Kodak Takes Hit in Q4, Full-Year Gross Profit Improves

• Selling, General and Administrative expenses were $1.279 billion for full-year 2010, down 2 percent, from $1.302 billion in 2009.

• Research and Development expenses were $322 million for full-year 2010, down from $356 million in 2009.

• For full-year 2010, cash used before restructuring payments was $248 million, compared with $45 million cash generated in 2009, primarily due to lower proceeds from asset sales and a higher net use of cash for settlement of assets and liabilities. This corresponds to net cash used in operating activities of $219 million for 2010, compared with net cash used in operating activities of $136 million for 2009. Fourth-quarter cash generation, before restructuring payments, was $255 million, compared with $909 million in the year-ago quarter, primarily the result of a significant intellectual property licensing transaction in the fourth quarter of 2009. This corresponds to net cash provided by operating activities of $285 million for the fourth quarter of 2010 and $822 million for the year-ago period.