Health Imaging RSNA Investors Meeting December 3, 2002

1. Health ImagingRSNA Investors MeetingDecember 3, 2002

2. Agenda • Welcome and introductions • Sneak preview of new products • Booth tour • Formal remarks • Questions and answers

3. Sneak Preview – New Products

4. HI’s New Products • Film capture & output • Next-generation X-Sight Screens • Digital output • DryView 8900 Laser Imager • Digital capture • DirectView CR 850 System • DirectView CR Long-Length Imaging System • Kodak DirectView DR 5100/7100 Operator Console • Healthcare information services • DirectView PACS Web Distribution System • DirectView PACS System 5

5. New X-Sight screen system Produces ~20% sharper images vs. previous system Mammography Introducing accessories and showcasing services Also showcasing our DryView 8610 laser imager for digital mammography Film Capture & Output

6. New flag-ship member of DryView family Sets higher standards for image quality and productivity Double the image resolution of most existing dry laser systems Much greater speed: 180 films per hour at 650 dpi resolution Three-drawer system accommodates all film sizes Excellent for centralized printing in busy multi-modality areas Also ideal in tandem with modalities that generate mixed film sizes, such as CR Small footprint – place almost anywhere Available in second-half 2003 Fifth-generation product in line that pioneered dry laser technology More than 20,000 units shipped to date DryView 8900 Laser Imager

7. Top-of-the-line, single-cassette, system Key differentiator is speed: up to 100 cassettes per hour Improved productivity and faster patient throughput Compact “all-in-one design” with 25 x 29 inch footprint Can go anywhere: ER, ICU, other areas with limited space Bar code reader for patient/cassette I.D. Supports DirectView remote operations panels Allow patient/cassette I.D. plus image review and distribution from exam room Supports Kodak’s unique EVP image enhancement software for enhanced image quality Available in second-quarter 2003 DirectView CR 850

8. Enables digital capture of full leg and spine images Key differentiators: automatic “stitching” software and ability to print areas of interest in full size Software delivers images up to 17 x 51 inches Also helps significantly reduce retakes Result: enhanced productivity System features wall-mounted vertical cassette holder with a unique “key” (picture at left) Prevents improper insertion of cassettes Available immediately DirectView CR Long-Length Imaging System

9. DirectView DR 5100/7100Operator Console • Kodak DirectView DR 5100/7100 Operator Console • Maximizes productivity and image quality through new touch-screen user interface • Standard on DirectView DR 5100 and 7100 systems, available as upgrade on DR 9000 • The 5100 and 7100 come with DirectView PTS software, which helps enhance image quality and, in turn, diagnostic confidence

10. DirectView PACSWeb Distribution System • Feature-rich system enables referring physicians to obtain patient images and reports via the Internet • Serves as foundation for transition to new DirectView PACS System 5 • Replaces our previous web product • Key advantages of new system: • Multi-platform, multi-browser support, with no customer installation necessary • Supports comprehensive image viewing and manipulation tools • Compression options minimize low-bandwidth wait times without impeding image quality • Enables online conferencing between radiologists and referring physicians • Links to HIS/RIS • Scalable from small standalone system to large, distributed enterprise-wide systems • Available in first-quarter 2003

11. DirectView PACS System 5 • Advanced next-generation PACS from Kodak • Scalable: can support small or large, single or multi-site hospitals • Powerful web component (next slide) • Streamlined workflow adapts to a range of customer configurations • Central database enables customers to optimize workflow and performance • Allows customers to participate in a single, global workgroup • Supports distributed storage elements, resulting in rapid image access • Seamless integration with HIS/RIS • Images and reports can be e-mailed or written to self-playing CDs for distribution to referring physicians and patients • Available in second-half 2003

12. New At RSNA 2002

13. Overview • Operational focus • Third-quarter results • Factors driving results • HI growth plans • Strategy • Globalization • Questions and answers

14. Operational Focus&Third-Quarter Results

15. Operational Focus • Sustaining successful margin recovery • Execution: day-to-day attention to detail • Continuing to make improvements in business operating model • Innovation and growth

16. Business Improvement

17. Third-Quarter 2002 Results • Revenues increased 4% • U.S. up 2% • Outside U.S. up 5% • Gross Profit was 43.5% vs. 34.6% year ago • Driven primarily by productivity improvements • SG&A was 18.5% of sales vs. 20% year ago • R&D totaled 5.6% of sales vs. 6% year ago

18. Business Improvements Driven By: • Increased manufacturing productivity • Implementation of lean manufacturing (Kodak Operating System) • Reduced material costs • Formulation improvements • Lower distribution costs • Driven by enhanced capacity utilization • Strengthened management team • Improved business governance and processes

19. Business Improvements Driven By: • Improved equipment quality and reliability • Leads to enhanced service costs • Changes in sales force compensation • More balanced approach, including margin • Improved cost control initiatives • Better discipline on film and equipment pricing • Solid cash performance

20. Improvement Sustainability • Operating margins will move from >20% to mid-to-upper teens level as HI invests for growth • Growth investments include: • Increased R&D to expand products/services portfolio • Targeted acquisitions/strategic partnerships • Expansion of global market presence

21. In Summary. . . Goal is to continue to: • Sustain progress in operational excellence • Invest intelligently to drive future growth

22. Going For Growth

23. Going For Growth • The growth imperative • Renewed Health Imaging growth strategy • “How” we’ll grow • Globalization • “Where” we’ll grow

24. The Growth Imperative • Health Imaging is among Kodak’s most profitable businesses • The business is robust • Healthcare technology and services markets are growing • Our competencies and assets create opportunities: • Product extensions • New technologies and services in current markets • Adjacencies This is an Ideal Time to Grow Our Business

25. Growth Strategy Renewal • CP3+PACS • Right strategy at the time • Delivered 10.4% CAGR over 4 years • Sustainability coming under increasing pressure • Renewed Strategy • More expansive view of market and Kodak’s participation

26. Demographic Market Dynamics 1999 2050 Diagnostic Imaging Market Growth (02-05 CAGR) Imaging Procedure Trends (02-05 CAGR) Size 27.0% 15.0% $20.9B 6.0% 3.0% -5.0% -10.0% Analog Total Digital Growing… But Shifting to Digital Technology & Emerging Markets

27. Healthcare Trends • Technological • Digital substitution in image acquisition & presentation • General parity in analog & digital capture / output devices • Internet connectivity of all devices • AgX manufacturing overcapacity • Improving digital display, storage & communication bandwidth • Socioeconomic • Increasing population age burden • Increasing healthcare spending / GNP • Healthcare consumer activism • Growth in populous developing countries • Scrutiny over privacy, security & authenticity of medical records • Pressure on healthcare costs • Pressure to reduce medical errors • Healthcare • Genomics/proteomics advance in clinical medicine • Lab becomes center of risk assessment, diagnosis, therapy & monitoring • Medical & scientific data overwhelm human analytical ability • Cardiovascular disease, cancer, depression & bio-terrorism key research targets • Shortage of skilled healthcare labor

28. Market Kodak Growth SPG Trend Plans Current Portfolio • Film Capture & Output • Radiography - Product mix/tiering • - Specific film products for emerging markets • Mammography - Continue to invest in mammography film • - Expand into emerging markets • Digital Capture • Computed Radiography - Launch DirectView CR 850 • - Working on improved cassette & region-specific software • Digital Radiography - Launch DR 5100/7100 • Digital Output • Laser Printers - Launch DryView 8900 • - Enhance manufacturing productivity • Media - Film tiering and new products • - Wet-to-dry conversion • Health Care Information Services • PACS - Launch PACS web product & System 5.0 • RIS - Expand into international markets • - Launch RIS integration services Well Balanced Portfolio…

29. Current Portfolio Rev $M Market CAGR 80% 60% 40% 20% 0% -20% Digital Output Dental Systems Digital Capture (CR) Digital Capture (DR) Film Capture & Output Scientific Imaging Systems Healthcare Information Services …Long Term, Growth Coming from New Segments

30. IP Addresses Services Output HI Growth Strategy Intelligence Archive Integrate Capture Images Other Data

31. Core Adjacencies Healthcare Management Diagnostic In-Vitro Diagnostic In-Vivo Diagnostic Radiology Treatment Applicability Intelligence Image & Information Network Integrate IP Addresses Services Output Capture & Process

32. Our Competitive Advantage • Kodak Brand • Intellectual property portfolio • Integration & interoperability expertise • Clinical workflow expertise • Distribution breadth & depth • Global presence • Image science… second to none

33. Globalization • Why? • Be a local player in rapidly growing markets • Optimize cost structure • Move decision making closer to the customer • How? • Technology centers-of-excellence near intellectual capital • Manufacturing centers-of-excellence near low-cost, high-quality supply base • Decentralized global product management • In region/for region decision rights Diversity of Leadership will Reflect Diversity of Our Markets

34. Strategic Governing Principles • Nurture the media businesses • Maximize cash flow • Sustain customer franchise for image expertise • Leverage Kodak assets • Brand • Customer franchise • Distribution channels • Technology and intellectual property • Leverage Kodak core competencies • Image science • Connectivity • Manufacturing processes • Financial focus • Growth-oriented Strategic Product Groups improve earnings every year • Non-organic investments accretive in reasonable time

35. Key Take-Aways • Health Imaging is a great business • We have a strong position in the industry • Sales growth of 3% to 5% • Sustainable earnings growth • Leadership in strong businesses • 2002/2003 are transitional years • In 2002… Restructuring Renewed participation strategy Realigned R&D investments • In 2003… Launch new products Enter new growth areas Accelerate globalization

36. Key Take-Aways • Significant opportunities to extend our business • Digital capture • Advanced imaging applications • Adjacencies in non-radiographic imaging • Solutions and services

37. A BETTER VIEW OF LIFE.