Kodak, Intel Announce Series Of Agreements To Promote Pictures, Digital Imaging

Product Development, Joint Marketing Efforts Are Focal Points

ROCHESTER, N.Y., SANTA CLARA, CALIF., April 30, 1998 -- Eastman Kodak Company and Intel Corporation today announced a series of agreements with the goals of expanding the way people create, store, use and share pictures and of removing the boundaries between digital and traditional imaging.

The agreements cover four major areas:

1. Joint development efforts in digital imaging products and platforms that will take advantage of Intel's expertise in semiconductor design and manufacturing and Kodak's leadership in image science and photography.
2. A broad patent cross-licensing agreement that will allow flexibility in developing new products.
3. Upgrading Kodak's Qualex photofinishing laboratories with digitization equipment, based on Intel Architecture and new scanning equipment. This will make it possible to offer consumers an easy, low-cost way to put their photos onto CD-ROMs called Kodak Picture CDs. Consumers will be able to use these CDs in their home computers or in kiosks at retail outlets nationwide.
4. Collaborative consumer-oriented marketing efforts, which could reach up to $150 million in spending over a three-year period, will promote products resulting from the agreements announced today, as well as the new uses of digital images enabled by performance PC's.

"Working together, Kodak and Intel will create a path for consumers and professionals alike to transport their pictures into the digital world, quickly, easily, and at low cost," said George M.C. Fisher, Kodak's Chairman and Chief Executive Officer and Craig R. Barrett, Intel's President and Chief Operating Officer, in a joint statement.

The two companies will provide details of this new relationship at an event this summer.

"Pictures constitute the driving force in this series of agreements with Intel," Fisher said. "By transforming the consumers mindset from relegating pictures to an album, shoe box, or digital file to using pictures in new ways - and by enabling those uses - we will begin a new era in our industry. Indeed, Kodak's expertise in imaging, combined with Intel's leadership in processing and silicon strategy, will do for photography what the PC did for computing: We will stretch boundaries, establish new product platforms and create a multiplier effect that triggers more innovation."

"This collaboration links Intel's PC and digital imaging businesses with a company synonymous with pictures, and the resulting new products will make digital imaging better, faster and more affordable," said Barrett. "This relationship also reinforces Intel's digital imaging direction, while building on our strengths in semiconductor design, manufacturing, and the benefits of high-performance, Pentium® II processor-based PC's."

Eastman Kodak Company is the world leader in both traditional silver halide imaging and digital imaging. With major manufacturing plants in the U.S., Canada, Mexico, Brazil, England, France, Germany and Australia, Kodak markets a range of products in more than 150 countries. Those products include: photographic films, papers and chemicals for amateur and professional use; motion picture films; diagnostic imaging film and equipment; digital imaging products including cameras, scanners, sensors, and printers; copier-duplicators; microfilm, and image management systems. Kodak, headquarters in Rochester, N.Y., employs approximately 91,000 people worldwide.

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