ROCHESTER, N.Y., and SANTA CLARA, Calif., June 15, 1999 - Eastman Kodak Company and Intel Corporation ushered in a new era in photography today, announcing the widespread availability of Kodak Picture CD at retailers throughout the United States.

Picture CD-a product resulting from an effort between Kodak and Intel to bridge traditional pictures and digital imaging-provides the benefits of digital pictures without the need for a digital camera. An auto-running CD-ROM that features a "magazine-style" software interface developed by Adobe Systems, Incorporated, Picture CD makes digital photography simple, automatic, fun and affordable. It incorporates a consumer's pictures and software on one CD. Users just pop it into a CD-ROM drive and pictures appear on the computer monitor. Picture CD is designed to let picture-takers explore new ways to organize, enhance, share and store the more than 20 billion photos taken each year in the United States.

"Picture CD lets people integrate their film pictures with their computers simply, conveniently and inexpensively," said Mike Foss, general manager, Consumer Digitization Operations, and vice president, Consumer Imaging, Eastman Kodak Company. "People can use film cameras, and their picture-taking and developing habits remain the same. However, Picture CD lets people do much more with their pictures on their PCs. And since Picture CD is compatible with Kodak Picture Maker kiosks, people who don't own a PC will be able to use the CD to perform many of the same functions possible on a PC."

Typically, each Picture CD holds the pictures (high-quality scans of a consumer's negatives) from one roll of standard 35 mm or Advanced Photo System (APS) film. Ordering is simple: When dropping off a roll of film for development, the consumer checks the Picture CD box on the retailer's film-processing envelope.

"Picture CD enhances the emotional impact of the more than 20 billion pictures taken every year in the U.S.," said Lorie Wigle, director of marketing, Digital Imaging and Video Division, Intel Corporation. "It delivers the benefits of digital imaging, without forcing people to change their picture-taking habits. Picture CD also acts as an easy on-ramp for consumers to enjoy an even richer visual experience on their high-performance PC."

National and regional retail chains across the country, including CVS, Eckerd Drug, Kmart, Target, Walgreen's and Best Buy, along with a number of other participating retailers, are currently offering Picture CD service for an expected retail price of $8.95 - $10.95, depending on service turnaround times. Typical service times range from one hour to two days.

The national introduction of Picture CD follows a successful four-month test in Indianapolis and Salt Lake City. Research there found customers very satisfied with Picture CD, with more than 70 percent of purchasers saying that they would buy the product again.

Picture CD has also generated enthusiasm overseas following its international roll-out. Recently, Picture CD was introduced in the United Kingdom, Canada, Germany and the Nordic countries (Sweden, Norway, Denmark and Finland).

Built-in Software Applications

While the magazine-style interface developed by Adobe Systems will generally remain the same from issue to issue, certain third-party software applications included in each issue of Picture CD will change periodically, offering new content and fun activities. The four issues of Picture CD planned for 1999 will feature a range of applications from third-party software and hardware companies. Every issue includes standard features that let people edit, enhance and share their pictures, such as easily turning photos into PC "wallpaper" or emailing pictures to friends. The current issue, Volume 2.0, Issue 2.0, contains software that lets users easily create photo-quality gifts and prints using the Kodak PhotoNet Online Internet service and have those items sent to them via U.S. mail. Each new issue will be available until a subsequent one replaces it. Volume 2.0, Issue 2.0, will be available through July.

Picture CD's key features are highlighted in a table of contents, which lists basic functions for viewing and editing pictures, as well as special features that let people enhance their pictures. On-screen instructions, icons and a pop-up menu guide users through the CD's options, making it simple to organize and enhance pictures or share them through email or by using the Intel® Email Postcard.

"Picture CD bridges the film-digital gap by offering a solution that doesn't require consumers to choose between film and digital pictures, but gives people the benefits of both," said Kristy Holch, principal of InfoTrends Research Group, Inc., a market research firm based in Boston. "Kodak and Intel have combined the power of their brands and the strengths of their respective technologies to smoothly transition consumers into photography's digital age. Picture CD provides people the opportunity to explore the technology's possibilities."

System Requirements

Picture CD requires a minimum 90 MHz Intel® Pentium® processor (or comparable) based PC or greater and minimum 2x CD-ROM drive, 16 MB of RAM, 40 MB of available hard drive space and Windows 95, Windows 98 or Windows NT operating systems. Significant performance improvements will be observed with systems that exceed minimum requirements. Picture CD provides preliminary support of the Macintosh operating system; Macintosh computer users can perform basic picture viewing, exporting and printing features. Plans call for Picture CD to be fully compatible with the Macintosh operating system. Users of Windows 3.1 system can only access their JPEG picture files on Picture CD.

Additional information about Picture CD is available on the Internet at www.kodak.com/go/picturecd. Additional information about Intel and imaging is available at www.intel.com/imaging. Additional information about Adobe is available at www.adobe.com.

Intel, the world's largest chip maker, is also a leading manufacturer of computer, networking and communications products. Additional information about Intel is available at www.intel.com/pressroom.

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