Entertainment Imaging

1. Entertainment Imaging Business Overview

2. Objectives • Describe Kodak’s Entertainment Imaging business and current initiatives • Share view of industry evolution • Discuss strategy within evolving industry

3. Overview WW Business • Market Participation • Feature Films • Television • Commercials • Media • Extensive Kodak-branded film portfolio with embedded service/support • Services • Cinesite: scanning, recording, visual effects • Pro-Tek: restoration, archiving • FPC: audio, certified destruction

4. Industry Positioning • Global film share leader • Customer satisfaction 92% • Trusted as ‘neutral player’ & quality leader • Strong industry relationships • WW brand recognition, product acceptance • Unparalleled service & support

5. Theatre Copy and Duplicate Film Scan Record Digital Manipulate Add Effects • Digital Cinema • DVD • TV • Other The Imaging Chain Analog Path Hybrid Path Digital Path

6. Film 5% Video Tape 95% Industry AnalysisMedia Share TheatricalOrigination Film 94% Electronic 6% TheatricalDistribution Film 99% Electronic1% TVOrigination CommercialOrigination Video Tape 90% Film 10%

7. Segment Color Negative Film IntermediateFilm D-CinemaDistribution Services Color Print Film Feature Film (StudioOwned) D-CinemaDisplay Systems Color Negative Film Television/Cable Color Negative Film Commercials Any Digital Content EI SPG Model Manipulate Manage Capture Distribute Display ImagingServices

8. Manipulate Manage Capture Distribute Display Segment Color Negative Film Feature Film (StudioOwned) Color Negative Film Television/Cable Color Negative Film Commercials Any Digital Content Maximize value of film – Capture SPG • Participation Strategy • Raise quality bar of film as capture medium • Invest in film infrastructure in developing markets • Balance of investments in new technologies (digital/hybrid) and continuous improvements in silver halide e.g. new VISION2 platform to extend life of film and maintain high market share • Market Dynamics • Industry in early stages of technology revolution • “Look” continues to be paramount to the creative community

9. Manipulate Manage Capture Distribute Display Segment Feature Film (StudioOwned) Television/Cable Commercials Any Digital Content Maximize value of film – Distribution SPG IntermediateFilm Color Print Film • Market Dynamics • Day & date and emerging market screen growth = moderate market growth • Competition often price focused • Participation Strategy • Differentiate with superior technical services and customer support • Focus on productivity = low cost mfg. • Maximize value to customer with ‘guaranteed source of supply’

10. Continued Investment in Film • Expectations • Market growth in color print film • Market stability in color negative film • Some image share lost to increased high-def capture in TV • Investments to: • Maintain share in developed markets • Grow business in developing markets • Extend film’s ‘creative edge’ • New origination products • Hybrid films and systems • Lowest cost manufacturer of color print film

11. Market Dynamics Currently highly fragmented, capital intensive and price competitive…but moving to standardized, lower-cost HW and sophisticated SW Digitization and customer control at front end are key enablers Participation Strategy Grow participation across the imaging chain; deepen studio value proposition Expand across attractive segments of feature film and TV markets Grow organically and through selected acquisition/investments Create sustained profitability: Workflow Scale Differentiation Creating ‘Centers of Growth’ for key Digital Imaging Services Feb 28 announced implementation plan US = long-form mastering, restoration services UK = creative visual effects services Drive the digital services transformation – DIS SPG Manipulate Manage Capture Distribute Display Segment Digital ImagingServices Feature Film (StudioOwned) Television/Cable Commercials Any Digital Content

12. Market Dynamics Emerging market with numerous non-traditional participants Tech standards & industry business model being developed by studio consortium Digital advertising dominates today’s landscape Participation Strategy Kodak to provide integrated D-Cinema system & services when market is ready: Cinema operating system Projector Operating software Storage Content prep & distribution servs. Start with digital advertising system business (same components as above but with low-cost, off-the-shelf projector) Selectively Invest in Digital Distribution – D-Cinema SPG Manipulate Manage Capture Distribute Display Segment D-CinemaDistributionServices D-CinemaDisplaySystems Feature Film (StudioOwned) Television/Cable Commercials Any Digital Content

13. Realities of the Marketplace • Technology alone does not drive change, need to balance creative & business realities • Entertainment is a complex & inter-related industry…everyone has a voice…and relationships still matter • Parts of the imaging chain – representing different market segments – are transitioning at unequal pace • Complexity favors ‘insider’ like EI to affect and lead a digital transition

14. Vision/Path Forward • Vision • Be acknowledged leader in services and film for creation, management, manipulation, presentation and preservationof high value motion imaging content • Path Forward • Generate revenue/earnings through commitment to valueof film • Directly and indirectly use hybrid and digital technologies to shape image chain to favor use of film • Attain scale and advantage in digital imaging services through partnerships, selected investments, leveraging of core film business relationships • Continue to selectively invest in D-Cinema enabling technologies and services infrastructure to position for future growth