Kodak and Lexar Join Forces In Drive For Removable Digital Memory Market Leadership

ROCHESTER, N.Y. and FREMONT, CA., May 17-Eastman Kodak Company (NYSE:
EK) and Lexar Media, Inc. (Nasdaq: LEXR) today announced they have
formed a long-term agreement to gain a larger share of the market for
removable digital memory products, driven by surging demand from the
mass-market adoption of digital cameras, mobile phone cameras, portable
music players and other consumer electronics devices. 

As part of the exclusive multi-year agreement, Lexar Media will
manufacture and distribute a full range of KODAK branded memory cards
and will work with Kodak to provide consumers with a wide variety of
reliable, high quality, mass-market memory cards worldwide.  Kodak will
contribute to the partnership its brand power and global distribution
network, while Lexar Media will contribute removable memory products
known for their quality, reliability and speed, and its demonstrated
retail category management. Both companies will market the products

"This agreement is ideal for both parties," said Bernard Masson,
president, Digital & Film Imaging Systems, and senior vice president,
Eastman Kodak Company. "For Kodak, it represents another step in our
effort to accelerate the growth of our digital businesses by providing
customers and our retail partners a full suite of KODAK branded memory
cards that will work with virtually any product and system. Lexar will
benefit from Kodak's worldwide brand presence and massive global
distribution network." 

"We recognize the power of the KODAK brand across photography and
imaging fields and we are pleased that they have selected Lexar to help
drive the KODAK brand into this fast-growing category," said Eric Stang,
chairman, president and CEO, Lexar Media, Inc.  "Lexar's superior
controller technology and retail focus combined with Kodak's brand
strength and worldwide distribution network will enable us to deliver
memory cards with the quality and performance that consumers have come
to expect from Kodak."

With this agreement Lexar and Kodak will develop strategies for each
segment of the memory card market and drive the KODAK branded memory
cards into a broad range of channels worldwide. According to IDC,
worldwide digital camera sales are expected to top 68 million units in
2004, a 39% growth over 2003, and grow to over 87 million units in 2007.
In addition, worldwide camera phone unit shipments are expected to reach
186 million in 2004 and grow to more than 422 million units in 2007.
This year alone, digital camera sales will drive retail sales of more
than 100 million memory cards with an expected retail sales value of
over $4 billion.

"With the rapid and consistent adoption of digital technology in cameras
and cell phones and with ever increasing resolutions, we expect digital
memory cards to become one of the primary storage devices for most
consumers worldwide," said Chris Chute, senior analyst for Worldwide
Digital Imaging Program of IDC.

Consumers can expect to see a full suite of KODAK branded memory cards
on store shelves in the fourth quarter of 2004. The product line-up will
include Secure Digital (SD), Mini-SD, Multimedia Cards (MMC),
CompactFlash(tm), and additional media formats will be offered in the
future.  The companies did not disclose the financial terms of the

For more information, please visit www.lexarmedia.com.