EASTMAN KODAK

              Company Highlights and Investment Profile

                             7/16/93


   There is increasing evidence that Mr. Kay R. Whitmore, Kodak's
   Chairman and Chief Executive Officer, is determined to improve
   Eastman Kodak's profitability reduce debt and refocus the
   company's business portfolio.   In early June, Kodak announced
   plans to spin-off its Eastman Chemical Company subsidiary to
   shareholders by January 1994.  This move follows comments by Mr.
   Whitmore at Kodak's annual meeting in May which indicated a
   portfolio review was underway.

   At the annual meeting, Mr. Whitmore also indicated the other
   elements of the turnaround plan would be discussed in a late
   September meeting with investors.  Of these, a reduction in
   selling, administrative, distribution and advertising expense
   (SADA) is probably the most important.  Each 100 basis point
   decline in SADA would contribute $0.35- $0.40 per share aftertax.
   In 1992, SADA represented 29.1% of sales versus a more
   appropriate level, in our opinion of 25.0%.  A four hundred basis
   point decline in SADA would boost earnings by $1.40-$1.60 per
   share.

   Kodak has an excellent core film business which dominates the
   U.S. market and remains the market leader worldwide. Although
   future film unit growth will be somewhat slower than the
   historical rate of 5% (perhaps 2%-4%), cost cutting and price
   increases should permit imaging earnings (an estimated 51% of
   1992 operating earnings) to grow at a 10%- 12% rate over the next
   several years. The risk from electronic imaging or the filmless
   camera has been reduced significantly with the introduction of
   Kodak's Photo CD in mid-1992.

   Until Kodak's earnings momentum is reestablished, the dividend is
   unlikely to be raised. The current $2.00 dividend represents a
   payout ratio of   54.0% based on our 1993 estimate of $3.70. A
   strong earnings gain next year could prompt a modest (5%)
   increase in the dividend. Despite this subdued outlook for the
   dividend, the stock's current yield of 3.9% exceeds the S&P 500's
   yield of 2.7% by a wide margin.

   RISKS

   The major risk associated with Kodak could be a misjudgment on
   concerning the intensity of Mr. Whitmore's effort to improve
   profitability.

              7/23/93 52-Wk-Rng FY/Q  EPS92  EPS93 PE93 NxtQtr LyQtr
Eastman Kodak   51.50   56-39   12/2   3.26   3.80 13.8   1.20  1.11