Kodak Details Restructuring Progress; Will ‘Wind Down’ Consumer Inkjet Printer Sales

Kodak remains committed to its significant installed base of consumer inkjet printer customers, who recognize the value proposition of affordable ink, high-quality output because of Kodak’s unique pigment-based inks, and advanced features including cloud printing. The company will provide its customers and retail partners the same level of service and support they have come to expect from Kodak.

In its motion to the Court, Kodak described specific accomplishments thus far, including:

• The formulation of a business strategy focused on commercial, packaging & functional printing solutions and enterprise services that will be the cornerstone of a plan of reorganization;

• The stabilization of its global business resulting in the maintenance of key customer and supplier relationships around the world;

• An extensive operational restructuring that has streamlined businesses and reduced corporate costs. This restructuring includes the reduction of Kodak’s global workforce by more than 2,700 positions so far in 2012, with the current expectation of a further reduction of at least 1,200 employees (up 200 from the 1,000 previously announced). This 23% headcount reduction will result in a savings of more than $340 million per year and a smaller workforce of approximately 13,100 employees;

• Negotiations with respect to a fair, equitable and permanent resolution of Kodak’s U.S. retiree benefit (OPEB) liability, which amounts to approximately $1.2 billion;

• Use of the applicable provisions of the Bankruptcy Code to renegotiate existing supply contracts or to enforce pre-petition contracts to achieve substantial cost savings;

• Actions to exit or sell unprofitable and declining businesses, such as the digital camera and on-line photo services businesses;

• Commencement of a process to sell the market-leading Personalized Imaging and Document Imaging businesses, which are not core to Kodak’s future. Kodak noted that, while the sale process is still in its early stages, there has already been significant interest among potential buyers for these businesses;

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