PHOTO CD PRODUCTS AND FEATURES 
Sharing Special Moments, and More: The Kodak Photo CD System

March 1993 -- In 1990, Kodak announced a new product that is beginning to
revolutionize the world of consumer photography and desktop computing.

Delivered on schedule in August of 1992, the Kodak Photo CD system promises
to do for amateur photographers what audio CDs did for music lovers: it
allows consumers to enjoy their pictures in a new way. They take standard
35 mm photographs and have them scanned onto special compact discs by a
photofinisher. The discs allow them to view their pictures on television
using special players that also play audio CDs.

As thousands of consumers have discovered, the Photo CD system is a great
new way to share special moments. But that is only one part of its
promise. The ability to convert photographic images to a digital format
has broad- commercial applications as well:

* Consumers can use Photo CD Master discs for commercial applications. For
example, a real estate agent in Philadelphia with a hot prospect moving
from Boston can send the client a disc containing photographs of available
housing.

* Photo CD-compatible CD-ROM drives can read Photo CD discs when used with
Photo CD-enabled software, thus giving desktop publishers a new, low-cost
way to input photographs into their computers. More than 25 currently
available CD-ROM drive models are Photo CD-compatible.

* The format developed for storing 35 mm photographs at full resolution can
be extended to other types of images for other applications--including
professional photography, catalog publishing, and medicine.

* Photo CD image files simplify the creation of "image databases," giving
computer users access to images stored on-site or across national or
international networks.

* The technology photofinishers use to scan photographs onto Photo CD discs
has changed the economics of CD publishing--making it cost effective for
many other businesses to write, distribute, and retrieve data on CDs.

Because Kodak developed Photo CD technology for both consumer and
commercial applications, both types of users receive two key benefits.
Affordability is one: mass production of Photo CD media leads to lower
prices for all users. Cross-platform accessibility is another: using an
inexpensive CDROM drive in combination with Photo CD-enabled software,
computers read the Photo CD discs; and users can view the same discs used
in computing applications on TV with an inexpensive home player.

In essence, the Kodak Photo CD system gives both consumers and commercial
customers the best of two technologies. It provides the convenience, low
cost, and image quality of traditional photography. Then it adds the
benefits of digital technology--the ability to display, enhance, and
transmit images electronically.

Award-Winning Technology

One of the keys to the Photo CD system's success is the way it makes
complex technology seem simple. Kodak developed a number of significant
advances in film scanning, image compression, software, media formulation
and CD recording to make the system work. But for consumers, it's as
simple to use as watching TV.

Kodak has achieved worldwide recognition for its technology innovations.

* In 1990, the system received a "Best of What's New" award from Popular
Science magazine.

* In 1991, a panel of editors of photographic journals from 13 countries
named the Photo CD system "European Innovation of the Year 19911992."
Kodak also received the "Best Design Technology" award from the Technical
Image Press Association and a "Top 10 Products" award at PhotoExpo '91.

* In 1992, the system's developers received the Eduard-Rhein Foundation's
annual Technology Award, one of Europe's most celebrated technology
prizes. The International Press Association (IPA) also chose the system
for its President's Award.

Industry Support

Besides these numerous accolades, many major participants in the
photography and computer industries have embraced the Photo CD system.
Both Fuji Photo Film Company and Konica, for example, have licensed the
technology for consumer photography applications. Computer giants such as
Apple have announced that they will build Photo CD compatibility into
their hardware and software products. Leading CD-ROM drive manufacturers--
including Philips, Pioneer, Sony, and Toshiba--are already offering Photo
CD-compatible drives.

PHOTO CD PRODUCT DESCRIPTIONS

What follows is a Photo CD compendium--a list with some discussion of the
various technologies comprising the complete Kodak Photo CD system,
including media, software, players, and authoring systems. It also
describes the Kodak writable CD system, a direct outgrowth of Photo CD
technology.

Disc Formats

Kodak has applied the core technology of its Kodak Photo CD system to a
variety of disc formats for specialized applications. Any disc carrying
the Photo CD logo, including a mass-replicated disc made by a licensed
manufacturer, can be played on a Photo CD player, a Philips CD-I player,
or, with appropriate software, a compatible CD-ROM drive.

* Kodak Photo CD Master Designed for 35 mm consumer photography, the
original Kodak Photo CD Master disc can hold about 100 high-resolution
images, or four 24-exposure rolls of film. The discs offer image
resolution as high as 2048 x 3072 pixels--16 times as great as today's TV
standards, and four times the standards currently being considered for
HDTV. The Kodak Photo CD Master disc can also function as a "digital
negative," which means consumers can take the disc to a photofinisher to
have prints made.

* Kodak Pro Photo CD Master Professional photographers use the Kodak Pro
Photo CD Master disc. These discs store images from the larger film
formats favored by professionals, including 120, 70 mm, and 4 x 5-inch, as
well as 35 mm. Depending on the film format, the discs can hold from 25 to
100 images.

* Kodak Photo CD Portfolio Designed to become a major publishing medium,
the Kodak Photo CD Portfolio disc lets people create discs that contain
combinations of photographic images, stereo audio, graphics, text, and
programmed access. Applications include publishing of consumer "picture
stories" (such as wedding discs or family trees), business presentations,
or commercial titles. Image professionals also will use the format to make
custom Photo CD discs with copied or edited Photo CD images. Because the
highest resolutions are not required on this format, users have more space
available for other content, such as audio and graphics.

* Kodak Photo CD Catalog The Kodak Photo CD Catalog format is designed for
organizations that want to store large numbers of images on a disc and
distribute these images widely--such as mail-order retailers, tourism
associations, or art galleries. As many as 6,000 images can be stored at
video resolution on Kodak Photo CD Catalog discs for soft display on TV
sets or computer monitors. (The images are of lower resolution than
standard Kodak Photo CD Master discs or Kodak Pro Photo CD Master discs
and can't be used to make photo-quality prints.)

KODAK PHOTO CD DISC FORMATS:

Kodak Photo CD Master
---------------------
Content: 35mm film
Identifier: Photographic quality
Playback: Photo CD player, CD-I player, 
          Photo CD-compatible CD-ROM drive with Photo CD software
Authoring System: PIW 2200 or 2400
Max# of Images: 100
Optional Features: none

Kodak Pro Photo CD Master
-------------------------
Content: 35mm, 120, 70mm, 4x5"
Identifier: Professional Photographic quality
Playback: Photo CD player, CD-I player, 
          Photo CD-compatible CD-ROM drive with Photo CD software
Authoring System: PIW 2200, 2400 or 4200
Max# of Images: 100 - 25 - 6 dep. on res.
Optional Features: none

Kodak Photo CD Portfolio
------------------------
Content: PCD or electronic image files
Playback: Photo CD player, CD-I player, 
          Photo CD-compatible CD-ROM drive with Photo CD software
Authoring System: Portfolio authoring software
Max# of Images: 800
Optional Features: audio, programmed access (branching),
                   text & graphics (w/TV resolution or higher),
                   Pixel edited image

Kodak Photo CD Catalog
----------------------
Content: PCD or electronic image files
Playback: Photo CD player, CD-I player, 
          Photo CD-compatible CD-ROM drive with Photo CD software
Authoring System: Catalog authorizing software
Max# of Images: 400 - 2000 - 4000 - 16000 (depending on res.)
Optional Features: audio, programmed access (branching),
                   text & graphics, pixel edited image

Players

Consumers display their pictures by inserting their discs into a Photo CD
player that they operate with a simple remote control. The viewer can
select specific images, program them to appear in a particular order,
rotate an image, or zoom in on part of it for a close-up.

Kodak offers three Photo CD player models, each of which has high-end audio
capability, besides a unique set of picture-viewing features:

* The PCD 270 is a low-priced player with basic picture-viewing and audio
CD features. It allows the viewer to delete some pictures from the
playback sequence and to keep others. It also can remember the changes,
which eliminates the need to program a disc each time it is viewed. An
"autoplay" feature allows the player to automatically sequence through
selected images at intervals of two seconds. (Suggested retail price:
$379.)

* The deluxe PCD 870 player offers a variety of more advanced viewing
options. Users can view close-ups of their images, selecting a rectangular
portion for magnification with the "2X tele" feature. Another feature,
"expanded favorite picture selection," provides additional memory for
recalling the individual picture edits and viewing order selections of
more discs. (Suggested retail price: $449.)

* A third model, the PCD 5870, offers all the advanced features of the
deluxe version with the addition of a five-disc carousel. This player also
provides on-screen display of the selected image number and other
information for easy indexing and fast photo identification. (Suggested
retail price: $549.)

Between March 15,1993, and September 30,1993, Kodak is offering a free
coupon book worth up to $50 in Photo CD transfers to consumers who buy a
Kodak Photo CD player from participating retailers.

A Kodak Photo CD player feature chart follows...
-----------------------------------------------------------------
               KODAK PHOEO CD PLAYERS
                 Feature Comparison

Key Features                   PCD 270   PCD 870   PCD 5870
------------                   -------   -------   --------
AUDIO & PHOTO
Direct Access                     *         *          *
Repeat                            *         *          *
Keep/Skip                         *         *          *
Multi-Disc Capability                                  *

PHOTO ONLY
Autoplay                          *         *          *
RF, Composite Video, S-Video      *         *          *
Rotate                            *         *          *
Panning                           *         *          *
FPS (Favorite Picture Selection)  *         *          *
Expanded FPS                                *          *
Picture Scan                                *          *
Full View                                   *          *
2X Tele (Crop & Enlarge)                    *          *
Insert                                      *          *
Frame On/Off                                *          *
On-Scren Display                                       *

AUDIO ONLY
Scan                               *        *          *
Shuffle                            *        *          *
1-Bit Technology (D/A Conversion)  *        *          *
Reverse Play                       *        *          *
FTS (Favorite Track Selection)              *          *
Time Edit                                   *          *
A to B                                      *          *
-----------------------------------------------------------------
Photo CD Authoring Systems and Software

Before Kodak could offer Photo CD technology to consumers, it had to
develop an authoring system that would allow photofinishers quickly and
cost effectively to produce Photo CD discs. The Kodak Photo CD Imaging
Workstation (PIW) 2200, the original system used by photofinishers,
included a Kodak scanner, data manager (workstation), disc writer, thermal
printer, and software. Today, Kodak offers two additional PIW models.

* Kodak PIW 2400 processes consumer Photo CD orders. It includes the Kodak
scanner, data manager, printer, two PCD writers, and upgraded software
which gives it over three times the productivity of the PIW 2200. An Auto
Gate accessory allows complete rolls of film to be scanned automatically,
instead of manually advancing each frame.

* Kodak Pro PIW 4200 processes orders from professional photographers or
consumers. It scans large-format professional films, with features that
answer professional photographers' unique needs, such as the ability to
emulate the "look" professionals achieve by choosing different films. The
PIW 4200 includes the Kodak Professional PCD film scanner 4045, for
professional-quality image scanning.

Kodak will provide Photo CD Portfolio authoring software for
photofinishers, service bureaus, or individuals who want to produce Photo
CD Portfolio discs. Users can do the following:

* Copy Photo CD Master and Pro Photo CD Master discs to Kodak Photo CD
Portfolio discs for low- to medium-volume distribution

* Merge images from an assortment of Photo CD Master and Pro Photo CD
Master discs to new Photo CD Portfolio discs

* Produce interactive multimedia-style discs directly on the desktop in the
Photo CD Portfolio format, combining photos, audio, graphics, text, and
programmed access

* Edit images from Photo CD Master or Pro Photo CD Master discs using
off-the-shelf image editing software and write the edited files to Photo
CD Portfolio discs for storage or distribution

* Combine photographic-quality images from Photo CD Master and Pro Photo CD
Master discs with other digital images to create Photo CD Portfolio discs
for presentations, storage, or distribution

Software for Working with Photo CD Images

To accommodate a wide range of desktop applications, Kodak developed a
family of five software products designed for all types of users. Kodak
Browser Photo CD catalog software and the Kodak Shoebox Photo CD image
manager provide easy search and retrieval of images stored in databases;
the remaining three allow users to work with individual Photo CD images in
different ways (see chart below). All five software packages are designed
to have the same intuitive feel with easily identifiable icons and
convenient pull-down menus. The software products also provide an easy
transition between simple and more advanced functions. The chart below
describes each software and its features:
-----------------------------------------------------------------
           FAMILY OF KODAK PHOTO CD SOFTWARE

Kodak Photo CD Access
---------------------
User: casual user of Photo CD images
Description: A low-cost tool that's designed to import Photo CD images to
current applications; users can read and display Photo CD images and can
crop, zoom, and rotate images.
Platform Supported: Windows, Macintosh, DOS
Price: $39.95

Kodak Photo CD Acquire Module for Adobe Photoshop
-------------------------------------------------
User: users of Photo CD images in Adobe Photoshop software wanting to
control color for printing or reproduction.
Description: A low-cost plug-in for Adobe Photoshop software that increases
control over color when opening Photo CD images.
Platform Supported: Macintosh with Adobe Photoshop software
Price: $59.95

Kodak PhotoEdge
---------------
User: Business presenters
Description: An image enhancement and correction software that lets users
do more advanced image correction and improvement.
Platform Supported: Windows, Macintosh
Price: $139.00

Kodak Browser
-------------
User: Casual users of Photo CD images
Description: A basic image (on the Catalog disc) database package that
allows easy key word search and retrieval.
Platform Supported: Software provides easy image retrieval on TV using a
Photo CD or CD-I player or on any computer platform with a Photo
CD-compatible drive.
Price: Included on Catalog disc

Kodak Shoebox
-------------
User: Users who need to search through large numbers of stored images.
Description: Helps automate the storage and retrieval of images for anyone
maintaining a Photo CD image archive; users store lower-resolution
thumbnail images in a database residing on their computer hard drive or
similar media; images can be searched very rapidly using key words.
Platform Supported: Windows, Macintosh
Price: $399.00

Kodak Renaissance
-----------------
User: Grahic designers
Description: An intuitive page layout package that has been upgraded to
allow direct input of Photo CD images.
Platform Supported: Macintosh
Price: $695.00
-----------------------------------------------------------------
Kodak Professional Image Library and Kodak Picture Exchange

Besides these software packages, Kodak will provide an automated disc
library, or "jukebox," that holds as many as 100 Photo CD discs. The
library can store thousands or hundreds of thousands of images, depending
on the type of Photo CD discs it contains.

Along with the library, which will give individual customers easy access to
images internally, Kodak has also announced its intent to create an
on-line imaging network that will use telephone lines to link distributors
of images worldwide. This service will be called the Kodak Picture
Exchange

The Kodak Picture Exchange is a Kodak business that will give users access
to a huge database of images, just as networks such as CompuServe provide
access to text and data. With a desktop computer and a modem, users will
be able to search the Kodak Picture Exchange database and request hard
copies of images electronically. Kodak Picture Exchange will alert the
image providers immediately, allowing them to fulfill requests promptly by
air express. In the future, as the data-carrying capacity of telephone
lines expands, requests may be fulfilled instantly by modem.

Kodak Writable CD System

The research that made it possible to produce photographic compact discs
economically for consumers has made low-volume commercial production of
data CDs viable as well.

The Kodak writable CD system is a complete compact disc publishing system
that allows users to master CD-ROM discs from their desktop computers. All
standard hardware devices, including CD-ROM, CD-ROM XA, CD-I, and CD audio
players can read properly authored, writable CDs. With a suggested retail
price of $25 for each disc, the new media provide a cost-effective
alternative to other types of removable computer storage. Each writable CD
stores 550-650 MB of data, text, images and/or digital audio, depending on
the format, at a cost of only 4 cents per megabyte . That's the equivalent
of 240,000 pages of ASCII text, 550 floppy discs, or three reels of
nine-track tape all on a single, individually published disc, and all
digitally accessible.

The system consists of three parts:

* The Kodak PCD writer 200 writes and reads data to and from discs at twice
the speed of conventional CD writers.

* Kodak writable CD media with the InfoGuard protection system is a
write-once medium that can be read in standard CD hardware devices. The
InfoGuard protection system offers a carefully selected dye chemistry that
resists fading from light, heat, and humidity; a protective coating that
prevents scratches, dirt, rough handling, or other common mishaps from
damaging the disc's readability; and a unique identification number--
printed in human readable form along with a corresponding machine-readable
bar code--that provides tracking, indexing, and security advantages.

* Kodak CD publishing software allows users to publish data to writable CDs
with a point-and-click of the mouse, as easily as they might copy files to
a floppy disc today. Kodak software is now available to users in MS-DOS
and Windows environments; Macintosh computer and Sun/UNIX versions will be
available soon. The Kodak disc writers and media both support multisession
recording. This means users can add data to a disc in different recording
sessions. Kodak said it plans to offer multisession authoring software
later this year.

Kodak writable CD products are designed to offer customers the most
productive and convenient system available for low-volume CD publishing,
with the added benefit of one-stop shopping from a single vendor. The
system is completely open, however--Kodak media are compatible with disc
writers from other manufacturers, and the Kodak PCD writer 200 works with
other media.

Eastman Kodak Company, 343 State St, Rochester, NY 14650

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