Event Brief of Q3 2006 Eastman Kodak Company Earnings Conference Call - Final.

Original Source: FD (FAIR DISCLOSURE) WIRE

PARTICIPANTS

. Don Flick, Eastman Kodak Company, Director & VP - Investor Relations

. Antonio Perez, Eastman Kodak Company, Chairman & CEO . Frank Sklarsky, Eastman Kodak Company, Incoming CFO . Bob Brust, Eastman Kodak Company, Outgoing CFO . Jay Vleeschhouwer, Merrill Lynch, Analyst

. Matthew Troy, Citigroup, Analyst . Carol Sabbagha, Lehman Brothers, Analyst . Ulysses Yannas, Buckman, Buckman & Reid, Analyst . Shannon Cross, Cross Research, Analyst . Eli Lapp, Dillon Reed, Analyst . A. J. Kirchwall, Goldman Sachs, Analyst . Sam Doctor, JPMorgan, Analyst . Adam Comora, EnTrust Capital, Analyst

OVERVIEW

EK reported 3Q06 GAAP loss on a continuing operations basis of $37m, GAAP loss per share on a continuing operations basis of $0.13, and gross profit margin of 27.3%. Cash on balance sheet at 3Q06-end was $1.1b.

FINANCIAL DATA

A. Key Data From Call 1. 3Q06 GAAP loss on a continuing operations basis = $37m. 2. 3Q06 GAAP loss per share on a continuing operations basis = $0.13. 3. 3Q06 gross profit margin = 27.3%. 4. Cash on balance sheet at 3Q06-end = $1.1b.

PRESENTATION SUMMARY

S1. 3Q06 Operational Review (A.P.) 1. Management Addition: 1. Frank Sklarsky will assume the CFO title on Nov. 13. 2. This is Bob Brust's last quarterly conference call with investors, bringing to an end seven years of invaluable contributions to EK. 2. 3Q06 Results: 1. Pleased with quarterly results as they show the continued momentum needed to achieve goals for the year. 3. Consumer Digital Group (CDG): 1. Achieved YoverY earnings improvements of $85m in CDG, resulting from progress in implementing the digital operation model, as well as continued contributions from key portfolio which are part of full-year plan for 2006 and in years to come. 2. On operating side, EK saw YoverY earnings improvement in essentially every element of consumer products portfolio, digital capture, image sensors, home printing, and kiosks. 1. Going forward, EK will see an increasing flow of benefits from this improved operating model; media burn rates that will continue to build in kiosks and dot printers, new products such as CMOS image sensors, new generation of cell cams and inkjet as they enter EK's portfolio. 3. As part of the CDG story, EK will continue to create value through a variety of intellectual property (IP) agreements, that will: 1. Accelerate creation of new businesses. 2. Provide access to markets previously unavailable to EK. 3. Create advantageous business arrangement and important

partnerships with key industry leaders. 4. Providing returns on R&D investments. 1. IP is ongoing multifaceted element of business model and EK will continue to manage it this way. 4. Depending upon timing of the deals and accounting treatment, which is very much deal dependent, there might be a noticeable impact in any given qtr. 1. Annual plans incorporate monetization of IP in a variety of forms, and this is part of how EK runs the business.

2. Strategy is to create long-term value through IP while managing IP contributions on a full-year basis. 5. Remains confident to get through essentially full-year break even performance for CDG, as EK works to continuously improve earnings performance of key CDG businesses. 4. Health Group: 1. Maintained double-digit operating margins of 11% in Health Group, despite the burden of additional costs associated with strategic alternatives initiative and significantly higher YoverY silver prices. 2. Sees satisfying order book for both digital radiology products and healthcare information systems as new product offerings are well received by the market. 1. Believes it remains the objective to announce the conclusion of the strategic alternative study by year-end. 5. Graphic Communications Group (GCG): 1. Continued to post earning improvements in GCG, and achieved 6% digital operating margin in 3Q06, enabled by continuing integration savings and strong growth in digital plays, NexPress color products, commercial inkjet printing solutions, and document scanners. 2. Total GCG earnings increased by $24m from 3Q05, despite higher raw material costs from silver and aluminum. 6. Film and Photofinishing Systems Group (FPG): 1. FPG performed better than expected, posting 13% operating margin as EK continued to benefit from effective cost reduction actions that it has been undertaking for the last three years. 1. Objective is to take costs out faster than revenues decline, and results show that EK is getting this done.

2. Within balance of FPG portfolio, entertainment film business

grew 3% during 3Q06 with no significant changes occurring in

industry. 7. Other Results: 1. Achieved another milestone in 3Q06 marking the first time that digital earnings growth exceeded traditional earnings decline, with digital earnings increasing $98m from 3Q05 and traditional earnings declining $48m. 1. This follows another milestone achieved during 3Q05, when digital revenues exceeded traditional revenues for the first

time in Co. 2. Aforementioned accomplishments were key indicators of the success of strategy and key milestones on EK's part to

complete the transformations of the business. 3. Achieved cash goals ending 3Q06 with more than $1.1b of cash on hand, which was almost double 3Q05 result, while reducing debt by $129m in 3Q06. 4. During 3Q06, revenue was a bit softer than planned.

5. As indicated earlier this year, CDG began to realize the

benefit of trading and profitable revenue growth for margin

expansion, especially in the area of digital cameras and in

printer docks. 1. Consistent with long-term objectives, EK was able to maintain the Number 3 market share position both in the US and worldwide for consumer digital cameras on a YTD basis through Aug. 2. On the same basis, EK continued to be the market share

leader for printer dock products in the US. 6. This is a year of significant transition for [GCP]. 1. Last year, EK completed major acquisition program in this space, aiming at a revenue growth in 2006, including acquisitions in the [high-20s]. 1. EK is on track to achieve this. 2. This year, EK is concentrating on effectively integrating the acquired businesses into Korean single entity, so it can focus on growth next year. 3. Principal drivers of growth include digital plates, workflow software, commercial inkjet solutions, NexPress color products, and document scanners, which are all posting

strong growth. 1. Offsetting this growth this year are expected revenue declines, primarily from analog plates and graphic films.

4. Beginning in 2007, EK expects growth engines to more than

offset declines from other elements of the portfolio, and move EK toward expected topline growth rates in this business. 7. EK was pleased with success at the recent Graph Expo trade show in Chicago, where EK booked strong sales, particularly in areas of digital prepress and digital printing, reflecting customer interest in expanding the digital print services. 8. Portfolio of digital businesses is very seasonal, with more than 50% of consumer digital sales and greater than 40% of total corporate digital sales occurring during the last four months of the year.

9. Key piece of…