IBM and Kodak Announce Broad-based Agreement to Offer Imaging Solutions

Customers from retailing to health care will benefit; partnerships include
Internet-based network imaging

SAN FRANCISCO, March 28, 1995-IBM and Kodak today announced a wide-ranging
series of agreements that will see the two companies deliver exciting new
imaging solutions to customers in data storage, retailing, health care and
other fields - including an Internet-based network image exchange.

The agreement will bring together imaging and color science expertise from
Kodak with systems integration, data management, networking, storage and
marketing from IBM.

"IBM and Kodak today open an exciting new chapter in our cooperative
relationship," said John M. Thompson, senior vice president and software
group executive at IBM. "Our announcements are extensive and expansive,
but they have one thing in common; they leverage the very latest
technologies from both companies, and they focus those technologies
squarely on the needs of our customers."

The two companies made their announcement at a special Kodak event held
here at Yerba Buena Gardens. That event followed by one day the New York
unveiling of the IBM Digital Library, which includes a number of advanced
multimedia imaging technologies such as Kodak's. The IBM Digital Library
allows images to be digitized over networks, putting some of the world's
great repositories of multimedia information at the fingertips of anyone
who has a personal computer.

"Kodak and IBM enjoy a very strong relationship," said Carl Gustin, vice
president and general manager of Kodak's Digital and Applied Imaging
organization. "The cooperative agreements announced during the past 24
hours continue that relationship and in fact raise it to new heights.

"We are extremely proud to be working so closely with IBM and look forward
to leveraging the strengths of both companies on behalf of our
customers."

At today's event, the companies announced:

 o   A broad-based partnership to commercialize the
     distribution and sale of pictures and compound
     documents over the Internet and the IBM Global Network.
     IBM will provide network and infrastructure services,
     while Kodak will offer image management based on the
     Photo CD format and FITS technology licensed by Kodak
     from Live Picture, Inc. The image-network service is
     expected to be operational by early 1996.

 o   A new Kodak technology known as "hypercompression",
     that will be used in conjunction with IBM's 4690 point
     of sale systems, bringing the promise of image to the
     retail environment. The Kodak technology enables a
     person's likeness to be represented by a 400-bit data
     packet, small enough to be stored on a credit card's
     magnetic strip. When a store clerk swipes the card
     through the IBM terminal, the card owner's face will be
     displayed instantly at the clerk's private terminal,
     helping protect the customer by ensuring that the card
     isn't being misused. Kodak and IBM will be testing and
     implementing this technology with retailers later this
     year.

 o   Kodak and IBM have agreed to a multifaceted agreement
     on optical storage technology and scanners. Kodak will
     develop advanced phase-change media for future
     write-once optical drives. The new media will be based
     on the phase-change technology used today in Kodak's
     14-inch recordable media. Kodak and IBM will jointly
     work to attain industry standards for write-once media
     based on phase-change technology. The two companies
     also have agreed to lead a development effort aimed at
     developing optical disks that can be written with an
     IBM-developed blue-light laser.  It is anticipated that
     this technology will enable production of 14-inch
     optical disks capable of storing 100 GB of data - or
     more - per platter.

 o   An agreement under which IBM will begin marketing the
     Kodak PCD writer 225, Kodak PCD writer 600 and disc
     transporter, Kodak writable CD discs and Kodak optical
     disc system 2000.  The agreement represents the
     expansion of a value-added reseller (VAR) agreement
     under which IBM markets Kodak document scanners. Under
     the expanded agreement, capture and optical storage
     products will be linked to IBM systems in MVS/ESA,
     AS/400, AIX and OS/2.

 o   The intention to collaborate on radiology image
     management solutions leveraging IBM's leadership
     technology and systems integration expertise with
     Kodak's expertise and leadership in diagnostic image
     management. The solutions that Kodak and IBM will bring
     to the health care community will provide radiologists
     and other physicians with simultaneous access to
     patient records; will enable them to integrate
     electronic medical records with images such as X-ray,
     CT scan and magnetic resonance images (MRI); and will
     make it easier and less expensive to handle and store
     diagnostic images. This relationship is an outgrowth of
     Kodak's and IBM's participation in Project Spectrum, a
     technology alliance of leading computer, imaging and
     telecommunications companies which is developing an
     integrated medical information system with
     St. Louis-based BJC Health System and Washington
     University School of Medicine.

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