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Kodak Unveils New Organization; Jacobson to Become COO

Press release from the issuing company

ROCHESTER, N.Y. - January 28 - Eastman Kodak Company's Graphic Communications Group (GCG) today announced plans to create a new organization designed to deliver on its commitment to present a single face to the market. To be planned and implemented with the closing of Kodak's acquisition of Norwalk, Conn.-based Kodak Polychrome Graphics (KPG), the new organizational structure will consist of two operating units, a strong regional infrastructure and integrated sales and service organizations across Kodak's complete Graphic Communications Group solutions portfolio. Upon completion of the KPG acquisition, integration teams will plan and implement the new organization for Graphic Communications Group into the following two operating units: -- Graphic Solutions & Services will include three strategic product groups (SPGs) and will be led by Jeff Jacobson, currently CEO of KPG, who will become the Chief Operating Officer of GCG, and President of the Graphic Solutions & Services business. The SPGs are: - Digital Solutions - this will include Kodak's electrophotographic (EP) portfolio, its wide-format inkjet portfolio, workflow solutions, professional service, publishing services, inkjet proofing and storage. - Prepress Solutions - this will include printing plates, film, proofing, flexo plates and supplies, approval equipment and computer-to-plate equipment. - Global Services and Solutions - this will include Kodak's integrated service force, as well as providing outsourced service for third-party equipment. -- Transaction & Industrial Solutions will be led by Nachum "Homi" Shamir, currently CEO of Kodak Versamark and Vice President, Eastman Kodak Company. Shamir will become President of Transaction and Industrial Solutions, which will consist of Kodak's full line of high-speed, high-volume continuous inkjet technology designed for applications including transaction printing, mailing, book printing, newspapers and industrial printing, among others, as well as Kodak's market leading document scanning technology and the company's business process services business. After the closing of the KPG transaction, Jacobson will be responsible for integration of R&D, commercialization, manufacturing, product marketing and administrative functions of Encad, NexPress and KPG into a single organization. Jacobson will also direct all activity associated with formation, integration, development and management of unified regional structures to provide one sales and service organization to support all GCG businesses. After the closing of the KPG transaction, Shamir will lead the integration of Kodak Versamark, the Document Imaging business of Kodak Document Products and Services, and Business Process Services into a single operating unit. Shamir will lead the R&D development and manufacturing of advanced inkjet and scanning technologies for GCG; and Shamir will manage regional product and sales specialists. Both Jacobson and Shamir will report to James Langley, President, Graphic Communications Group and Senior Vice President, Eastman Kodak Company. "2004 was spent constructing the GCG solutions portfolio. Each business and technology was carefully chosen, and I am very pleased with what we have accomplished," said Langley. "Now we have the right products and services and one of the strongest management teams in the graphic communications industry. Our focus in 2005 will be integrating these businesses to drive growth for our customers, for our shareholders and for our employees." Functional units will operate as shared service organizations, supporting all of Graphic Communications. These functional units will include: Chief Technology Office, Finance, Human Resources, Marketing, Operations, Special Projects and Strategy. These changes reflect Kodak's commitment to serve its customers and show the graphic communications industry the breadth and depth of the solutions provided by the company. The new organization will focus GCG's sales, marketing, R&D, product development and service on the key markets that will drive Kodak's growth. "As we integrate these businesses and create a single sales force with a strong account management, service and support structure, customers will see a sharper message and even better customer support, service and solutions," Langley said. The organization will be planned and implemented with the closing of the KPG transaction, which is expected in April 2005. Kodak will provide more details on integration at that time.