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Kodak Completes Acquisition of Creo

June 16, 2005

Eastman Kodak Company announced it has completed its acquisition of Creo Inc., a premier supplier of prepress and workflow systems used by commercial printers around the world. Creo’s extensive solutions portfolio is now part of the Graphic Solutions & Services (GS&S) operating unit within Kodak’s Graphic Communications Group (GCG).

An important milestone in Kodak’s digitally oriented growth strategy, the acquisition of Creo uniquely positions Kodak to be the preferred partner for its customers, helping them improve efficiency, expand their offerings and grow their businesses.

In a transaction valued at approximately US$988 million, Kodak paid US$16.50 per share for all the outstanding shares of Creo, or approximately US$954 million. The value of the transaction also includes Creo’s payment of approximately US$34 million for the cancellation of options prior to the close. For 2005, the acquisition is expected to be modestly dilutive to operational earnings. Kodak expects the acquisition to add approximately $.05 per share to operational earnings in 2006 and to add approximately $700 million in revenue.

Kodak used its bank lines to initially fund the acquisition, with a portion of this debt to be refinanced in the capital markets at a future date.

“The inclusion of Creo -- its solutions and its people -- into Kodak marks another significant milestone in our journey to become the global leader in graphic communications,” said James Langley, president, Graphic Communications Group, and senior VP, Eastman Kodak Co. “The addition of a complementary portfolio of leading computer-to-plate equipment, workflow software, prepress, proofing, digital plates, scanning and image capture solutions, in addition to the highly talented Creo team, will make Kodak a stronger partner for our customers.”