Kodak Finalizes Tender Offer

Eastman Kodak Company (EK) announced the expiration and final results of its tender offer to purchase up to $200 million of its outstanding 7.25% Senior Notes due 2013. The tender offer was made pursuant to an offer to purchase on February 3, 2010. The tender offer expired on March 9, 2010.

Holders of 2013 notes who validly tendered their 2013 Notes will receive $950 per $1,000 principal amount of 2013 notes accepted in the tender offer. Holders of 2013 Notes who validly tender their 2013 notes after the early tender date and at or before the expiration date will be eligible to receive $910 per $1,000 principal amount of 2013 notes accepted.

Recently, Kodak completed the private placement of $500 million in senior secured notes due 2018 and the repurchase of notes from private equity firm, Kohlberg Kravis & Roberts. Kodak intends to fund the repurchase of the 2013 notes in the tender offer from the net proceeds of the private placement and, to the extent necessary, cash on hand.

Kodak has a strong balance sheet with net cash of $833 million at the end of December 2009. Moreover, the company has announced plans to implement a targeted cost reduction program (the 2009 Program) to resize itself in view of the current economic environment. The program, along with new product launches and numerous expansion programs will enable the company to grow despite the difficult environment.

However, Kodak operates in a highly competitive market, and encounters aggressive price competition for all of its products and services from numerous companies globally. Based on its international distribution, Kodak is subject to foreign currency risks, changes in interest rates and commodities costs, which are volatile in nature.

As part of the business strategy, Kodak frequently engages in discussions with third parties regarding possible investments, acquisitions, strategic alliances, joint ventures, divestitures and outsourcing. The company may face integration and other risks related to these transactions, which in turn will have a material adverse impact on its profitability.