Our professional product offerings returned to basics with the move of graphics and wide-format inkjet to Commercial Imaging. Our professional products include both traditional and digital solutions and services to professional photographers and labs. Products recently introduced include Kodak Portra sepia black-and-white paper, color metallic paper and day/night display materials offering exciting output choices, and the Kodak Professional DCS 760 digital camera and the DCS pro back plus.

Our products and services offered to the entertainment industry turned in a good performance despite a very challenging year. The threat of strikes in the entertainment industry pulled most production schedules into the first half of the year, creating a slower second half. In addition, film sales for television commercials were impacted as advertisers reduced their spend due to the economy and the aftermath of September 11th.

Health Imaging In Health Imaging, sales of traditional products declined, while the corresponding growth in digital products and services slowed somewhat due to the economy. However, Kodak increased its market share in both traditional analog x-ray media and digital output for diagnostic medical imaging. Sales of digital capture and PACS (picture archiving and communications systems) products and DryView media continued to grow at double-digit rates.

Commercial Imaging Growth in document imaging-related products and services sales benefited from the Bell & Howell acquisition and from increased sales of document scanners. Over the past five years, we have become the market leader in document scanning and preservation, building on our heritage in microfilm. Our new iNnovation series scanners are bundled with application software for document management, text recognition and photo management and have earned many industry awards.

Specialized imaging products and solutions for commercial and government customers continue to generate strong sales growth. The operations are exploring new business opportunities across a broad range of image management applications in real estate, government, insurance, telecommunications, transportation, mineral exploration and other industries.

In the graphics product offerings, our Kodak Polychrome Graphics joint venture contributed to positive earnings and expanded its growth opportunities by acquiring the color proofing and software businesses of Imation Corp. A joint venture between Kodak and Heidelberg achieved a key milestone with the successful launch of the NexPress 2100 printer, a digital short-run production color press that sets new industry standards for reliability, image quality and print consistency.