By incorporating Kodak's image science and system integration expertise with Motorola iconic mobile device design, the two companies will greatly improve the ease-of-use and image capture experience of camera phones. The collaboration covers licensing, sourcing, software integration, marketing, and extends to co-development of image-rich devices with joint engineering teams. For example, Kodak expects to supply its CMOS sensors to Motorola for use in its camera phones, as well as in any future devices the companies co-develop. Additionally, the cooperation to seamlessly integrate millions of Motorola mobile devices with Kodak home printers, retail kiosks, and the KODAK EASYSHARE Gallery will finally provide an answer to those consumers who desire a quick and easy way to get their images out of the phone for sharing with friends and family.

“It's a natural partnership,” said Ed Zander, Chairman and Chief Executive Officer of Motorola. “With Kodak, the global leader in imaging innovation, and Motorola, the global leader in mobile design and innovation, we'll forever change the way the world captures and shares mobile images. And by cooperating to simplify and enhance the quality of virtually every aspect of the development and delivery of the mobile imaging experience, we'll be able to bring new value and revenue opportunities to our operator customers while helping consumers by seamlessly liberating billions of photos stuck inside camera phones.”

“Our companies will combine our knowledge and technological expertise to provide a mobile-imaging experience the way the consumer wants it,” said Antonio M. Perez, Chairman and Chief Executive Officer of Kodak. “Motorola is the innovator in mobile devices; Kodak is the digital imaging innovator that has allowed people to easily make, manage and move pictures. Working in collaboration, our two companies have the capability and commitment to totally redefine photography in a connected world. Together, we will pursue our vision of a world where every consumer has a networked imaging device in her pocket or purse by the end of the decade.”
The alliance delivers value by leveraging each company's intellectual property, particularly Kodak's patents covering digital imaging and Motorola's patents for wireless communications.

Motorola has always been at the forefront of mobile imaging with the global launch of the “must have” Triplets during the fourth quarter of 2003 and the subsequent integration of cameras into its award-winning RAZR, PEBL and SLVR phones worldwide. The fusion of voice communication with picture imaging communication into the device that is 'always with you,' has transformed the wireless communications industry.

Capturing moments was relatively easy for the wireless industry – but sharing and printing those moments and turning them into revenue streams for wireless operators has proved to be a bigger challenge. Through this alliance, Kodak and Motorola will develop the answer – and they've joined forces in an aggressive and global collaboration to bring this to market.

As Motorola contributes its knowledge of mobile devices and networks, Kodak will contribute its knowledge of the consumer's imaging behavior. Kodak is at the leading edge of connected imaging with the world's first wireless digital camera, the award winning EASYSHARE-One. Because the companies will have access to each other's technology, consumers can look forward to a more connected world, to a time when the ability to capture an image will always be available, when networks will exist to allow people to share images electronically through any number of devices, from camera phones to picture frames to products that have not yet been invented.

What's more, the advent of simple and seamless mobile imaging will redefine the camera while enhancing existing segments of the imaging market. Consumers, for example, will be able to more easily generate prints from KODAK kiosks and share memories from the KODAK EASYSHARE Gallery with wireless devices that are designed from the ground up with imaging in mind.

Under the alliance, Motorola and Kodak plan to initially expand access to and awareness of mobile-imaging services – including retail programs, online services and customized operator-led initiatives that deliver a seamless, easy experience for consumers. During 2006, Motorola plans to launch handsets with integrated software to enrich the KODAK EASYSHARE experience, enabling consumers to access and manage their mobile images seamlessly and conveniently. In the years to come, Motorola and Kodak plan to deliver new and unique imaging experiences via the collaboration of Motorola and Kodak engineering teams, and the development of new co-created mobile devices.

This cross-licensing agreement between Kodak and Motorola delivers royalty revenues to Kodak. In keeping with both company's policies regarding royalty agreements, financial and other details will not be disclosed.