Kodak Reports Revenue Decline for Quarter, Digital Profits Improve

• Research and Development expenses were $81 million in the second quarter, as compared to $84 million in the year-ago quarter, as the company focuses research dollars on its core growth businesses.

• Second-quarter 2010 cash generation, before restructuring payments, reflected a use of $170 million. This compared with cash usage on the same basis of $136 million in the year-ago quarter. This corresponds to net cash used in continuing operations from operating activities on a GAAP basis of $173 million in the second quarter, compared with net cash used of $161 million in the second quarter of 2009. As has been the case in previous years, the company expects to generate the majority of its cash flow during the second half of the year, consistent with its historic seasonal pattern.