Kodak Streamlines Management Structure for Digital Future

Eastman Kodak Company announced today the establishment of a Chief Operating Office, a move designed to enable the streamlining of its senior management and enhance operational effectiveness as the necessary next step in the company’s digital transformation.

The Chief Operating Office will be led jointly by Philip J. Faraci, President, Consumer Digital Imaging Group, and James T. Langley, President, Graphic Communications Group, effective immediately. Faraci and Langley, who are Senior Vice Presidents of the company, will continue to be responsible for managing the day-to-day operational activity of their respective businesses.

Most importantly, Faraci and Langley will be jointly accountable for achieving this year the strategic objective of significantly reducing administrative costs and positioning Kodak for profitable growth in 2008. They will put in place the structures and processes needed to achieve a greater streamlining of management, deeper cost reductions, and greater leverage across the digital businesses to drive revenue growth. In turn, this will help Faraci and Langley to achieve the goals they outlined for their businesses at the company’s investor meeting in February.

Consistent with the establishment of the Chief Operating Office, the company will consolidate much of the corporate infrastructure that is presently dedicated to the businesses. With the anticipated sale of its Health Group, the company can be managed more effectively and economically by streamlining the organization. The businesses now will determine the amount of services that they require, thereby allowing the company to reduce cost and improve efficiency by pooling resources at the senior-most levels of the corporate functions.

“This move will lead to a leaner management structure that will speed decision-making, reduce cost, and help accelerate the company’s profitable growth,” said Antonio M. Perez, Kodak’s Chairman and Chief Executive Officer. “The changes represent a vital element of the restructuring that the company began in 2004 and will conclude this year. Beginning in 2008, Kodak will have in place the business model and the management structure required for sustained success in digital markets.”

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