Exhibit 99.1

        Kodak's 4th-Quarter Sales Rise 12% to $4.197 Billion;
 Full-Year Digital Sales Exceed Traditional Sales for the First Time;
           4th-Qtr Digital Sales Surge 45%, Led by Graphic
                 Communications and Consumer Digital

    ROCHESTER, N.Y.--(BUSINESS WIRE)--Jan. 30, 2006--Eastman Kodak
Company

    Company Exceeds Full-Year Cash Goals; Delivers $1.180 Billion in
    Net Cash From Operating Activities in 2005; Cash Balance Totals
    $1.665 Billion at Year-end

    4th-Qtr GAAP Net Loss of $52 Million ($0.18 Per Share), Largely
    Reflecting Restructuring Charges, Tax Benefits and Cumulative
    Effect of an Accounting Change

    Eastman Kodak Company today reported that revenue rose 12% in the
fourth quarter, led by a 45% increase in the sale of digital products
and services. The performance includes strong demand for the
market-leading offerings from the company's consumer digital portfolio
and the successful completion of the company's acquisition program to
support its Graphic Communications business. For all of 2005, digital
sales represented 54% of total revenue, marking the first time in the
company's history that digital revenue exceeded traditional.
    On the basis of generally accepted accounting principles in the
U.S. (GAAP), the company reported a fourth-quarter loss of $52
million, or $0.18 per share. This largely stems from $283 million in
after-tax restructuring charges, partially offset by the previously
announced tax audit settlement between the company and the Internal
Revenue Service that resulted in the reversal of certain tax accruals
totaling $243 million.

    For the fourth quarter of 2005:

    --  Sales totaled $4.197 billion, an increase of 12% from $3.759
        billion in the fourth quarter of 2004. Digital revenue totaled
        $2.674 billion, a 45% increase from $1.850 billion.
        Traditional revenue totaled $1.514 billion, a 21% decline from
        $1.905 billion.

    --  The GAAP net loss was $52 million, or $0.18 per share,
        compared with a GAAP loss of $59 million, or $0.20 per share,
        in the year-ago period.

    --  The company's fourth-quarter loss from continuing operations,
        before interest, other income, net, and income taxes was $162
        million, compared with a loss of $236 million in the year-ago
        quarter.

    --  Digital earnings were $161 million, and were favorably
        impacted by a number of items, including a year-over-year
        increase in royalty income, which reflects the company's
        continuing progress in the monetization of its intellectual
        property, as well as the favorable impact resulting from the
        company's Graphic Communications Group acquisition program.

    "Kodak is now a thriving digital company," said Antonio M. Perez,
Chairman and Chief Executive Officer, Eastman Kodak Company. "The
fourth quarter marked the first time that we managed the company as it
will be run in 2006, and the digital earnings performance was
exceptional. And for all of 2005, we made tremendous progress on our
digital transformation. We completed an aggressive acquisition program
that established Kodak as a powerhouse in the graphic communications
market, we strengthened our market position in consumer digital with
several innovative new product introductions, and we made substantial
progress on our goal of reducing our traditional manufacturing
footprint, while benefiting from the strong cash flows available from
that business. We enjoy a solid cash position, and we are determined
to expand profit margins in the sizable digital businesses that we
have assembled."

    Other fourth-quarter 2005 details:

    --  Net cash provided by operating activities from continuing
        operations totaled $1.240 billion in the fourth quarter,
        compared with $702 million in the year-ago quarter.

    --  Gross Profit was 22.8%, down from 25.9%, primarily due to
        increased restructuring and the cost of accelerated
        depreciation and asset useful life changes.

    --  Selling, General and Administrative expenses were $748
        million, up from $710 million, reflecting costs related to
        acquisitions, partially offset by cost reduction activities.

    --  Debt decreased $35 million from the third-quarter level, to
        $3.528 billion as of Dec. 31. In 2005, debt increased $1.207
        billion, reflecting more than $1.5 billion relating to
        acquisitions, partially offset by $300 million in scheduled
        debt repayments.

    --  Kodak held $1.665 billion in cash as of Dec. 31, up from $610
        million on Sept. 30, and up from $1.255 billion at the end of
        2004.

    Segment sales and results from continuing operations, before
interest, other income, net, and income taxes (earnings from
operations) for the fourth quarter of 2005, are as follows:

    --  Digital & Film Imaging System sales totaled $2.513 billion,
        down 3%. Earnings from operations for the segment were $76
        million, compared with $135 million a year ago. Highlights for
        the quarter included a 65% increase in sales of home printing
        products and inkjet media, including a 95% increase in the
        sales of KODAK EASYSHARE Printer Docks; a 41% increase in
        consumer digital capture sales, which includes KODAK EASYSHARE
        digital cameras; and a 23% increase in the sales of KODAK
        PICTURE MAKER kiosks and related media.

    --  Graphic Communications Group sales were $942 million, up 141%
        largely reflecting the acquisition of KPG and Creo, as well as
        a 38% increase in Kodak Versamark sales. Earnings from
        operations in the fourth quarter were $40 million, compared
        with a loss of $15 million in the year-ago quarter.

    --  Health Group sales were $700 million, down 6%. Earnings from
        operations for the segment were $83 million, compared with
        $113 million a year ago. Highlights for the quarter included a
        45% increase in Healthcare Information System sales.

    --  All Other sales were $42 million, up 17% from the year-ago
        quarter. The loss from operations totaled $43 million,
        compared with a loss of $72 million a year ago. The All Other
        category includes the Display & Components operation as well
        as investments in new technologies.

    2005 full-year results:

    --  For the year, sales were $14.268 billion, up 6% from $13.517
        billion in 2004.

    --  Reported net loss for the year totaled $1.371 billion, or
        $4.76 per share, compared with net earnings of $556 million,
        or $1.94 per share, in 2004, largely stemming from a $1.1
        billion non-cash charge in 2005 to record a valuation
        allowance against the net deferred tax assets in the U.S. The
        establishment of the valuation allowance was required due to
        the company's continuing losses in the U.S. resulting from the
        accelerated and extensive restructuring activity required by
        the decline in the traditional businesses. Also contributing
        to the decrease in earnings relative to 2004 is the
        year-over-year increase in restructuring charges of $245
        million, a year-over-year decrease in earnings from
        discontinued operations of $325 million, due primarily to the
        gain in 2004 from the sale of the company's Remote Sensing
        Systems unit, and a charge for a cumulative effect of an
        accounting change of $57 million in 2005.

    --  Net cash provided by operating activities from continuing
        operations totaled $1.180 billion for the year, compared with
        $1.146 billion in 2004.

    Outlook for 2006:

    Kodak expects 2006 digital revenue growth between 16% and 22%,
with total revenue growth between negative 2% and a positive 4%. The
company also expects to increase digital earnings to a range of $350
million to $450 million, with total earnings from operations, which is
the most directly comparable GAAP financial measure, of a negative
$900 million to a negative $1.1 billion. The loss from operations
range is largely being driven by the ongoing restructuring actions.
The company expects investable cash flow to be between $400 million
and $600 million, with net cash provided by operating activities from
continued operations of $800 million to $1.0 billion.
    "We are now more than halfway through our transformation, and we
have proven our ability to drive sales in digital markets and to
generate the cash necessary to fund our growth," Perez said. "We enter
2006 with solid momentum and a stronger emphasis on profitable growth.
Our focus this year - beyond digital revenue growth and cash
generation - will be expanding the margins of our digital businesses,
now that we've amassed the scale necessary to be a market force. We
are confident that we have the management and the strategies in place
to achieve this goal and to generate value for our shareholders."

    Antonio Perez and Robert Brust, Kodak's Chief Financial Officer,
will hold a meeting with investors today to discuss fourth quarter &
full year 2005 financial results and provide an outlook on expected
2006 performance. The meeting will be held at the Equitable Center,
787 Seventh Avenue (between 51st & 52nd Streets), beginning at 1:00 PM
ET. The event is expected to conclude by 3:00 PM ET.
    Those who are unable to attend the meeting in person may
participate via conference call (listen mode only) by dialing
913-981-5542, reference number 6473137. The conference call will begin
promptly at 1:00 PM ET. Participants may also listen via webcast by
accessing the Kodak.com Investors web page at:
http://www.kodak.com/go/invest.

    The call will be recorded and available for playback by 8:00 AM on
Tuesday, January 31, by dialing 719-457-0820, reference number
6473137. The playback number will be active until Tuesday, February 7,
at 5:00 PM ET. Also, the web cast will be archived and available for
replay on this site approximately 1 hour following the live broadcast.

    Accounting for Employee Stock Option Awards:

    On January 1, 2005, the Company adopted FASB Statement No. 123(R),
Share Based Payment, and began recognizing expense related to its
employee stock option awards. The FASB recently issued a proposed
staff position (FSP) which, if adopted as proposed, would require
companies to classify employee stock options with contingent cash
settlement features as equity awards provided the contingent event,
such as a change in control event, is not considered probable of
occurring. This classification would be consistent with the Company's
present classification of its outstanding stock option awards with
contingent cash settlement features. All financial information
reported in this press release is presented on a U.S. GAAP basis
assuming the proposed FSP is adopted as currently drafted. However, if
the FASB does not finalize, or changes the final provisions of the
proposed FSP, the Company would be required to reclassify certain of
its stock option awards to a liability as of January 1, 2005, and as
of the end of each quarter in 2005. A change in the Company's present
classification as equity of certain of the Company's stock option
awards would also require the Company to record a liability and report
the impact of recording the liability as the cumulative effect of a
change in accounting principle as of January 1, 2005, in the Company's
Statement of Operations for the first quarter of 2005. In addition to
the reclassification of existing liabilities and the recording of an
additional liability, the Company would record the change in fair
value of those awards in the Statement of Operations each quarter, and
accordingly, the net loss as originally reported in each quarter of
2005 may change. The Company has not yet computed what (1) the
cumulative effect of the change in accounting principle as of January
1, 2005, would be or (2) what the impact would be on the net loss for
each of the quarters in 2005 if the FASB does not issue the FSP as
drafted. The Company believes that the impact of recording the
additional liability would be material.

    Safe Harbor Statement:

    Digital and traditional revenues, digital revenue growth, digital
earnings, and investable cash flow are non-GAAP financial measures as
defined by the Securities and Exchange Commission's final rules under
"Conditions for Use of Non-GAAP Financial Measures." Reconciliations
of these measures included in this press release to the most directly
comparable GAAP financial measures can be found in the Financial
Discussion Document attached to this press release.
    Certain statements in this press release may be forward looking in
nature, or "forward-looking statements" as defined in the United
States Private Securities Litigation Reform Act of 1995. For example,
references to expectations for the Company's earnings, revenue,
revenue growth, and cash are forward-looking statements.
    Actual results may differ from those expressed or implied in
forward-looking statements. In addition, any forward-looking
statements represent our estimates only as of the date they are made,
and should not be relied upon as representing our estimates as of any
subsequent date. While we may elect to update forward-looking
statements at some point in the future, we specifically disclaim any
obligation to do so, even if our estimates change. The forward-looking
statements contained in this press release are subject to a number of
factors and uncertainties, including the successful:

    --  Implementation of our digital growth and profitability
        strategies, business model, and cash plan;

    --  Implementation of a changed segment structure;

    --  Implementation of our cost reduction program, including asset
        rationalization and monetization, reduction in sales, general
        and administrative costs and personnel reductions;

    --  Implementation of, and performance under, our debt management
        program;

    --  Implementation of product strategies (including category
        expansion, digitization, organic light emitting diode (OLED)
        displays, and digital products);

    --  Implementation of intellectual property licensing and other
        strategies;

    --  Development and implementation of e-commerce strategies;

    --  Completion of information systems upgrades, including SAP, our
        enterprise system software;

    --  Completion of various portfolio actions;

    --  Reduction of inventories;

    --  Integration of newly acquired businesses;

    --  Improvement in manufacturing productivity and techniques;

    --  Improvement in receivables performance;

    --  Reduction in capital expenditures;

    --  Improvement in supply chain efficiency and management of
        sourcing relationships;

    --  Implementation of our strategies designed to address the
        decline in our traditional businesses; and

    --  Performance of our business in emerging markets like China,
        India, Brazil, Mexico and Russia;

    Forward-looking statements contained in this press release are
subject to the following additional risk factors:

    --  Inherent unpredictability of currency fluctuations and raw
        material costs;

    --  Competitive actions, including pricing;

    --  Changes in our debt credit ratings and our ability to access
        capital markets;

    --  The nature and pace of technology evolution, including the
        traditional-to-digital transformation;

    --  Continuing customer consolidation and buying power;

    --  Current and future proposed changes to accounting rules and to
        tax laws, as well as other factors which could adversely
        impact our effective tax rate in the future;

    --  General economic, business, geopolitical, regulatory and
        public health conditions;

    --  Market growth predictions, and

    --  Other factors and uncertainties disclosed from time to time in
        our filings with the Securities and Exchange Commission;

    Any forward-looking statements in this press release should be
evaluated in light of these important factors and uncertainties.