ROCHESTER, N.Y. -- Eastman Kodak Company's (NYSE: EK) Health Group has signed an agreement with Novation that makes its innovative KODAK CARESTREAM PACS available to nearly 2,500 alliance members and facilities.

Kodak's proven PACS (picture archiving and communications system) and storage management solutions are successfully deployed at hundreds of healthcare facilities around the world. Its comprehensive portfolio of image and information management solutions includes its advanced CARESTREAM RIS-PACS suite, along with CARESTREAM Information Management Solutions that deliver efficient, enterprise-wide management and storage of clinical and non-clinical data and images.

Under a new three-year contract, Novation will offer the Kodak PACS to hospitals, out-patient imaging centers and other healthcare providers across the U.S. The agreement is effective May 1, 2007 and ends April 30, 2010-with two one-year extension options.
"The Health Group is a trusted and proven resource for healthcare IT systems," said David Starr, Product Manager, Novation. "Thanks to this new agreement, Kodak's PACS offering provides a powerful digital information solution to VHA, UHC and HPPI members."

In addition to this PACS contract, Kodak has agreements with Novation to provide CR and DR systems, radiographic films, laser media, laser imaging systems and services. "Novation has been an important business partner to Kodak for many years," said Connie Pettijohn, Vice President of Corporate Sales, Kodak's Health Group. "This contract enables us to provide the most up-to-date versions of PACS solutions in the marketplace to help Novation alliance members achieve valuable operating and information management efficiencies."

Novation is the largest group purchasing organization in the U.S. serving members of VHA, University HealthSystem Consortium (UHC) and HPPI in all 50 states.

About Kodak's Health Group

Kodak's Health Group, with 2006 revenues of almost $2.5 billion, is a world leader in advanced imaging products, services and IT solutions for the medical and dental professions; molecular imaging systems for the life science research and drug discovery/development market segments; and x-ray film and digital x-ray products for the non-destructive testing market.

Kodak recently entered into an agreement to sell the Health Group to a subsidiary of Onex Corporation, Toronto, Canada. With consolidated revenues of almost $20 billion, Onex, which owns companies in a range of industries, has a significant and rapidly growing group of healthcare companies. Subject to regulatory and other approvals, it is anticipated that the sale will close in the first half of 2007. At that time, the Health Group will become a standalone company that will operate as Carestream Health, Inc.

For more information about the Health Group, contact your Kodak representative or visit www.kodak.com/go/health.
About Novation

Based in Irving, Texas, Novation is the leading health care contracting services company, delivering unmatched savings and value to nearly 2,500members of VHA Inc. and the University Health System Consortium (UHC), two national health care alliances. Through its competitive bid process, Novationdevelops and manages contracts with more than 500 suppliers, both large and small. By combining scale and agility with clinical knowledge and product expertise, Novation offers the most extensive range of innovative contracting services, including: contract development, contract and supplier management, custom contracting, enhanced savings programs, online contract management and analytical tools, order management and online supplier connectivity. VHA and UHC members used Novation's contracts to purchase more than $25 billion in supplies in 2005.
KODAK and CARESTREAM are trademarks of Eastman Kodak Company.
2007

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