In addition to the foregoing environmental actions, the Company is currently implementing a Corrective Action Program required by the Resource Conservation and Recovery Act (RCRA) at the Kodak Park site in Rochester, NY. As part of this Program, the Company has completed the RCRA Facility Assessment (RFA), a broad-based environmental investigation of the site. The Company is currently in the process of completing, and in some cases has completed, RCRA Facility Investigations (RFIs) and Corrective Measures Studies (CMS) for areas at the site. Estimated future remediation costs are accrued by the Company and are included in remediation accruals recorded at December 31, 2000.

The Clean Air Act Amendments were enacted in 1990. Expenditures to comply with the Clean Air Act implementing regulations issued to date have not been material and have been primarily capital in nature. In addition, future expenditures for existing regulations, which are primarily capital in nature, are not expected to be material. Many of the regulations to be promulgated pursuant to this Act have not been issued.

The Company has retained certain obligations for environmental remediation and Superfund matters related to the non-imaging health businesses sold in 1994. Actions to fulfill these remedial obligations are not expected to be completed in the near term and costs related to the obligations are included in accruals recorded at December 31, 2000 and 1999. Also included in these accruals are responsibilities for the liabilities associated with the non-imaging health businesses as a PRP in approximately four active Superfund sites.

Other Commitments and Contingencies  The Company has entered into agreements with several companies which provide Kodak with products and services to be used in its normal operations. The minimum payments for these agreements are approximately $198 million in 2001, $148 million in 2002, $128 million in 2003, $113 million in 2004, $79 million in 2005, and $201 million in 2006 and thereafter.

The Company has also guaranteed debt and other obligations under agreements with certain affiliated companies and customers. At December 31, 2000, these guarantees totaled approximately $250 million. The Company does not expect that these guarantees will have a material impact on the Company’s future financial position or results of operations.

At December 31, 2000, the Company had outstanding letters of credit totaling $54 million to ensure the completion of environmental remediations and payment of possible casualty and Workers’ Compensation claims.

Rental expense, net of minor sublease income, amounted to $155 million in 2000, $142 million in 1999 and $149 million in 1998. The approximate amounts of noncancelable lease commitments with terms of more than one year, principally for the rental of real property, reduced by minor sublease income, are $104 million in 2001, $78 million in 2002, $65 million in 2003, $33 million in 2004, $24 million in 2005, and $47 million in 2006 and thereafter.

The Company and its subsidiary companies are involved in lawsuits, claims, investigations and proceedings, including product liability, commercial, environmental, and health and safety matters, which are being handled and defended in the ordinary course of business. There are no such matters pending that the Company and its General Counsel expect to be material in relation to the Company’s business, financial position or results of operations.