WARMINSTER, Pa., and DAYTON, Ohio – September 20, 2004 – Transcontinental CC3, one of the fastest-growing direct marketing services providers and printers in the United States, and Kodak Versamark, Inc., which is part of Kodak’s Graphic Communications Group and a leader in digital printing solutions, announced today that the KODAK VERSAMARK VX5000 Printing System is now fully operational at Transcontinental CC3’s Warminster operation. This makes Transcontinental CC3 the first direct marketing services provider to offer the VX5000 continuous inkjet printing system to direct marketers. With a capacity of up to one million impressions per day, the VX5000 is an integrated digital printing system capable of producing 100 percent variable data in black, highlight color and process color. The VX5000 system is ideal for custom, personalized marketing materials using multiple versions. For direct marketing applications, the VX5000 system helps Transcontinental CC3 blend traditional litho printing and personalization in a customizable, high-speed process. “This move represents an investment in emerging digital technology that delivers a cost advantage to our clients,” said Don McKenzie, president of Transcontinental CC3. “And, as higher degrees of personalization and targeting become increasingly important, the flexibility that this system offers makes it an attractive option for direct marketers seeking the highest possible ROI on their campaigns with short runs and multiple-version programs.” A 2004 study, “The Future of Direct Mail,” commissioned by the Graphic Arts Marketing Information Service (GAMIS), cites that marketers are expected to employ variable content to deliver more personalized and customized direct mail. As a result, the study says, demand for digital printing and variable imaging will intensify. By 2010, digital printing is expected to grow to more than 40 percent of all commercial printing industry revenue, reaching a projected $58 billion, according to a 2003 report issued by the Graphic Arts Technical Foundation (GATF). “Transcontinental CC3 is clearly at the forefront of the merger of direct mail, customer databases, customer relationship management and digital printing,” said Kazem Samandari, executive vice president, global sales and marketing, Kodak Versamark. “The VX5000 systems are designed as the digital printing foundation of these programs, delivering high productivity, flexibility and business color quality through our proprietary continuous inkjet technology.” The Versamark VX5000 system also offers increased creative flexibility as well as variable graphics, color and personalization. Its capabilities include flexible color options, high printing speeds, flexible configuration, blended solutions and multiple finishing options. The new capabilities are now available to Transcontinental CC3’s clients, which include many of the nation’s leaders in the financial services, telecommunications, mortgage, insurance and travel and leisure industries. Transcontinental CC3 is now the only provider in the industry to offer a U.S.-based multiple-facility production model with full-service litho printing, laser personalization and fulfillment services in major metropolitan centers in the East, West and Central United States. Such a model allows clients more accurate prediction of in-home delivery dates and anticipated response times, and enables better management of back-office processes such as call centers and Web-based marketing.