Kodak Awards Second Stock Option Grant To EmployeesWorldwide.

Business Editors

ROCHESTER, N.Y.--(BUSINESS WIRE)--Mar. 13, 2000

Eastman Kodak Company today announced that it will make a special grant of stock options to non-management employees worldwide.

In making the announcement, Kodak President and CEO Dan Carp said, "We

"This is the second grant we have made, and I believe it is a particularly appropriate reward because it encourages employees to think and act like owners of the company. For employees and owners alike, the grant is a good use of company resources in rewarding employees at a time when Kodak stock represents a terrific buying opportunity."

Each regular, full-time and part-time, non-management employee of Eastman Kodak Company and most of its 70%-or-more-owned subsidiaries worldwide (approximately 80,000 people) will be awarded a non-qualified stock option to purchase 100 shares of common stock at a price to be determined by the close of market today. That price will be the average of the high and low selling prices for Kodak stock traded on the New York Stock Exchange today. Employees will have 10 years to exercise these options which will vest at the end of two years. In some countries, for legal or tax reasons, alternative programs will be put in place or a different option price may apply.

Today's grant is the second that the company has made to its non-management employees around the world. A similar grant of options for 100 shares of common stock for each employee was made in April of 1998 with a two-year vesting period, exercisable over ten years.

The company's philosophy in awarding these all-employee stock option grants is to make the creation of shareholder value a more direct role in employee compensation. The company feels that the interests of Kodak employees will be more aligned with the interests of shareholders with this stock option grant. In the U.S., the company also pays a Wage Dividend, which is a profit-sharing program based on economic value-added, a financial measure that typically aligns with the creation of shareholder value.

Awards granted to employees in certain countries are conditioned on receiving the necessary government or regulatory approvals, and complying with local legal requirements and any conditions imposed by the local government or regulatory agency.

Editor's Note: For additional information about Kodak, visit our web site on the Internet at: www.kodak.com/