PHOTO CD PRODUCTS AND FEATURES

Sharing Special Moments, and More: The Kodak Photo CD System Continues to
Expand

December 1993 -- In 1990, Kodak announced a product that today is beginning
to revolutionize the worlds of consumer photography and desktop computer
imaging.

Launched on schedule in the summer of 1992, the Kodak Photo CD system
enables photographers to take standard 35 mm pictures and have them
scanned onto special compact discs at a photofinisher or service bureau.

With the discs, consumers can view their pictures on television using a
Photo CD, Apple PowerCD, 3DO/Panasonic R.E.A.L., or CD-I player (all of
which also play audio CDs). Perhaps even more significant, Photo CD discs
give commercial and consumer users (running CD-ROM-equipped computers) the
ability to work with high-resolution images easily and inexpensively.

Because Kodak developed Photo CD technology to meet the needs of its
consumer and commercial customers, both audiences benefit from:

* Affordability. Mass production of Photo CD media leads to lower prices
for all users.

* Cross-platform accessibility. Using an inexpensive CD-ROM drive in
combination with Photo CD-enabled software, virtually all computers read
the Photo CD discs; and users can view the same discs on TV with an
inexpensive home player.

In essence, the Kodak Photo CD system gives both consumers and commercial
customers the best of two technologies. It provides the convenience, low
cost, and image quality of traditional photography. Then it adds the
benefits of digital technology--the ability to display, enhance, and
transmit images electronically.

What follows is a Photo CD compendium--a list with some discussion of the
various technologies comprising the complete Kodak Photo CD system,
including media, software, players, and authoring systems. It also
describes the Kodak Writable CD system, a direct outgrowth of Photo CD
technology. 

Photo CD Disc Formats

Kodak has applied the core technology of its Kodak Photo CD system to a
variety of disc formats for specialized applications. Any disc carrying
the Photo CD logo, including mass-replicated discs made by licensed
manufacturers, can be played on a Photo CD player (or any of the
compatible players listed above), and on compatible CD-ROM XA drives
(using a computer equipped with the appropriate software).

* Kodak Photo CD Master Disc (available now). 

Designed for 35mm consumer photography, the original Kodak Photo CD Master
Disc can hold about 100 high-resolution images, or four 24-exposure rolls
of film. The images are stored using the PhotoYCC color encoding metric,
developed by Kodak, which stores data at multiple levels of resolution in
units called Image Pac files. A Photo CD Master disc stores images at five
levels of resolution:

2048 x 3072    pixels    (Base*16)
1024 x 1536    pixels    (Base*4) = HDTV
512  x 768     pixels    (Base) = TV
256  x 384     pixels    (Base/4)  = Thumbnail
128  x 192     pixels    (Base/16) = Thumbnail

The highest resolution is 16 times as great as today's TV standards, and
four times the standards currently being considered for HDTV. The Kodak
Photo CD Master Disc also can function as a "digital negative," which
means consumers can take the disc to a photofinisher to have prints made.

* Kodak Pro Photo CD Master Disc (available now). 

Professional photographers use the Kodak Pro Photo CD Master Disc. These
discs store images from the larger film formats favored by professionals,
including 120, 70 mm, and 4 x 5-inch, as well as 35 mm. Depending on the
film format, the discs can hold from 25 to 100 images. The Pro disc adds a
sixth, higher level of resolution 4096 x 6144 pixels (Base*64)--to the
resolutions stored on a Photo CD Master disc.

* Kodak Photo CD Portfolio Disc (available now). 

The Photo CD Portfolio disc format lets desktop computer users create their
own Photo CD discs with combinations of photographic images, stereo audio,
graphics, text, and programmed (also called "branching") access. 

People can create their own interactive sound-and-picture presentations on
Photo CD Portfolio discs for playback on TV or computers. Along with
traditional CD-ROM publishing applications, the discs are being used for
business presentations, informational kiosks, trade show displays and
educational programs. 

Image professionals are using the format to publish custom Photo CD discs
with copied or edited Photo CD images, as well as with images stored in
other formats (such as TIFF and PICT). 

Because the highest Photo CD resolutions are not required on this format,
users have more space available for other content, such as audio and
graphics. When high-resolution images are required, users can keep all
resolutions of the original Photo CD Image Pac file on Photo CD Portfolio
discs.
Photo CD Fact Sheet/page 4

* Kodak Photo CD Catalog Disc (available in 1994). 

The Kodak Photo CD Catalog Disc format is designed for organizations that
want to store large numbers of images on a disc and distribute these
images widely--such as mail-order retailers, tourism associations, or art
galleries. As many as 4,400 images will be able to be stored at video
resolution on Kodak Photo CD Catalog Discs for soft display on TV sets or
computer monitors. Images on Kodak Photo CD Catalog discs will be of lower
resolution than standard Kodak Photo CD Master Discs or Kodak Pro Photo CD
Master Discs and won't be able to be used to make photo-quality prints.
Every Photo CD Catalog Disc will contain Kodak Browser image search and
retrieval software.

* Kodak Print Photo CD Disc (available in 1994). 

The Kodak Print Photo CD Disc format is designed to combine the strengths
of the company's other CD formats with additional capabilities designed
specifically for the printing and publishing industry. Print Photo CD
discs will have the ability to store images in the
cyan-magenta-yellow-black (CMYK) color scheme that predominates in the
graphics industry. Because Kodak is working with major manufacturers of
color electronics prepress systems (CEPS) to develop it, the Print Photo
CD disc will represent the first medium that allows graphics files to be
shared among CEPS made by different companies. Print Photo CD discs also
will accept CEPS images stored as Image Pac files and will store
vendor-specific data files used in print production.

Smaller Discs Are Coming

All the disc formats listed above are available, or soon will be available,
in the original, 120 mm format, which is the same size as today's
album-length audio CDs. Kodak also has announced plans to offer new, 80 mm
Photo CD discs, which will be the size of audio "CD singles."

Kodak designed the smaller discs to be compatible with the 80 mm CD-ROM
drives likely to be found in future laptops, notebooks, and personal
digital assistants (PDAs). The discs also will be playable on nearly all
existing Photo CD-compatible devices, including 120 mm CD-ROM drives,
Photo CD players, and CD-I players.

Any Photo CD information that can be written to a 120 mm disc will be able
to be written to an 80 mm disc, but in a smaller quantity. The 80 mm Photo
CD discs will have one-third the data-carrying capacity of their 120 mm
cousins.

Photo CD Players

Consumers display their pictures by inserting their discs into a Photo CD
player that they operate with a simple remote control. Viewers can select
specific images, program them to appear in a particular order, rotate an
image, or (with most players) zoom in on part of it for a close-up.

Kodak offers three Photo CD player models, each of which has high-end audio
capability and unique picture-viewing features. Kodak Photo CD players are
available worldwide, and different versions are compatible with NTSC and
PAL television standards.

* The deluxe PCD 870 player offers a variety of more advanced viewing
options. Users can view close-ups of their images by selecting a
rectangular portion for magnification with the "2X tele" feature. Another
feature, "expanded favorite picture selection," provides additional memory
for recalling the individual picture edits and viewing order selections of
more discs. (Available now; manufacturer's suggested retail price: $249.)

* The PCD 5870 offers all the advanced features of the deluxe version, with
the addition of a five-disc carousel. This player also provides on-screen
display of the selected image number and other information for easy
indexing and fast photo identification. (Available now; manufacturer's
suggested retail price: $449.)

* The PCD 970 is a portable player--roughly the same size and weight as a
VHS videocassette--that provides most of the advanced viewing features
found in Kodak's deluxe console players, including a full-function remote
control. In seconds, users can connect the PCD 970 to any standard
television to play Photo CD discs. It comes with stereo headphones, a
range of video connection options, and can be powered from a standard wall
outlet or using four AA batteries.

Photo CD Authoring Systems and Software

Before Kodak could offer Photo CD technology to consumers, it had to
develop an authoring system that would allow photofinishers to quickly and
cost-effectively produce Photo CD discs. The Kodak Photo CD Imaging
Workstation (PIW) 2200, the original system used by photofinishers,
included a Kodak scanner, data manager (workstation), disc writer, thermal
printer, and software. Today, Kodak offers two additional PIW models.

* The Kodak PIW 2400 Workstation processes consumer and commercial Photo CD
orders. It includes the Kodak scanner, data manager, printer, two PCD
writers, an Auto Gate attachment, and upgraded software. Productivity with
the Auto Gate attachment is over three times that of the PIW 2200. that
gives it over three times the productivity of the PIW 2200. An auto gate
accessory allows complete rolls of film to be scanned automatically,
instead of manually advancing each frame.

* The Kodak Professional PIW 4200 processes orders from professional
photographers or consumers. It scans from 35 mm up to 4 x 5 inch
professional films, with features that answer professional photographers'
unique needs, such as the ability to emulate the "look" professionals
achieve by choosing different films. The PIW 4200 includes the Kodak
Professional PCD film scanner 4045, for professional-quality image
scanning.

* A third PIW, the Kodak PCD Imaging Workstation 6600, will let
photofinishers scan up to 50 rolls of 35 mm color negative film at a time
onto individual Photo CD discs, without the need for operator
intervention. Cut negatives also can be transferred using a laminator. The
PIW 6600 will employ a reel-to-reel scanning system, an automated disc
loading device and the Kodak CRT Digital Color Printer that generates
index prints on lower-cost color silver halide paper at higher speed. The
PIW 6600 is expected to be available early this year.

Creation of Photo CD Portfolio Discs

To enable creation of Photo CD portfolio discs, Kodak offers three software
packages.

* Kodak Create-It Photo CD presentation software lets desktop computer
users create presentations with simple interactive menu choices and
virtually unlimited options for designing individual frames.

* Kodak Arrange-It Photo CD Portfolio layout software lets users design
more advanced multimedia programs with sophisticated disc layouts. Users
can import images and frame designs from Create-It or from other
applications, such as Adobe Photoshop.

* Both Create-It and Arrange-It output a script language used by an
authoring package, called Build-It, which structures the images, text,
sound clips and other content onto a Photo CD Portfolio disc. To enable
users of other software packages to create Photo CD Portfolio
presentations, Kodak will publish the script language and offer it to
software developers free of charge.

Software for Working with Photo CD Images

To accommodate a wide range of desktop applications, Kodak developed a
family of software products designed for all types of users.

Kodak Browser Photo CD Catalog Software and the Kodak Shoebox Photo CD
Image Manager provide easy search and retrieval of images stored in
databases; the others allow users to work with individual Photo CD images
in different ways.

All the Kodak software packages are designed to have the same intuitive
feel, with easily identifiable icons and convenient pull-down menus. Kodak
software also provides an easy transition between simple and more advanced
functions.

KODAK Professional Image Library and KODAK Picture Exchange

Besides these software packages, Kodak today is offering an automated disc
library, or "jukebox," that holds as many as 100 Photo CD discs. The Kodak
Professional Image Library 30 can store thousands or hundreds of thousands
of images, depending on the types of discs it contains.

In addition to Photo CD images, the library allows search and retrieval of
TIFF, PICT, EPS, PCX and BMP images, along with QuickTime movie clips and
audio files. This makes it ideal for users who produce multimedia programs
and other image-intensive projects.

Along with the library, Kodak has launched an on-line marketing service
that uses regular telephone lines to link providers of images to image
users worldwide. This service is called the Kodak Picture Exchange.

The Kodak Picture Exchange gives users--such as advertising agencies,
graphic designers, and photo researchers--access to vast collections of
images from more than a dozen image providers, just as networks such as
CompuServe provide access to text and data.

With a Macintosh or Windows platform and a modem, users can quickly search
the Kodak Picture Exchange database and download images electronically. As
users order images, the Kodak Picture Exchange notifies the image
providers electronically, allowing them to fulfill original film requests
promptly by messenger or overnight service. (Image providers will continue
to negotiate their own terms.) 

KODAK Writable CD System

The research that made it possible to produce photographic compact discs
economically for consumers has made low-volume commercial production of
data CDs viable as well.

The Kodak Writable CD system is a complete compact disc publishing system
that allows users to master CD-ROM discs from their desktop computers. All
standard hardware devices, including CD-ROM, CD-ROM XA, CD-I, and CD audio
players can read properly authored writable CDs. With a suggested retail
price of about $25 for each disc, the media provide a cost-effective
alternative to other types of removable computer storage.

The discs hold the rough equivalent of 240,000 pages of ASCII text, 550
floppy discs, or three reels of nine-track tape--all on a single,
individually published medium, and all digitally accessible, at a cost of
less than four cents per megabyte.

The Kodak Writable CD system includes a number of components, all of which
are available today:

* The Kodak PCD Writer 200 and Kodak PCD LAN Writer 200 write and read data
to and from discs at twice the speed of conventional CD writers.

* Kodak Writable CD media with the lnfoGuard Protection System is a
write-once medium that can be read in standard CD hardware devices. The
InfoGuard Protection System offers a carefully selected dye chemistry that
resists fading from light, heat, and humidity; a protective coating that
prevents scratches, dirt, rough handling, or other common mishaps from
damaging the disc's readability; and a unique identification
number--printed in human readable form along with a corresponding
machine-readable bar code--that provides tracking, indexing, and security
advantage. Kodak Writable CD media is available in 63-minute
(580-megabyte) and 74-minute (680-megabyte) capacities.

* Kodak CD publishing software allows users to publish data to Writable CDs
with a point-and-click of the mouse, as easily as they might copy files to
a floppy disc today. Kodak software is now available to users in DOS and
Windows environments; Macintosh computers and Sun/UNIX versions are
expected to be available early this year. (In the interim, Kodak is
offering third-party software to enable Macintosh computer users to
publish Writable CDs.)

Kodak media and disc writers both support multisession recording. This
means users can add data to a disc in different recording sessions. Kodak
said it plans to offer multisession authoring software later this year.

In addition to products already on the market, the company has announced,
for delivery later this year, the Kodak Writable CD Production station,
which will provide automated recording of as many as 75 discs.

The station will consist of four components:

* The Kodak PCD Writer 600, the world's fastest CD writer/reader, which can
write a full, 63-minute CD in about 10 minutes.

* The Kodak Disc Transporter, which automatically inserts and removes
writable CD media from the PCD Writer 600.

* Kodak Writable CD Publishing Software, to provide the system control and
batch programmability.

* Kodak Writable CD media with the InfoGuard Protection System.

All Kodak Writable CD products are designed to offer customers the most
productive and convenient system available for low-volume CD publishing,
with the added benefit of one-stop shopping from a single vendor. The
system is completely open, however--Kodak media are compatible with disc
writers from other manufacturers, and both the Kodak PCD Writer 200 and
PCD Writer 600 work with other media.

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