begun to discuss the development of new technologies that will allow for high-speed, high-quality, color digital printing.
 "This combination places Scitex firmly as the leading player in the fast growing market for non-impact printing," Rosenfeld noted. "We believe that in the long race towards direct-to-paper digital printing, continuous flow ink-jet will provide the best solution for a wide range of applications. Following this acquisition, Scitex sales of computer driven ink-jet printers will be running at a rate of more than $130 million per annum."
 According to Rosenfeld, Dayton Operations' current general manager, Dwight Johnson, will be named president of this new Scitex company.
 Dwight Johnson commented: "While this affiliation with Scitex allows many synergistic growth opportunities in new markets, it also provides a strong under-pinning for service to its existing customers and growth in markets currently being served by Dayton Operations. Our existing customers will see a name change, but not a change in our commitment to our current customers and markets."
 "Kodak is extremely proud to have developed Dayton Operations' technology and business. We strongly believe that being a part of Scitex will continue to provide Dayton Operations and its employees an excellent future of growth and profitability," said William F. Fowble, senior vice-president and executive vice-president of Kodak's Imaging group.
 The two companies expect the transaction to be concluded by June 30, subject to the receipt of appropriate regulatory clearances.
 Scitex Corporation Ltd. is a world leader in color electronic prepress systems for the graphic design, printing and publishing markets. The company has an extensive range of products that includes creative layout and design systems, image digitizing scanners, color workstations for page assembly and retouching, digital proofers, imagesetters, and communications devices. Regional subsidiaries in North America, Europe, Japan and Hong Kong are responsible for marketing, sales and customer support.
 -0- 6/7/93
 /CONTACT: Alan K. Brakoniecki of Eastman Kodak Company, 716-724-3057; Laura Wilker, vice president, Lippert/Heilshorn & Associates, 212-838-3777, for Scitex Corp.; or Giora Bitan, corporate vice president, finance & chief financial officer, Scitex Corporation Ltd., 972-9-597307/

CO: Eastman Kodak Company; Scitex Corp. Ltd. ST: New York, Ohio IN: CPR SU: TNM

BM -- CL006 -- 5853 06/07/93 09:12 EDT
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Publication:PR Newswire
Date:Jun 7, 1993

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