Exhibit 99.1

              Kodak Has 3rd-Quarter Reported Net Income
                         of $1.67 Per Share;

              EPS from Continuing Operations, Excluding
                Non-Operational Items, Totals 79 Cents


    ROCHESTER, N.Y.--(BUSINESS WIRE)--Oct. 20, 2004--Eastman Kodak
Company today said third-quarter reported net income totaled $1.67 per
share and revenue rose 1%, as increased demand for the company's
digital portfolio continues to offset declining sales of some
traditional products and services. Revenue also benefited from
favorable foreign exchange.
    Kodak's net income for the quarter included income from
discontinued operations of $1.51 per share. Excluding the discontinued
operations, income from continuing operations was 16 cents per share.
The company also recorded charges in the quarter totaling 63 cents per
share, primarily related to the focused cost reductions announced in
January. By removing the charges from the calculation of earnings from
continuing operations, Kodak had operational earnings per share of 79
cents.
    For the third quarter of 2004:

    --  Sales totaled $3.364 billion, an increase of 1% from $3.346
        billion in the third quarter of 2003. Excluding foreign
        exchange, sales decreased 2%.

    --  The company reported net income of $479 million, or $1.67 per
        share, compared with $122 million, or 42 cents per share, in
        the third quarter of 2003. The net income from discontinued
        operations of $1.51 per share in the third quarter of 2004
        reflects the $434 million gain on the sale of the company's
        Remote Sensing Systems operation to ITT Industries Inc.

    --  Earnings from continuing operations, excluding the impact of
        the focused cost reductions, were $226 million, or 79 cents
        per share. The non-operational items include charges totaling
        63 cents per share, primarily related to the previously
        announced focused cost reductions. In the third quarter of
        2003, earnings from continuing operations, excluding
        non-operational items, were $246 million, or 86 cents per
        share.

    "Kodak continues to deliver on its commitment to improve its
full-year earnings performance during our digital transformation,"
said Kodak Chairman and Chief Executive Officer Daniel A. Carp. "Ever
since we presented our digitally oriented growth strategy in September
2003, the company has met its earnings projections by managing smartly
its traditional businesses and containing cost throughout the
organization, while also driving growth in its digital businesses.
Kodak's digital revenue, for example, increased 39% in the third
quarter, essentially offsetting a decline of 13% in traditional
revenue. What's more, the performance of our acquisitions remains on
target, and our already solid balance sheet strengthened further
during the quarter."

    Other third-quarter 2004 details from continuing operations:

    --  For the quarter, operating cash flow excluding acquisitions
        was $257 million, compared with $252 million for the third
        quarter of 2003. (Kodak defines operating cash flow excluding
        acquisitions as net cash provided by continuing operations, as
        determined under Generally Accepted Accounting Principles in
        the U.S. (U.S. GAAP), plus proceeds from the sale of assets,
        minus capital expenditures, investments in unconsolidated
        affiliates and dividends.)

    --  Debt decreased $584 million from the year-end level to $2.664
        billion, reflecting substantial progress in achieving the
        company's commitment to reduce debt this year by as much as
        $800 million. The debt-to-capital ratio decreased to 41.3%
        from 49.9% at the end of 2003. The company held $1.113 billion
        in cash on its balance sheet at the end of the quarter, up
        from $519 million at the end of the second quarter, reflecting
        $710 million in net cash proceeds from the RSS sale. The cash
        balance was $1.25 billion at the end of 2003.

    --  Gross Profit on an operational basis was 33.1%, down from the
        year-ago level of 34%.

    --  Selling, General and Administrative expenses on an operational
        basis were 18.8% of sales, up from 18.6% in the year-ago
        quarter, largely reflecting the effect of acquisitions in the
        past year.

    --  The company benefited from a lower estimated annual effective
        tax rate, which contributed 7 cents to operational and GAAP
        earnings per share.

    The segment results from continuing operations for the third
quarter of 2004 are as follows:

    --  Digital & Film Imaging segment sales totaled $2.308 billion,
        down 7%. Earnings from operations for the segment were $214
        million on a GAAP and an operational basis, compared with $204
        million a year ago. Highlights for the quarter included a 41%
        increase in the sales of KODAK Picture Maker kiosks and
        related media; a 41% increase in consumer digital capture
        sales, which includes the KODAK EASYSHARE cameras; and
        continued strong sales of motion-picture origination and print
        film. The segment's earnings from operations increased largely
        because of administrative cost reductions, higher
        manufacturing productivity and an improved year-over-year
        earnings performance by retail and wholesale photofinishing
        operations. For the quarter, the company estimates that U.S.
        consumer film industry volume declined about 20% compared with
        the third quarter of 2003.

    --  Health Imaging sales were $642 million, up 12%. Earnings from
        operations for the segment were $102 million on a GAAP and
        operational basis, compared with $117 million a year ago.
        Highlights included a 24% increase in sales of digital
        products and services.

    --  Commercial Imaging sales were $195 million, up 3%. Earnings
        from operations were $33 million on a GAAP and operational
        basis, compared with $24 million a year ago. The segment's
        results reflect in part solid demand for imaging services.

    --  Graphic Communications sales were $195 million, up 138%,
        largely reflecting the acquisition this year of Kodak
        Versamark and NexPress. The loss from operations was $40
        million on a GAAP and operational basis, compared with a loss
        of $3 million a year ago. The integration plans are on or
        ahead of schedule for both Kodak Versamark and NexPress, and
        both subsidiaries are enjoying solid demand for their products
        and services.

    --  All Other sales were $24 million, down 14% from the year-ago
        quarter. The loss from operations totaled $49 million on a
        GAAP basis and $43 million on an operational basis, compared
        with a loss of $18 million a year ago. The difference in GAAP
        and operational earnings reflects a $6 million charge for
        in-process R&D. The All Other category includes the Display &
        Components operation and other miscellaneous businesses.

     Earnings Outlook:

    --  Kodak reaffirms its full-year operational earnings guidance of
        $2.44 to $2.64 per share, and GAAP earnings of $2.49 to $2.69
        per share. The range does not include a number of variables,
        such as the expected adoption in the fourth quarter of
        accounting rules related to contingent convertible debt, and
        the potential reversal of a reserve related to a proposed
        change in U.S. tax law affecting exporters.

    "Our third-quarter results demonstrate yet again the company's
success in managing our digital transformation," said Kodak President
and Chief Operating Officer Antonio M. Perez. "We continue to post
strong revenue gains in our digital portfolio, and we are making the
most of our traditional businesses by capitalizing on opportunities in
emerging markets and reducing costs ahead of the decline in demand. We
now expect that demand for consumer film industrywide will decline
approximately 20% worldwide in 2005, with U.S. demand declining as
much as 30%.

    "The consumer film forecast is incorporated into the company's
strategic outlook, which continues to call for operational earnings
per share of $3 in 2006," Perez said. "The success to date in driving
digital sales and reducing costs reinforces our confidence in our
strategy and our ability to generate value for shareholders."

    Operational items are non-GAAP financial measures as defined by
the Securities and Exchange Commission's final rules under "Conditions
for Use of Non-GAAP Financial Measures." Reconciliations of
operational items included in this press release to the most directly
comparable GAAP financial measures can be found in the Financial
Discussion Document attached to this press release.

    Certain statements in this press release may be forward looking in
nature, or "forward-looking statements" as defined in the United
States Private Securities Litigation Reform Act of 1995. For example,
references to expectations for the Company's growth in sales and
earnings, the effects of legislation, cash generation, tax rate, and
debt reduction plans are forward-looking statements.

    Actual results may differ from those expressed or implied in
forward-looking statements. In addition, any forward-looking
statements represent our estimates only as of the date they are made,
and should not be relied upon as representing our estimates as of any
subsequent date. While we may elect to update forward-looking
statements at some point in the future, we specifically disclaim any
obligation to do so, even if our estimates change. The forward-looking
statements contained in these presentations are subject to a number of
factors and uncertainties, the successful:

    --  Implementation of our digitally oriented growth strategy;

    --  Implementation of our recently announced three-year cost
        reduction program;

    --  Implementation of our debt reduction plans;

    --  Implementation of product strategies (including category
        expansion, digitization, organic light emitting diode (OLED)
        displays, and digital products);

    --  Implementation of intellectual property licensing strategies;

    --  Development and implementation of e-commerce strategies;

    --  Completion of information systems upgrades, including SAP, our
        enterprise system software;

    --  Completion of various portfolio actions;

    --  Reduction of inventories;

    --  Integration of newly acquired businesses;

    --  Improvement in manufacturing productivity and techniques;

    --  Improvement in receivables performance;

    --  Reduction in capital expenditures;

    --  Improvement in supply chain efficiency;

    --  Implementation of future focused cost reductions, including
        personnel reductions; and

    --  Development of our business in emerging markets like China,
        India, Brazil, Mexico and Russia;

    Forward-looking statements contained in this presentation are
subject to the following additional risk factors:

    --  Inherent unpredictability of currency fluctuations and raw
        material costs;

    --  Competitive actions, including pricing;

    --  The nature and pace of technology evolution, including the
        analog-to-digital transition;

    --  Continuing customer consolidation and buying power;

    --  Current and future proposed changes to tax laws, as well as
        other factors which could adversely impact our effective tax
        rate in the future;

    --  General economic, business, geopolitical, regulatory and
        public health conditions;

    --  Market growth predictions; and

    --  Other factors and uncertainties disclosed from time to time in
        our filings with the Securities and Exchange Commission.

    Any forward-looking statements in this press release should be
evaluated in light of these important factors and uncertainties.

    CONTACT: Eastman Kodak
             Media Contacts:
             Gerard Meuchner, 585-724-4513
             gerard.meuchner@kodak.com
             or
             Dave Lanzillo, 585-781-5481
             david.lanzillo@kodak.com
             or
             Investor Relations Contacts:
             Don Flick, 585-724-4352
             donald.flick@kodak.com
             or
             Carol Wilke, 585-724-6791
             carol.wilke@kodak.com
             or
             Patty Yahn-Urlaub, 585-724-4683
             patty.yahn-urlaub@kodak.com