KODAK AND APPLE TO WORK TOGETHER:
New Uses of Photography to Result from Close Business 
Relationship
  
  New York, Aug. 25__Kodak and Apple Computer, Inc., today 
announced they will work together closely to make high-quality 
photographs simple to use on mainstream personal computers.
  "We will combine Kodak's photographic imaging capabilities 
with Apple's easy-to-use Macintosh computer systems to make color 
images on computers more powerful and universally available," 
said Kay R. Whitmore, chairman, president, and CEO of Kodak.
  "We believe that Photo CD will have a major impact on the 
computer industry as it turns the promise of desktop color photo 
imaging from a wish to a reality," said John Sculley, Apple's 
chairman and CEO.
  "Kodak is the world leader in images, and Apple is the world 
leader in easy-to-use computer imaging systems," Sculley 
continued. "By joining forces in a broad relationship, both 
Kodak and Apple will be able to serve customers in new and 
exciting ways."
  The two companies will work closely together to bring the high 
quality of digital photographic color images to the computer 
desktop.
  
                             - 2 -

Apple Macintosh Computers Will Use Photo CD Images
  Apple will incorporate direct access to Photo CD images into 
both its current Macintosh operating system and System 7, and 
into future operating system projects. This will give Apple 
customers the ability to employ their existing 35 mm cameras and 
the Photo CD system to add photographic images to slide 
presentations, documents, 
multimedia presentations, and any application that can be 
enhanced with the use of images.
  
  Apple announced in March 1992 that the next version of its 
Macintosh QuickTime multimedia architecture will incorporate 
direct access to Photo CD images into Macintosh systems. In 
addition, major vendors of Macintosh applications have 
introduced, or will soon introduce, new software versions that 
read Photo CD images directly.
  Kodak also announced that it will use Apple Macintosh 
computers in the future in retail imaging workstations, on which 
picture-takers can create personal Kodak Photo CD Portfolio 
discs.
  
Apple to Purchase Kodak Color Printer Technology
    Whitmore also announced that Apple will purchase Kodak's new 
color electrophotographic printer technology for inclusion in 
future Apple systems. In a videotaped statement during 
Whitmore's speech, Sculley said, "This relationship is just the 
beginning of an effort with Kodak to define the future use of 
digital photographic quality images on computers."
  "Apple and Kodak are equally committed to continuous 
improvement in the quality, utility, and ease of use of their 
products," said Whitmore. "As Apple makes computers more 
accessible to consumers, Kodak will make high-quality 
photographic images easier to use on Apple computers. Our Photo 
CD system and electrophotographic technology are a perfect fit 
for Apple's next generation of computer systems."
                             - 3 -
  
Four New Photo CD Disc Formats
  The announcement that Kodak and Apple will form a closer 
working relationship came at a press conference during which 
Kodak announced several new business applications for the Photo 
CD system. 
  Kodak Photo CD players let people take pictures using negative 
or slide film with conventional cameras and view them on TV or 
use them on computers. New Photo CD-compatible CD-ROM XA drives 
and software let Apple Macintosh computer users take advantage of 
high-quality Photo CD images in any application that can benefit 
from the use of photographic images.
  Four new Photo CD disc formats were introduced:
  ù Kodak Photo CD Portfolio__for the creation of picture 
    stories with sound, graphics and interactive branching, for 
    home entertainment, education and business presentations
  ù Kodak Pro Photo CD Master__with large-format negative and 
    transparency film scans up to 4 x 6 inches, and other 
    commercial features for professional photographic 
    applications
  ù Kodak Photo CD Catalog__with up to 6,000 images, for 
    economical archiving and distribution of large numbers of 
    images
  ù Kodak Photo CD Medical__for medical applications using 
    high-quality images on TV and computer from disc
  
New Photo CD Applications
  Kodak also introduced the Kodak Professional Photo CD Image 
Library system. This new Photo CD application uses Kodak Photo 
CD jukeboxes connected to Apple Macintosh computers, plus 
software to store and retrieve vast collections of digital 
pictures. For remote phone access to large image databases, 
Kodak has created the Kodak Picture Exchange. This will bring a 
global network of on-line imaging services__eventually, millions 
of images__to anyone who uses photographs in their business.
    Consumers wanting to know more about the use of Photo CD 
products on Apple's Macintosh computers can call the Kodak 
Information Center at 
1-800-242-2424, extension 53.
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[Note: Kodak is a trademark.]