Kodak Professional's bid for leadership in new technologies is perhaps best exemplified by the introduction of the DCS Pro Back digital camera, incorporating the world’s first 16-16-megapixel sensor. This represented a truly prestigious achievement for Kodak, as no one else has ever introduced a digital camera that can deliver even half the image resolution of this device.

As the entertainment industry moves towards an increasingly digital future, Entertainment Imaging is successfully driving film, hybrid, and digital strategies to provide leadership in the transition.

In 2000, a healthy worldwide box office contributed to record-setting print film sales and very strong demand for color negatives. And, once again, all Academy Award-nominated movies in Best Picture, Best Cinematography, and virtually all other major categories were produced on Kodak motion picture film.

Cinesite (Entertainment Imaging’s digital services unit) provided scanning, recording, and special effects for a record number of high-profile movies. Cinesite also created the first end-to-end Kodak Digital Intermediate of a major motion picture ("O Brother, Where Art Thou?"), introducing an innovative digital process that extends the creativity of filmmakers and provides a high-quality bridge to digital display.

Work is now in progress on a digital cinema infrastructure, combining Kodak technology with components from others, to create a system with on-screen picture quality that surpasses anything else available.

Kodak’s Document Imaging division continues to be a strong competitor in the business and government markets it serves.

For example, since entering the color scanning business in 1998, Kodak’s market share has rocketed from 10% to more than 50% today. Our high-speed production scanning equipment played a pivotal role in the recent U.S. census, processing more than 2 million forms per day. Kodak scanners are now participating in more than 20 other census counts worldwide, including the census for the United Kingdom, France, Australia and Brazil.

Kodak Digital Preservation Service will be a major contributor to the division’s future growth. Industry experts estimate this will be a $7 billion category by the year 2004. At present, the United States Social Security Administration is preserving its critical digital and paper documents with Kodak systems, as are many banks and insurance companies.