Digital Capture SPG

September 2006

Eastman Kodak Company Confidential CDG 2nd Quarter 2006 Results

ƒ Making good progress - Emerged from 1st Half ‘06 having dealt with higher industry wide retail inventory.

ƒ Q3 Revenue ¾ Consumer Digital Imaging Group sales were $640 million, down 3% ¾ Digital capture sales down 7% ¾ Home printing solutions declined 7%.

ƒ Q3 EFO ¾ Consumer Digital Imaging Group earnings of $24M, compared with a loss of $61M in Q3 2005

2 Going Forward in 2006

¾ Focus on sales that provide best profit

¾ Market realities such as industry wide peak in digital camera sales and substantial slowdown in snapshot printer sales

¾ Making changes to address the business realities

3 Call to Action

ƒ Focus of Profitable Digital Revenue Growth ¾ Delivering on our key metrics for 2006 ¾ Digital Revenue Growth ¾ Digital Earnings ¾ Investable Cash Flow

ƒ Operationalize the Digital Business Model ¾ Relentless discipline in Design, Supply Chain, Operation, GTM Models ¾ Stable, Scaleable, Lean Processes

ƒ Continue to Grow the Franchise ¾ Consumer value propositions ¾ Continue to strengthen our brand in digital

4 DigitalDigital CaptureCapture SPGSPG PortfolioPortfolio

Digital Cameras & Accessories Mobile Imaging

Memory Snapshot Printing Intellectual Property

5 Digital Cameras & Accessories

6 Essence of Kodak EasyShare Cameras

ƒ Ease of Use ¾ 1st time and repeat

ƒ Sharing life ¾ Connecting people

ƒ Beautiful Pictures ¾ Beautiful memories

7 Growing the Franchise

ƒ Maintained a top three market position WW and in U.S. for digital still cameras ƒ Product Innovation

¾ KODAK EASYSHARE V705 Dual Lens Digital Camera -- the world's smallest ultra- wide-angle optical zoom digital camera ƒ For third year in a row, Kodak ranks as the highest brand in customer satisfaction among digital cameras in the $200-$399 price segment (nearly half of the U.S. market)

8 Building the Digital Operating Model

ƒ Design / Manufacturing Model ¾ Flextronics partnership announced on August 1st ƒ Supply Chain ƒ Go-To-Market ¾ Focus on 18 key countries ƒ Marketing Management ƒ Integrated P&L

9 Accessories & Memory

Breadth of line enhances retail/retailer.com position Options bolster Camera line, enhance overall profitability

Camera docks Flash/Optics Photography Gear Kits/Miscellaneous

Kodak Memory support all Camera series products and most competitive products

Lexar current licensee of Kodak Memory products World Wide

10 Digital Cameras Snapshot Printing

11 Snapshot Printing

ƒ Digital Camera Accessory

ƒ Kodak Market Leader

ƒ #1 in Easy Printing

ƒ Margin Expansion – Mix & Media

12 Mobile Imaging

13 Mobile Participation

ƒ Focused on the Consumer ¾ Innovate in compelling new connected imaging experiences ¾ Accelerate business models in ¾ services and printing ¾ imaging components & imaging handsets ¾ Leverage core assets and consumer knowledge to build profitable partnerships ƒ Motorola Partnership ¾ 10 year agreement ¾ Cross licensing of Intellectual property ¾ Imaging handset co-development ¾ CMOS imaging sensors ¾ Seamless integration of Motorola mobile devices with Kodak kiosks, home printing solutions and Easyshare Gallery

14 Intellectual Property

15 Kodak’s Intellectual Property Strategy

ƒ Design freedom for Kodak businesses.

ƒ Gain additional IP via cross licensing.

ƒ Competitive advantages for Kodak in selected markets & products.

ƒ Generate royalty revenue

ƒ Open doors to new products and markets

16 Kodak’s Strong DSC IP Position

ƒ First to develop key DSCs ¾ Kodak’s 1st DSC patent was filed in 1976 ¾“Electronic still camera”, Lloyd & Sasson ¾ Kodak’s early DSCs include ¾1st portable professional DSC ¾1st color consumer DSC ¾1st consumer megapixel DSC ƒ Long term IP focus ¾ It’s about Quantity and Quality ¾ 1,000+ Worldwide patents ¾ Top 30 Global Company granted U.S. patents ¾ Many patents documented against various Digital Cameras, Camcorders, and Camera Phones

17 DigitalDigital CaptureCapture SPGSPG PortfolioPortfolio

Digital Cameras & Accessories Mobile Imaging

Memory Snapshot Printing Intellectual Property

18 Digital Capture Portfolio Summary

Digital Cameras Snapshot Mobile IP / Royalties & Accessories Printing SPU’s

Digital Cameras Snapshot Printers Mobile Handsets Intellectual Property Camera Accessories Thermal media Accessories Batteries Memory Accessories Products

Leverage EK Margin Expansion, New Operating High Growth Industry, assets, Create Model, Maturing Industries Portfolio Expansion, Profitable Leverage EK assets Business SPU Role Models

19 © 2006 Eastman Kodak Company. All rights reserved.