Qualex, Kodak's Wholesale Digital and Analog Photofinishing Subsidiary, Introduces New Products and Services

    Broadest Range of Scalable, Adaptable, Flexible Services Enables
    Retailers of all Sizes to Participate in Burgeoning Photo Specialty
    Products Market

    LAS VEGAS, Jan. 31 /CNW/ - Qualex, a subsidiary of Eastman Kodak Company
(NYSE:  EK) introduces new products and services creating one of the most
comprehensive portfolios of photo fulfillment solutions available to all U.S.
and Canadian customers. Qualex enables its partners with B2B and B2C solutions
to participate profitably in the photo category.
    "By limiting the need for expensive capital expenditures in our rapidly
changing industry, Qualex enables its customers to focus on and tap into these
high-margin, high-profit custom output solutions bringing their business to
its full potential," said Mark DeSimone, president of Qualex and vice
president, Eastman Kodak Company. "We expect our partners to leverage the
Qualex expertise, technology, and distribution network to maximize their
business potential."
    At PMA, Qualex unveiled a series of new product offerings, due to the
market in 2008, all with a focus on higher revenue products for our customers.
These offerings include:

    -   New Output Options: Qualex will offer new calendar technology; more
        than 100 new photo gift options from online and courier services;
        silver halide posters in a wide range of sizes; custom cover photo
        books in various sizes and new colour choices in hard and soft cover
        books; and KODAK Picture DVD.

    -   New Premium Photofinishing Services and Content: Qualex will offer
        expanded KODAK Photo Restoration and Makeover services with high-
        value add-ons for output; New KODAK Digital Art services in four
        categories (Fun Series, Kid Series, Fine Art and Pop Art) with a
        variety of options for high margin output from favorite digital
        photos; and custom and standard framing services.

    -   New Licensed Content: Qualex announces agreements with several
        industries, including toy and entertainment, to bring licensed
        products for some of the world's best-known brands to our customers,
        providing yet another vehicle for high revenue photo products.
        Agreements for the usage of licensed properties include (but are not
        limited to) Hasbro and Warner Bros.

    -   Enhanced Input Capabilities: Qualex will offer its customers
        additional ways by which consumers can input both their analog and
        digital photographs. These include

        1. KODAK Print Scanning Services, which takes consumers shoeboxes of
           photos, scans them and returns them with a KODAK Picture DVD and
           an upload to their online account.

        2. Online connectivity from KODAK Picture Kiosks directly to Qualex
           to access photo gifts and other products the retailer chooses to
           enable Qualex to produce.

    "The breadth and depth of our product portfolio resonates with consumers
of all ages," said David Glover, Vice President of New Business & Product
Development, Qualex. "And for those who want to reach a specific niche in the
photo business or provide a comprehensive solution for all their photo needs,
Qualex is the manufacturer of choice for you."

    Qualex services more than 20,000 retail store locations and several
hundred online retailers from five production facilities in the U.S. and one
in Canada, with ship-to-store and ship-to-home delivery options. Because it
leverages an open architecture, Qualex's facilities can interface with almost
any technology and/or equipment.

    -   Qualex leverages its broad product portfolio, distribution network
        and operational excellence to deliver a turnkey solution. Qualex can
        produce photo products, such as photo books, calendars, cards, prints
        from single images or collages, photo gifts from mugs & mouse pads to
        more specialized items like blankets and engraved crystal. When
        working with Qualex, customers can leverage that expertise and
        network to have a "one-stop location" for all their photo specialty

    About Qualex Inc.

    Qualex Inc. is one of the largest wholesale photofinishing companies in
the world. Qualex offers traditional print and digital output solutions by
operating a large network of commercial labs throughout the United States and
Canada. The company is a wholly owned subsidiary of Eastman Kodak Company and
is headquartered in Durham, NC. Qualex and Kodak are continuously researching,
designing, and implementing innovative output technologies that allow
consumers to enjoy their pictures and images in ways never before imagined.

    About Kodak Canada Inc.

    For more than a century, Kodak Canada has been meeting the imaging needs
of Canadians providing leading products and services, helping people better
use meaningful images and information in their life and work. Today, Kodak
Canada's sales, marketing, service and support teams are committed to a
digitally oriented growth strategy enabling Consumers to use Kodak's system of
digital and traditional products and services to take, print and share their
pictures anytime, anywhere; Businesses to effectively communicate with
customers worldwide using Kodak solutions for prepress, conventional and
digital printing and document imaging; and Creative Professionals rely on
Kodak technology to uniquely tell their story through moving or still images.
    More information is available about Kodak Canada at www.kodak.ca.

    Editor's Note: Kodak corporate news releases are now offered via RSS
    feeds. Many RSS aggregators or readers, including my.Yahoo.com,
    NewsGator, and Google Reader, can be used to view these feeds. To
    subscribe, visit www.kodak.ca/go/RSS and look for the RSS symbol. In
    addition, Kodak podcasts are viewable at www.kodak.ca/go/podcasts.
    Podcasts may be downloaded for viewing on iTunes, Quicktime, or other PC-
    based media players. Users may also subscribe to Kodak podcasts via the
    iTunes store by typing "Kodak Close Up" in the search field at the top of
    the iTunes Store window.

    Kodak and Qualex are trademarks of Eastman Kodak Company.

For further information:

For further information: Media Contacts: Mark De Shaw, Kodak, (416)
760-4508, Mark.Deshaw@Kodak.com; Andrea Buczko, Ketchum, (416) 355-7429,

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