*NEWS*KODAK’S NEW $100M. CHINA PLANT

Kodak will register a company in Xiamen- Kodak
Graphic Communications (China) Co Ltd – for operations related to
design, development, processing, manufacture, integration, sale,
maintenance and servicing of computer-based digital graphic
communications products, equipment, systems and materials.

The construction of the new facility will begin
immediately after project approvals are secured, with some operations
starting in the middle of next year.

“The Xiamen campus will become a centre for digital
media and related products as Kodak continues the rapid transformation
to a digital company,” said Daniel T. Meek, senior vice-president of
Kodak.

Other digital media currently produced at the campus
include Kodak “dry view” films used for medical imaging and films used
for the manufacture of printed circuit boards, Meek said.

He added that the company recently moved to create a
finishing operation for ink jet paper at the site and will continue to
evaluate manufacturing expansion for future digital products.

“Kodak is transforming itself, and so is our Xiamen
plant,” said Ying Yeh, chairwoman of Kodak’s Greater China Region.

She said: “I am delighted to see our Xiamen campus
engaged in manufacturing for all three pillars of Kodak’s business:
consumer, health and graphic communications.

“This site, which once produced only traditional
products, will also produce digital media and related products with the
capability to supply markets worldwide. This is a good development
opportunity for the Xiamen campus in Kodak’s transformation.”

    Prior to completion of the new plant in Xiamen,
Kodak will continue to supply customers from its Kodak Polychrome
Graphics (KPG) plant in Tianjin, which was acquired earlier this year.

    The new project will not interrupt product supply or
delay KPG’s timetable to locally supply the China digital plate market.