Product: KODAK Adaptive Picture Exchange Announcement Date: January 31, 2008 Launch/Initial Shipments: Early Q2, 2008 Value proposition: APEX, a scalable, configurable system, meets the evolving needs of retailers through flexibility and efficiency in providing digital products and services to consumers. The total system provides unprecedented ease-of-use, flexibility and scalability to produce profitable, high quality photo products, while minimizing retailer labor costs and complexity. New Components: • Next generation thermal printing system, including: o New KODAK 7000 Photo Printer designed specifically for high capacity, high reliability and sustained high speed o New KODAK XtraLife II Media, with laminate modulation technology, enabling satin and gloss finish capability from a single media SKU • New KODAK DL2100 Duplex Printer for two-sided calendars, photo books and greeting cards • New APEX workstation with advanced high speed processor and enhanced workflow management software enables simultaneous production of multiple products and orders • New ergonomic workspace and modular cabinet designs increase staff productivity Modular Components: • KODAK 7000 Photo Printer • KODAK 8800 Photo Printer • KODAK XtraLife II Media • APEX workstation with high speed processor, APEX software and internal DVD/CD Drive • Label printer for easy job management • Available printer module with built-in order sorting capabilities • Optional KODAK DL2100 Duplex Printer • Optional KODAK Picture Kiosk Rapid Print Scanner • Optional Epson 7880 Poster Printer • Optional KODAK F135 Plus Film Scanner • Optional KODAK Accessory CD/DVD Writer/Dispenser • Included KODAK Remote Business Management Service • Three different cabinet modules for installation flexibility Target Audience: • Retailers that seek better ways to improve their profitability by offering their customers high value, premium photo content via proven technologies and solutions, while also leveraging current investments. Key features: • Innovative Print Features: APEX system contains new KODAK 7000 thermal printers that have a capacity of 1000 4x6 prints per printer unit, highest in its class. These printers, combined with the new XtraLife II media, expand the capability of thermal printing technology with new innovative print features: o Dual Finish: with one button, retailers can offer a selection of glossy and satin print surfaces from the same consumable sku o Clear Caption: a unique retailer configurable capability to print an order ID# for order tracking by a retail clerk or to print consumer image metadata such as image date inconspicuously right on the front of the print o Patented Ribbon Optimization technology: retailers can cost effectively make 4x6, 6x8 and bordered 5x7 prints a single media sku using Kodak’s patented ribbon optimization technology o Additionally, the KODAK 8800 printer has been enhanced to support 4x8 cut greeting cards as well as up to 8x12 enlargements. • Minimized Labor Support: APEX uses fewer media sku’s, dry operation, new user interface with efficient software workflow and overall low system maintenance. Clerks can shift more time to selling and supporting consumers rather than maintaining the lab equipment. • Modularity: APEX offers unprecedented modularity, supporting a wide variety of space, layout and volume requirements with options that range from 450 pph – 2,250 pph and with space requirements as small as 6 sq ft. • Adaptive Architecture: retailers can easily add printers, including the new KODAK DL 2100 Duplex Printer and EPSON 7880 poster printers, as well as other peripherals to the system as the business grows • Produce Premium Photo Items In-Store: the base APEX systems enables retailers to offer high value photo products in-store, including KODAK Picture Movie DVD’s (the only retail solution that combines original artist music and is available in under an hour), single page calendars, one sided greeting cards and single sided photo books. The new DL2100 Duplex Printer from Kodak and optional Epson 7880 Poster Printer extends those capabilities to include Poster printing, two sided photo books, ring-bound multi page calendars and folded 2-sided greeting cards. • Retailer Flexibility: Retailer retains the ability to configure the system to maximize their profitability. Print services offer six different print times, ranging from prints-in-seconds to prints-in-days. Each can be set with a price point appropriate to the service level so optimal bottom line profitability can be achieved. Retailers can create a summary sheet that contains retailer specific information to promote brand building, promotions or new products and services. Retailers can send work intensive orders from kiosk workstations to the APEX system, to free up systems for more customers. • KODAK Remote Business Management Service (RBM): A retailer can remotely manage software, download content and provide comprehensive diagnostics • Connectivity: Kodak will offer a suite of professional services that enable connectivity to or from the APEX system for fulfilling online orders in-store or for routing products to 3rd party fulfillers. • Reduced Retailer Costs means Higher Retailer Profits: The system substantially increases retailer profit potential through reduced labor costs, elimination of effluent disposal fees & water costs and it’s capability to leverage existing retailer hardware investments.