Kodak Launches Revolutionary Digital Photo Processing in the Midwest; Nearly 75% of Consumers Note a Dramatic Difference in Their Pictures During Test

Business Wire, Oct 7, 2002

Business Editors

ROCHESTER, N.Y.--(BUSINESS WIRE)--Oct. 7, 2002

Eastman Kodak Company today launched Kodak Perfect Touch processing, its new premium photo processing service, now available at major retailers throughout the Midwest region of the U.S.

One of the most important innovations for photo processing since color, Kodak Perfect Touch processing individually scans and digitally "corrects" each photo - giving consumers the opportunity to see the difference that processing makes. Kodak Perfect Touch processing uses digital technology to improve poorly exposed or backlit pictures giving consumers pictures with more vibrant colors, richer detail and fewer dark shadows. The service will roll out across the rest of the U.S. in 2003.

In test markets, almost 75% of consumers said they saw a dramatic difference in pictures processed with Kodak Perfect Touch. Eleven retailers throughout the Midwest offer Kodak Perfect Touch processing as of today, including Albertson's, CVS/pharmacy, Costco, Dominick's, HyVee, Kmart, Kroger, Meijer, Rite Aid, and Target and Walgreens.

"Kodak Perfect Touch processing gives people better pictures," said Daniel A. Carp, Kodak's chairman and chief executive officer. "If we can give consumers more great pictures, they're going to take more pictures. Kodak Perfect Touch will deliver those great pictures and drive consumers to generate more prints - a clear indication that processing matters."

"As people take more pictures, they will need more processing, which benefits our retail customers as well," Carp said. "Kodak is committed to expanding the benefits of film and driving output for consumer and retailer alike."

According to research released today by Kodak, only nine percent of picture-takers in the Midwest attributed issues with their pictures to processing. In fact, more than half of respondents blamed the problem on themselves.

"Many consumers don't realize that processing has a big impact on the quality of their pictures, and we're on a mission to educate them that their choice matters, " said Jude Rake, Chief Operating Officer, United States & Canada, Consumer Imaging, Kodak. "By getting their pictures processed with Kodak Perfect Touch processing, they can see the difference for themselves."

Consumers "See the Difference"

Kodak tested Kodak Perfect Touch processing in four markets in 2002 including Indianapolis and Evansville, Ind.; Nashville, Tenn., and Cincinnati, Ohio, which increased overnight premium-processing volumes by about 24 percent in those markets.

The Kodak Perfect Touch processing test research also revealed the following:

- 74 percent of consumers noted a dramatic difference in their pictures with Kodak Perfect Touch processing;

- Eight of 10 consumers would select Kodak Perfect Touch processing;

- A majority of consumers would switch retailers to purchase Kodak Perfect Touch processing;

- Consumers said they are willing to pay more for Kodak Perfect Touch processing.

Kodak is testing the same concept in Austria in advance of a similar launch next year. Consumers there have demonstrated remarkably similar preferences to the U.S. test late last year.

Kodak will support the retail effort with a fully integrated marketing campaign that includes advertising, public relations and in-store promotions.

Midwest consumers will be asked to "See the Difference" through a multi-million dollar advertising campaign and such sponsorship efforts as the re-vamping of Kodak's NASCAR design from Max film to Kodak Perfect Touch processing.

By fall 2003, more than 40,000 retailers across the United States will offer Kodak Perfect Touch processing. Retail prices will range between $7.99 to $9.99 for single prints, and $9.99 to $11.99 for double prints.

Eastman Kodak Company and Infoimaging

Kodak is the leader in helping people take, share, enhance, preserve, print and enjoy pictures -- for memories, for information, for entertainment. The company is a major participant in "infoimaging" -- a $385 billion industry composed of devices (digital cameras and PDAs), infrastructure (online networks and delivery systems for images) and services & media (software, film and paper enabling people to access, analyze and print images). Kodak harnesses its technology, market reach and a host of industry partnerships to provide innovative products and services for customers who need the information-rich content that images contain, such as Kodak Perfect Touch processing. The company, with sales last year of $13.2 billion, is organized into four major businesses: Photography, providing consumers, professionals and cinematographers with digital and traditional products and services; Commercial Imaging, offering image capture, output and storage products and services to businesses and government; Components, delivering flat-panel displays, optics and sensors to original equipment manufacturers; and Health, supplying the healthcare industry with traditional and digital image capture and output products and services.