VERNON HILLS, Ill.--July 3, 2002--Centiv, Inc. has filed a lawsuit in Illinois state court seeking to prevent the termination by Encad, Inc., a wholly owned subsidiary of Eastman Kodak Company of a multi-year supply agreement between Centiv and Encad. Encad filed a counterclaim seeking substantial alleged damages for past and future lost profits and expenses based upon claims that Centiv breached the supply agreement. At the initial hearing on the case, the parties agreed to a temporary court order ensuring that Centiv would have access to the products supplied by Encad through an Encad reseller at non-wholesale prices. "We believe that Encad's termination of our agreement is their reaction after failing to be selected by a large Centiv customer for a large equipment upgrade later this year" said William Rychel, Centiv's President and CEO. "It is unfortunate that Encad has taken this action against Centiv as the result of our customer's decision to replace certain Encad equipment. We believe that Encad's counterclaim is without merit. We intend to pursue our claims and contest Encad's counterclaims vigorously."