Kodak Acts to Strengthen Financial Position

The Senior Secured Notes also will bear interest payable-in-kind ("PIK Interest"), which will be paid by increasing the principal amount of the Senior Secured Notes. The amount of PIK Interest will be fixed at a rate between 0.50% and 1.50% per annum, which will be determined based on the final size of the private financing transaction. In addition, the Senior Secured Notes may be issued at a discount based on the strike price of the warrants.