Exhibit (99.1)

EASTMAN KODAK COMPANY


CUTBACKS IN PRODUCTION AT KODAK INDUSTRIE CHALON PLANT
TO BE MADE AS PART OF WORLDWIDE CONSOLIDATIONS


     Chalon-sur-Saone, June 23, 2005 - Eastman Kodak Company continues
to implement a digital growth strategy that includes managing the
decline of the traditional photographic business and building a highly
competitive digital business model in consumer, commercial, and health
businesses.
     This strategy reflects the structural and fundamental changes
occurring worldwide in the photography industry as digital technology
becomes more popular and traditional consumer photography declines.
     "In order to remain competitive in light of the changing realities
in the imaging industry, Kodak is scaling back worldwide production
capacity, substantially reducing its manufacturing operations and
consolidating many different types of functions and operations at sites
around the world, while accelerating its digital imaging strategy," said
Daniel T. Meek, director of Global Manufacturing & Logistics for Kodak.
     In the latest action responding to the overall decline in
traditional film imaging, the company has informed the Chalon Works
Council that approximately 340 jobs would be affected by production
cutbacks and related actions at the plant.  Approximately 1,700 people
are employed currently at the Chalon facility.
     Kodak has already announced a number of similar actions to
consolidate worldwide production in response to the dramatic reductions
in demand for most traditional imaging products. These actions have
impacted operations in several different countries, including Australia,
Brazil, Canada, China, U. K., and U.S.A., in addition to France. The
site most affected by these actions is Kodak's worldwide imaging
production center in Rochester.  Such consolidations are taking place
throughout the imaging industry in response to the dramatic shift to
digital imaging.
     The Chalon job reduction reflects excess capacity worldwide for the
production of film, largely caused by the dramatic decline in demand for
consumer film and paper. While the reduction in Chalon primarily

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involves motion-picture film, which continues to enjoy strong customer
demand, Kodak must consolidate manufacturing worldwide because its
production is integrated. In order to remain competitive as overall
volume shrinks, production must be consolidated. The new focus of the
Chalon plant will be on the production of films for health imaging
markets.
       "These actions have nothing to do with the quality of the work by
our employees, which always has been exemplary.  It's about the overall
pressures of the global market shift and the strategic allocation of
Kodak assets on a worldwide scale," said J.P. Martel, President of Kodak
Industrie.
     Kodak Industrie said it will fulfill its contractual commitments to
employees and implement a severance program, which could include a
voluntary retirement and separation program, opportunities for employee
relocation within the company and assistance for employees seeking new
jobs. The company said that all employees would be treated fairly and
with respect.  It is expected that closures will be completed by April
2006.
      "Kodak has been a major economic factor in Chalon and the region
for many years, and we intend to participate actively in the successful
reindustrialization of the plant site. As our site shrinks, we are
working currently with consultants, in close collaboration with the
State and local authorities to create an industrial park and attract
both national and European companies in order to offset job losses.  A
number of companies have expressed strong interest in moving into
facilities at our Chalon site, which could bring new employment
opportunities for Kodak employees and help to reinforce the economic
structure of our region," Martel said.
     Kodak is committed to strengthening its leading position in all
segments of the French imaging market by continuing to offer a full
array of high-quality products and reliable services in the traditional
and digital imaging markets. To serve customers in France, Kodak will
continue to employ more than 2,000 people in a variety of manufacturing,
sales, marketing, service, and support activities.
     Although Kodak's traditional businesses are in decline, its digital
imaging strategy is proving successful as the company transforms itself.
For example:

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     - Kodak has installed nearly 2,000 Picture Maker Kiosks in France to
       make it easy for consumers to print digital pictures;

     - Kodak's share of the digital home printing market is about one-
       third;

     - The company has the number 3 position in digital camera sales
       worldwide, and has taken the lead position in the U.S. and several
       other major countries.