Kodak to Realign Imaging Group

ROCHESTER, N.Y., Sept. 20 --Eastman Kodak Co. announced today it will begin "actions that will result in the repositioning of the management and product lines" of its Commercial Imaging Group (CIG) into allied businesses.

This move follows the sale by Kodak in August of its Remote Sensing Systems operation to ITT Industries Inc. for $725 million. RSS was among the largest operations in the CIG, accounting for approximately 27 percent of its revenue in 2003. The remaining operations of CIG include high-performance document scanners and services, business process services, optics and aerial and industrial film.

Antonio Perez, Kodak's president and COO, said, "This move will better align the company's operating units and its senior executive talent to execute on our digitally oriented growth strategy."

"The anticipated repositioning of CIG complements the company's strategy of accelerating growth in commercial, consumer and health markets by deploying CIG's management talent to lead larger organizations," Kodak said in a statement. It said the changes will be effective Jan. 1.

Carl A. Marchetto, president, Commercial Imaging Group, will become the COO of Kodak's Digital & Film Imaging Systems Group (D&FIS) and will remain a senior vice president of Eastman Kodak Co. Until Jan. 1, all CIG units will continue to report to Marchetto.

Kodak said the following changes in CIG operations, for which planning is already underway, will begin in January:

Graphic Communications Group will receive from CIG the Document Products & Services operation (high-speed document scanners, microfilm and worldwide service and support), as well as the Business Process Services operations. Graphic Communications will integrate the service functions of its subsidiaries -- Encad Inc., Kodak Versamark and NexPress Solutions -- and those of CIG's Document Products operation into one service operation that will do business under the Kodak name. Other anticipated changes include the redeployment of the Aerial & Industrial Materials operation to Digital & Film Imaging Systems. This organization makes aerial films and other specialized film for industrial use.

For more information, visit: www.kodak.com