Our Digital and Applied Imaging division continues to find new ways to make digital photography easy, seamless and more accessible for people.

And there’s no doubt about it, digital photography has caught fire with consumers. Last year, Kodak’s sales of digital cameras leaped 80%. In addition to marketing our own branded products, Kodak is a major supplier of CCD and CMOS sensing devices—the heart of a digital camera—to other manufacturers. In fact, 25% of all the high-resolution CCDs in use today are from Kodak.

Last year, we introduced the Kodak DC4800 digital camera to rave reviews. The camera combines supercrisp 3.1 megapixel resolution with ease of use and full creative control for the serious photographer.

Our inkjet paper and media business saw a 31% increase in revenues in 2000, with quality products such as the new Kodak Ultima Picture Papers for prints that retain their original brilliance for 20–30 years. Kodak was once again cited by a recent Lyra Research study as the inkjet photo paper brand consumers most widely prefer.

In our Health Imaging business, 45 new products were launched in 2000, providing solutions in every link of the medical imaging and information chain.

Approximately 50% of this division’s sales now come from digital products, such as Kodak’s computed radiography and digital radiography systems. In 2000, a milestone was achieved with the sale of our 10,000th Kodak DryView Laser Imager, with a nearly 70% increase in placements for the year. Looking ahead, we just signed an agreement with Novation, the nation’s largest healthcare purchasing organization, to provide an estimated $1.4 billion in laser imagers and medical film products over the next five years.

In another exciting development, our Health Imaging division is partnering with Intel and Cedars-Sinai Medical Center to pilot an Application Service Provider model for the medical imaging business. Cedars-Sinai will transmit images—captured and managed via Kodak digital systems—to an Intel Online Services data center. The images will be available to physicians via the Internet and billed on a fee-per-use basis.

For our Kodak Professional division, the past two years have been marked by numerous business challenges and accelerating technology transition.

However, with a newly organized unit pursuing new growth areas—and last year’s successful restructuring of the Kodak Polychrome Graphics joint venture—we believe the business will regain momentum as the economy picks up.

Kodak Professional introduced several breakthrough products in 2000. The NexPress 2100 digital color printer, developed in a joint venture with Heidelberg, can serve as an extension of a company’s web site or customer call center, creating individually customized marketing materials. Names, pictures, text and other variables can be changed "on the fly" as customer requests are received online.