To Shareholders:
Continual improvement in the health, safety and environmental aspects of our products, services and operations is a guiding principle at Kodak. We understand and embrace the importance of benchmarking best practices, setting goals, measuring our efforts, and sharing the results with our many publics.

The year 2001 included:

• Two important milestones that illustrate continued progress on Health, Safety and Environment (HSE) initiatives.
• Strong Kodak partnerships and support for environmental organizations that reaffirm our commitment to education and outreach.
• A number of significant awards that give further testimony to the hard work and achievements of Kodak people around the world.

We offer a few examples of these milestones, partnerships and awards in this written report, and we invite shareowners to learn more about Kodak’s efforts in the Health, Safety and Environment arena by visiting www.kodak.com/go/hse.

Milestones
While measurable improvement against tough, voluntary corporate environmental goals has been an important trend for Kodak in recent years, progress for 2001 was further defined by two important milestones:

1. the number of Kodak one-time-use cameras that have been recycled reached the half-billion mark; and
2. the number of Kodak manufacturing facilities that have attained International Standards Organization (ISO) 14001 registration reached 100 percent.

Kodak recycled 127.7 million one-time-use cameras in 2001, pushing the total recycled well past the 500-million mark. Return rates for Kodak one-time-use cameras is about 70 percent worldwide, with nearly 80 percent return in the United States. These efforts helped earn a “Partner of the Year” award from the U.S. Environmental Protection Agency (see “Awards”).

ISO 14001 registration is the recognized, global benchmark for operating a manufacturing facility with proper attention to environmental responsibility. Three years ago, Kodak vowed to attain such registration for all of our major, worldwide manufacturing facilities—and to do so within five years. With the successful registration in 2001 of two facilities in China, one in Japan and another in India, all 27 of Kodak’s manufacturing sites are now ISO 14001 registered.