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Kodak s1220 Photo Scanning System Demonstrated at PMA

Kodak Offers Retailers Multiple Ways to Let Consumers ‘Scan Their World’; New In-store Scanners, Software and Wholesale Solutions Demonstrated at the Photographic Marketing Association’s Convention and Exposition

Eastman Kodak Company today demonstrated a variety of in-store scanners, software and wholesale solutions that make it easy for retailers to help consumers convert their shoebox of photos into custom CDs, DVDs, or uploads, turning family histories into memorable stories.

Over the past year, Kodak has conducted consumer research and a number of retailers have participated in market trials to test consumer demand for such a service. Consumers definitively indicated they would value a service that would enable them to easily convert their shoeboxes of photos into digital CDs or DVDs. Consumers can view and share their pictures on TV or computer with the KODAK Picture Movie DVD and can access the on-line images to easily create other photo products.

“The results are compelling, consumers love the service and the options that it will offer,” said Brad Kruchten, general manager of Retail Printing Business and Vice President, Kodak. “We need to offer retailers the right set of solutions to profitably serve this untapped market, which is why we intend to bring to market wholesale service alternatives in the U.S. which require minimal investment by a retailer, as well as on-site scanning and software solutions for those who wish to offer the service in-house.”

Kodak’s testing determined that “high touch/specialized” locations such as photo specialty do well with in-store scanning solutions that provide on-site service. On the other hand, Kruchten believes that food, mass and drug retailers in the U.S. at this time may be better served by an off-site or wholesale solution due to the nature of their operations and the level of special care and handling needed to offer this service.

Wholesale Offering

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Kodak’s Qualex wholesale photofinishing subsidiary in the U.S. will offer a picture scanning service to their on-line and retail customers, launching this summer. Consumers can either pick up a kit from a participating retail location or order a kit from an on-line website. Consumers would follow the simple instructions to package all their photos and then either return the kit with their prints to the retailer, or ship it directly to Qualex.

Qualex scans the images, uploads them to an on-line account and safely stores them to a KODAK Picture Movie DVD, which can contain up to 2,000 images. The original pictures and completed KODAK Picture Movie DVD are returned in the same manner they were delivered to Qualex. The service is expected to cost less than $100.

In-Store Scanning Solutions

Kodak’s Document Imaging business is demonstrating the KODAK s1220 Photo Scanning System that is based on and includes the KODAK i1220 Scanner, allowing customers to feed multiple prints for batch scanning, and associated software to capture the photos and perform simple enhancements such as sharpening, removing red-eye and restoration. Squarely aimed at countertop services, the solution provides fast 30 picture-per-minute scans, is easy to operate, and takes little space on a desktop. Retailers have a variety of options to output the digital images to KODAK Picture CD’s, KODAK Picture Movie DVD’s and/or upload to on-line sites like KODAK Gallery.

“Recently, trade association Independent Photo Imagers ordered 150 KODAK i1220 Scanners for its membership to use in ways similar to the application we’re showing at PMA,” said Lois Powell, Worldwide Portfolio Business Manager, Document Imaging, Graphic Communications Group. “The KODAK s1220 Photo Scanning System will be available in June at an expected price to U.S. retailers for under $3,000.”

The KODAK i1220 Scanner was awarded the Association for Image and Information Management’s “Best of Show” for a hardware capture product in the 26-40 pages-per-minute category at its debut May 2006, and has since won recognition from Office Solutions Magazine and Better Buys for Business Magazine.

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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.

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