Eastman Kodak Company

Kodak Announces That Lower-Than-Planned September Sales Will Reduce Third Quarter Earnings

ROCHESTER, N.Y., September 26 -- Eastman Kodak Company stated today that September sales are likely to fall short of planned levels, resulting in anticipated third quarter earnings that will be lower than the previous earnings guidance range of $1.56 to $1.66 per share.

"Our third quarter business plans required strong September sales growth to enable us to successfully offset the earnings pressures of a rising dollar, increased raw material costs and higher levels of digital investment," said Bob Brust, Chief Financial Officer. "As a result of the lower than expected sales we are experiencing in September, our third quarter earnings are likely to fall approximately $.20 to $.25 per share below our previous guidance range."

The company will provide an updated view of the fourth quarter when it announces third quarter results on Wednesday, October 18. However, if current sales trends persist and worldwide economic growth continues to slow, a downward revision to fourth quarter earnings expectations may be necessary.

Mr. Brust will host a conference call this morning at 9 a.m. eastern time. The phone number to participate in the call is 913-981-5507. The access code is 986034 (Eastman Kodak Company). The call will be recorded and available for playback by noon, eastern time, by dialing 719-457-0820 (access code 986034). The playback will be active until 5 p.m. eastern time on October 3.

Certain statements in this press release may be forward looking in nature, or "forward-looking statements" as defined in the United States Private Securities Litigation Reform Act of 1995. For example, the references to the Company's earnings expectations are forward-looking statements.

Actual results may differ from those expressed or implied in forward-looking statements. The forward-looking statements contained in this press release are subject to a number of risk factors, including: the Company's ability to implement its product strategies (including its category expansion and digitization strategies and its plans for digital products and Advantix products), to develop its business in emerging markets like China, to develop its e-commerce strategies, and to complete information systems upgrades; the successful completion of various portfolio actions; the inherent unpredictability of currency fluctuations and raw material costs; competitive actions, including pricing; the ability to realize cost reductions and operating efficiencies, including the ability to implement headcount reduction programs and facility closings timely and in a manner that does not unduly disrupt business operations, and the ability to identify and to realize other cost-reduction opportunities; the nature and pace of technology substitution; and general economic and business conditions.

Any forward-looking statements in this press release should be evaluated in light of these important risk factors.

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