SERVING DIVERSE CUSTOMER MARKETS

Corporate Business Research carefully explores multicultural market opportunities to identify differences in imaging patterns across different ethnic markets, cultures and social segments. We carefully analyze these markets, using both quantitative methods to understand their habits and practices, as well as ethnographic and anthropological methods to get a deep understanding of the different assumptions and beliefs about imaging among these constituencies. This helps us develop and refine our products and services to better meet the needs of these markets, and to promote these products and services in our marketing communications. In addition, we use market tracking methods so we understand, over time, how well we are succeeding in these markets.

Kodak's Multicultural Marketing efforts helped develop advertising and promotional activities to reach out to diverse customers.

KODAK IS COMMITTED TO ITS COMMUNITIES

Kodak's global contributions and community relations program builds relationships and implements initiatives directed at community and customer needs and interests in support of Company goals. It provides support to address strategic social issues, community involvement and commitment to diversity. As such, programs and initiatives are focused on partnerships, volunteerism and grants in diverse markets.

In 2003, 23% of Kodak's corporate funding was directed to programs that benefit diverse constituents. An additional 18% was directed to United Way affiliates in the United States to serve their diverse clients. Among the diverse organizations Kodak proudly supports are: American Indian Science and Engineering Society, GLSEN (Gay/Lesbian/Straight Education Network), Hispanic Association of Colleges and Universities, Hispanic Federation, Ibero-American Action League, National Association for the Advancement of Colored People (NAACP), National Council of La Raza, National Organization on Disability, National Urban League, Sociedade Holistica Humanitaria, Society of Women Engineers and Susan G. Komen Breast Cancer Foundation (Italy, Germany).

SUPPLIER DIVERSITY

Kodak continues to take aggressive steps to identify and partner with diverse suppliers. In addition to supporting, sponsoring, and participating in many external events, Kodak successfully hosted two internal Supplier Diversity events in 2003: Supplier Alliance for Diversity and Power of Diversity: Matchmaker.

In 2003, Kodak increased its percentage spend with Minority Business Enterprises (MBE) by more than 90% and with Women Business Enterprises (WBE) by more than 65% over the previous year's levels:

SUPPLIER DIVERSITY SPENDING

EXTERNAL RECOGNITION

As in previous years, Kodak's diversity journey was recognized by many external organizations in 2003. For example:

• Kodak Chairman and CEO Daniel A. Carp received one of ten U.S. CEO Diversity Leadership Awards from Diversity Best Practices/Business Womens' Network, a workplace diversity resource organization.
• DiversityInc.com recently ranked Kodak as #9 in their list of Top 10 Companies for Supplier Diversity, and #8 in their list of Top 50 Companies for Diversity overall.
• Kodak President and Chief Operating Officer Antonio M. Perez was pro-filed in a cover article in DiversityInc. magazine. Perez and Chief Quality Officer Stevan G. Ramirez, a Kodak vice president, were named to Hispanic Business magazine's list of 100 Influentials.
• Kodak was named among Best Corporate Citizens by Business Ethics magazine.
• Fortune ranked Kodak among the 50 Best Companies for Minorities.
• For the third consecutive year, the Human Rights Campaign gave Kodak a perfect score on its Corporate Equality Index because of policies that support gay employees.
• Working Mother magazine named Kodak among the 100 Best Companies for Working Mothers for the 14th consecutive year.

In addition, Kodak's Resolution Support Services (RSS) program was profiled in the Washington Post and The Wall Street Journal. The RSS program enables employees to have concerns reviewed by a panel of peers or a single adjudicator.