Amid rumors of multiple players seeking to acquire Scitex's profitable wholly-owned U.S. subsidiary, Scitex Digital Printing (SDP), Eastman Kodak Company announced that it would be purchasing SDP in a cash deal valued at $262 million. SDP is headquartered in Dayton OH , employs 733 people and had reported sales of $157 million in 2002. Reported sales revenues through the third quarter of 2003 were $128 million with operating income of $12 million, and Scitex's CEO Nachum Homi Shamir projected continued double digit growth for the fourth quarter of 2004. Scitex Digital Printing provides Kodak with another path to commercialize its proprietary inkjet technology. Kodak intends to incorporate its unique inkjet technology, workflow solutions and color science into future Scitex Digital Printing systems to broaden the range of applications that these devices can fulfill.

The transaction will be subject to normal regulatory processes, and is expected to close in the first quarter of 2004.

Kodak and Scitex conducted a joint analyst call detailing the transaction. Kodak's Chairman and CEO, Daniel Carp, reiterated his belief that Kodak stands to reap significant benefits from participating in what he categorizes as a rapidly growing part of the commercial print space, referring specifically to variable data printing. Kodak's presence in that space already includes Encad, and its two joint ventures, NexPress and Kodak Polychrome Graphics (KPG). Carp characterized the SDP acquisition as an example of acquisitions we are making in pursuit of the company's digital strategy which marks a clearly visible step forward in the implementation of Kodak's commercial print strategy.