Exhibit (99.1)

EASTMAN KODAK COMPANY

Kodak Will Not Commercialize Film Processing Station

Changing Market Conditions, Plus Growth of Digital Printing
Strategy Cited

Rochester, N.Y., Dec. 13 - Eastman Kodak Company today said
it would cancel its program to market an automatic film
processing station, a self-service device it was developing
based on technologies acquired from Austin, Texas-based
Applied Science Fiction in May 2003.
     "The technology performed satisfactorily, but the
market opportunity we foresaw at the time of acquisition has
diminished due to the continuing decline in film processing
as well as the rapid growth of our digital printing
strategy," said Patrick D. King, general manager of Kodak's
Consumer Output business within its Digital & Film Imaging
Systems group and a Kodak vice president. "Introducing
additional film processing capacity into this market does
not represent the best use of resources for Kodak or its
retailers."
   As the company said in October, the rapid growth of
digital cameras will result in a projected decline of up to
30% in the consumer film market in the U.S. and 20%
worldwide in 2005.  Consultations with prospective customers
to determine the market and profit potential for its new
technology led Kodak to conclude the opportunity was greatly
diminished.
   "This decision is consistent with our focus to invest in
digital imaging solutions in consumer digital printing and
to invest in opportunities that present attractive returns,"
said King.  Kodak will continue to support and market the
Digital ICE photo enhancement software suite also acquired
from Applied Science Fiction.
   Kodak will take a charge of $45 million for costs
associated with the cancellation of the program.

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About Eastman Kodak Company and infoimaging

Kodak is the leader in helping people take, share, print and
view images - for memories, for information, for
entertainment.  The company is a major participant in
infoimaging, a $385 billion industry composed of devices
(digital cameras and flat-panel displays), infrastructure
(online networks and delivery systems for images) and
services & media (software, film and paper enabling people
to access, analyze and print images).  With sales of $12.9
billion in 2003, the company comprises several businesses:
Health, supplying the healthcare industry with traditional
and digital image capture and output products and services;
Graphic Communications Group, offering on-demand color
printing and networking publishing systems consisting of
three wholly owned subsidiaries:  Encad, Inc., NexPress
Solutions, and Kodak Versamark; Commercial Imaging, offering
image capture, output and storage products and services to
businesses and government; Display & Components, which
designs and manufactures state-of-the-art organic light-
emitting diode displays as well as other specialty
materials, and delivers imaging sensors to original
equipment manufacturers; and Digital & Film Imaging Systems,
providing consumers, professionals and cinematographers with
digital and traditional products and services.