KODAK AND PHILIPS ANNOUNCE LICENSING FOR MASS PRODUCTION OF PRERECORDED
PHOTO CD DISCS

SAN JOSE, Calif., Mar. 30,1993--In response to growing customer demand,
Eastman Kodak Company and Philips announced today that a licensing program
to allow mass replication of prerecorded Photo CD discs will soon be
available.

In order to manufacture prerecorded Photo CD discs, disc manufacturers will
need to obtain licenses from both Kodak and Philips.

Currently, the only way to produce a Photo CD disc is through a
photofinisher or service bureau that uses a Kodak Photo CD Imaging
Workstation. Photo CD Imaging Workstations produce custom Photo CD discs
individually, or in small quantities, from photographic negatives and
transparencies.

"We have been besieged by requests from publishers who want to mass produce
their own Photo CD titles," explained Fred Geyer, general manager, CD
Imaging, at Kodak. "These have included photographers, who want to
distribute their stock photos on disc; merchants, who are considering
putting catalogs on disc; and publishers of entertainment and educational
software, who want to use Photo CD players as home entertainment and
educational platforms.

"A very successful example of a mass produced Photo CD disc is the title
From Alice to Ocean, by Rick Smolan," Geyer said. "We produced this disc
for inclusion in Rick Smolan's book of the same title as a demonstration
of the communications power of our Photo CD Portfolio format."

"We believe this is a very positive move that will enable the industry to
adopt Photo CD as the standard for professional electronic publishing
applications," added John Hawkins, general manager, Philips Interactive
Media.

Replicating Photo CD Discs

Kodak and Philips will cooperate in a licensing program that makes it
possible for publishers to produce and distribute discs in larger
quantities using the Photo CD format. Under the licensing arrangement,
those wishing to publish a Photo CD title will take their Photo CD discs
to a CD-audio or CD-ROM disc manufacturer. The disc manufacturers will
mass produce the contents of the Photo CD disc in a manner similar to the
way they mass produce audio CDs and CD-ROM discs today.

The starting point for mass production can be one of three Kodak Photo CD
disc formats--Photo CD Master, Pro Photo CD Master, or Photo CD Portfolio.
In addition, discs produced in a CD-I authoring studio, or in a Photo
CD-enabled desktop imaging system, may be mass produced. The publisher
will take the original Photo CD disc to an authorized manufacturer to have
it manufactured from the gold-colored Photo CD original.

To produce Photo CD discs in quantity, manufacturers will employ techniques
similar to the ones they use for CD-ROM and audio compact discs. In this
process, a laser records a continuous stream of data onto a glass plate
with a recordable coating. The glass is then used to make a nickel
stamper. The stamper is placed in an injection molding machine, which
physically molds a newly-formed disc with the encoded data. Production
costs for this process make it practical for applications that require
hundreds or thousands of discs.

Kodak and Philips plan to initiate the licensing program for Photo CD discs
late this spring.

Eastman Kodak Company, 343 State St, Rochester, NY 14650

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