Exhibit 99.1

        Kodak's 3rd-Quarter Sales Rise 5% to $3.553 Billion


    ROCHESTER, N.Y.--(BUSINESS WIRE)--Oct. 19, 2005--Eastman Kodak

    --  Digital Sales Surge 47%, Led by Graphic Communications and
        Consumer Portfolio

    --  3rd-Qtr GAAP Net Loss Totals $1.029 Billion ($3.58 Per Share),
        Largely Reflecting Tax Valuation Allowances and Accelerated
        Restructuring Charges

    --  Company Reaffirms Three Key Metrics from September Investor
        Meeting: Digital Revenue Growth, Digital Earnings Growth and
        Cash Generation

    Eastman Kodak Company reported that revenue rose 5% in the third
quarter, led by a 47% increase in the sale of digital products and
services. The performance primarily reflects strong demand for the
market-leading offerings from the company's Graphic Communications and
consumer digital portfolio.
    On the basis of generally accepted accounting principles in the
U.S. (GAAP), the company reported a third-quarter loss of $1.029
billion, or $3.58 per share, largely stemming from a $900 million
($3.13 per share) non-cash charge to record a valuation allowance
against the net deferred tax assets in the U.S. This reserve was an
accounting requirement resulting from the company's continuing losses
in the U.S. created by the accelerated and extensive restructuring
activity required by the decline in the traditional business.

    For the third quarter of 2005:

    --  Sales totaled $3.553 billion, an increase of 5% from $3.374
        billion in the third quarter of 2004. Digital revenue totaled
        $1.888 billion, a 47% increase from $1.283 billion.
        Traditional revenue totaled $1.661 billion, a 20% decline from
        $2.085 billion.

    --  The GAAP net loss was $1.029 billion, or $3.58 per share,
        compared with GAAP earnings of $458 million, or $1.60 per
        share, in the year-ago period.

    --  The company's loss from continuing operations in the quarter,
        before income taxes, interest, and the net of other income and
        charges, was $103 million, compared with earnings from
        operations of $3 million in the year-ago quarter.

    --  Digital earnings were $10 million, compared with $6 million in
        the year-ago quarter. This includes the favorable impact of
        $18 million in the third quarter of reallocating certain costs
        from the digital business to the traditional business, as well
        as a $5 million charge for reducing the useful life of certain
        digital assets. To calculate a common basis of comparison with
        the company's full-year digital earnings projection, as
        adjusted for the two accounting changes cited, requires the
        exclusion of $44 million of costs associated with Creo's
        operating results and purchase accounting for the KPG and Creo
        acquisitions, as well as the exclusion of $12 million of
        in-process research and development credits. On this basis,
        digital earnings in the third quarter were $42 million, and
        they were greatly improved in September versus the first two
        months of the quarter. This supports the company's previously
        expressed view that the bulk of Kodak's digital earnings in
        2005 will be generated in the last four months of the year.

    "In the third quarter, our digital revenue exceeded our
traditional revenue for the first time on a quarterly basis,
representing another milestone in our digital transformation," said
Antonio M. Perez, Chief Executive Officer and President, Eastman Kodak
Company. "As importantly, on the basis outlined above, our digital
earnings were 3.5 times greater than in the year-ago quarter, and
September's significant improvement increases our confidence for
strong digital earnings in the fourth quarter.
    "We remain committed to the 2005 cash flow target presented at our
Sept. 28 investor meeting," Perez said. "For the quarter, our cash
flow performance was consistent with our expectations, our cash
balance increased, and our debt decreased sequentially from the second
quarter. We are delivering on the three key metrics by which we are
managing the company: digital revenue growth, digital earnings growth
and the generation of cash.
    "Within the business units, we continue to see widespread evidence
of the success of our digital transformation," Perez said. "Our
Graphic Communications Group continues to demonstrate strong growth,
coming off a very successful Print 05 trade show in September. In our
Health Group, operating margins in the quarter rebounded from a soft
start earlier this year, led by solid sales of computed radiography
systems. On the consumer side, we began shipping last month the
groundbreaking EASYSHARE-ONE zoom digital camera, making Kodak the
first company to bring a Wi-Fi consumer digital camera to market."

    Other third-quarter 2005 details:

    --  Net cash provided by operating activities from continuing
        operations, as determined in accordance with GAAP, totaled
        $370 million in the third quarter, compared with $411 million
        in the year-ago quarter.

    --  Gross Profit on a GAAP basis was 26.3%, down from 32.0%,
        primarily because of increased restructuring activity compared
        with the year-ago period.

    --  Selling, General and Administrative expenses were 18.9% of
        sales, up from 18.6%, primarily reflecting the additional
        costs incurred through the ownership of KPG and Creo.

    --  Debt decreased $158 million from the second-quarter level, to
        $3.563 billion as of Sept. 30. So far this year, debt has
        increased $1.242 billion, reflecting more than $1.5 billion
        relating to acquisitions.

    --  Kodak held $610 million in cash on its balance sheet as of
        Sept. 30, up from $553 million on June 30, and down from
        $1.255 billion at the end of 2004. The company expects its
        cash balance to exceed $1 billion by the end of 2005.

    "Even after paying down debt and spending more on restructuring, I
am pleased with our ability to increase our cash balance from the
previous quarter," said Robert H. Brust, Kodak's Chief Financial
Officer. "We remain confident in our ability to generate cash, and we
note that the $900 million charge involving deferred tax assets in the
U.S. has no cash impact. What's more, the net deferred tax assets can
be realized in the future. The write-down results from current and
expected future losses in the U.S. created by our accelerated and
extensive restructuring actions. As a result, management has concluded
that a valuation allowance is required under U.S. accounting rules."
    Segment sales and results from continuing operations, before
interest, taxes, and other income and charges (earnings from
operations), are as follows:

    --  Digital & Film Imaging sales totaled $1.995 billion, down 16%.
        Earnings from operations for the segment were $108 million,
        compared with $230 million a year ago. Highlights for the
        quarter included a 48% increase in the sales of KODAK PICTURE
        MAKER kiosks and related media; a 45% increase in sales of
        home printing products and media, including KODAK EASYSHARE
        Printer Docks; and a 20% increase in consumer digital capture
        sales, which includes KODAK EASYSHARE cameras.

    --  Graphic Communications Group sales were $886 million, up 158%,
        largely reflecting the acquisition of KPG and Creo. Earnings
        from operations in the third quarter were $15 million,
        compared with a loss of $16 million in the year-ago quarter.

    --  Health Group sales were $635 million, down 1%. Earnings from
        operations for the segment were $90 million, compared with
        $106 million a year ago. Highlights included a 24% increase in
        digital capture systems, reflecting a rebound in sales of
        computed radiography systems, as well as strong sales of
        healthcare information systems.

    --  All Other sales were $37 million, up 48% from the year-ago
        quarter. The loss from operations totaled $55 million,
        compared with a loss of $53 million a year ago. The All Other
        category includes the Display & Components operation and other
        miscellaneous businesses.

    "As I indicated at our investor meeting on Sept. 28, we anticipate
that more than 40% of the company's total digital revenue in 2005 will
occur in the last four months of the year, reflecting the seasonality
common to digital markets and the company's acquisitions earlier this
year," Perez said. "As those sales occur, we will enjoy increased
digital earnings, as September's performance shows.
    "We've made it clear that we measure success against the three
critical metrics that best reflect the company we are building -
digital revenue growth, digital earnings growth and cash flow," Perez
said. "In each category, our performance in the third quarter was in
line with the expectations presented on Sept. 28, and we intend to
carry this momentum into the fourth quarter and 2006."

    Antonio Perez and Robert Brust will host a conference call with
investors at 11:00 a.m. eastern time today. To access the call, please
use the direct dial-in number: 913-981-4910, access code 6565459.
There is no need to pre-register.
    For those wishing to participate via an Internet Broadcast, please
access our Kodak Investor Relations web page at:
http://www.kodak.com/go/invest.
    The call will be recorded and available for playback by 2:00 p.m.
eastern time today by dialing 719-457-0820, access code 6565459. The
playback number will be active until Wednesday, Oct. 26, at 5:00 p.m.
eastern time.

    Digital and traditional revenues, digital earnings, and digital
earnings excluding certain purchase accounting costs for KPG and Creo
and operating results for Creo 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 these measures 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 earnings, revenue, and
cash 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 this press release are subject to a number of
factors and uncertainties, including the successful:

    --  Implementation of our digital growth strategy and business
        model;

    --  Implementation of a changed segment structure;

    --  Implementation of our cost reduction program, including asset
        rationalization, reduction in general and administrative costs
        and personnel reductions;

    --  Implementation of, and performance under, our debt management
        program;

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

    --  Implementation of intellectual property licensing and other
        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 our strategies designed to address the
        decline in our analog businesses; and

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

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

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

    --  Competitive actions, including pricing;

    --  Changes in our debt credit ratings and our ability to access
        capital markets;

    --  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 Company
             Media:
             Gerard Meuchner, 585-724-4513
             gerard.meuchner@kodak.com
             or
             David Lanzillo, 585-781-5481
             david.lanzillo@kodak.com
             or
             Investor Relations:
             Don Flick, 585-724-4352
             donald.flick@kodak.com
             or
             Patty Yahn-Urlaub, 585-724-4683
             patty.yahn-urlaub@kodak.com