Kodak’s Quarterly Report Highlights Progress in Business Transformation

• Operating expenses, on a GAAP basis, continue to decline as a result of company-wide cost reductions:

* Selling, General and Administrative (SG&A) expenses were $284 million, a $29 million decline from the prior-year quarter.

* Research and Development (R&D) expenses were $68 million, a $14 million decline from the prior-year quarter.