Kodak and APEX Digital Bring Digital Photography Into Living Room; APEX First Company Certified to Manufacture DVD Player With the Kodak Picture CD Compatibility Mark

Business Wire, August 2, 2001

Business Editors

ROCHESTER, N.Y. & ONTARIO, Calif.--(BUSINESS WIRE)--Aug. 2, 2001

Viewing digital photos just moved from the desktop computer to the television.

APEX Digital today became the first company certified to manufacture DVD players that allow consumers to view pictures stored on Kodak Picture CDs. The new DVD player--the APEX Digital 5131--will be available in retail outlets in August with a suggested sale price of less than $200.

The agreement between Eastman Kodak and APEX is part of Kodak's continuing effort to make it easier for consumers to view and share digital photographs. The APEX DVD player will utilize a chip from ESS Technology, Inc. Kodak and ESS announced an agreement last month to develop the chips that give DVD players the capability to read Kodak Picture CDs.

"Kodak is pleased to be working with APEX and others to develop and market DVD players for consumers who are excited about digital imaging," said Dan Palumbo, president, Consumer Imaging, and senior vice-president of Kodak. "This agreement is part of our continuing work to make it easier for consumers to take advantage of and enjoy digital photography."

"With Kodak's certification, APEX will be early to market with a DVD player that can read the Kodak Picture CD," said Ancle Hsu, chief operating officer of APEX Digital. "We feel adding this function will greatly broaden the appeal and demand for our DVD players while improving the consumer experience."

Along with the capability to view images on the Kodak Picture CD, the APEX Digital 5131 DVD player also features enhanced picture viewing enabled by the ESS chip:

- Automatic picture scaling to maximize TV display size

- Image rotation

- Thumbnail/catalog display in one screen for quick browsing

- Slide-show features

- Pan and zoom

- Image special effects.

Kodak and its technology partners also are working to add Internet capabilities to the DVD players so consumers eventually will be able to e-mail digital photos and use online photo printing services through their DVD players and TVs, including Kodak's Ofoto service.

"This agreement between Kodak and APEX shows that ESS's technology provides manufacturers, such as APEX, with innovative features and new opportunities to expand and improve digital photography," said Robert Blair, president and chief executive officer of ESS Technology. "With the coming convergence of digital DVD-audio, high-performance video and Internet connectivity in DVD players, we foresee tremendous growth in the digital home entertainment market."

APEX Digital sells DVD players through retail outlets such as Circuit City, K-Mart, WalMart, Sam's Club and U.S. Military base exchanges.

Kodak and infoimaging

This initiative will help drive the growth of two key infoimaging categories: infrastructure and services/media. Infoimaging is a $225-billion industry created by the accelerated convergence of image science and information technology. Infoimaging unites three closely related imaging markets--devices, infrastructure, and services/media--enabling consumers and businesses to more easily use images as a fast and effective way to communicate. Infoimaging presents significant new revenue opportunities for any company that delivers value through the marriage of information and images.

About APEX Digital

APEX Digital, Inc., a division of United Delta, Inc., is a leading U.S. manufacturer of DVD players sold in the United States and Canada under the APEX Digital brand name. "More For Your Money" is the company's credo, as witnessed by the first MP3/DVD player for less than $100. APEX Digital's Web site address is: http://www.apexdigitalinc.com.

About ESS Technology

ESS Technology, Inc., a leader in digital video, communications and digital home systems, provides advanced semiconductor products enabling the convergence of communications, computer, consumer and Internet markets. Headquartered in Fremont, Calif., ESS has research and development, sales and technical support offices worldwide. ESS Technology's common stock is traded on the NASDAQ under the symbol ESST. ESS Technology's web site address is: http://www.esstech.com.

Editor's Note: For additional information about Kodak, visit our web site on the Internet at: www.kodak.com/