America Online and Kodak Announce 'You've Got Pictures!'

May 19, 1998

Drop Off Roll of Film From Any Camera at Local Retailer, Receive E-Pictures at AOL Address, Share Online Picture Albums with Friends and Family, Order Reprints, Enlargements and Merchandise with Ease and Convenience of E-Mail More Than 30,000 Retail Locations Across the United States Expected to Offer New Service DULLES, VA and ROCHESTER, NY, May 19, 1998 - America Online, Inc., the world's leader in branded interactive services and content, and photo giant Eastman Kodak Company today announced an alliance to offer AOL members an exclusive new online service - "You've Got Pictures!"(sm) - that will revolutionize how people share and store their favorite pictures and add a compelling new dimension to both online communications and photography. Powered by pioneering digital imaging technology created by Kodak PhotoNet online, "You've Got Pictures!" will make online pictures as easy to obtain as prints, as easy to send as e-mail and easier to organize, store and personalize than ever before: ** AOL's more than 12 million members will be able to have their pictures delivered directly to their "You've Got Pictures!" box on AOL, simply by including their AOL screen name when dropping off a roll of film for processing at retailers nationwide and checking an e-pictures box on the form. ** More than 30,000 retail locations around the country who process Kodak film are expected to offer "You've Got Pictures!" for an additional fee. These retail locations will develop the film and scan and upload members' pictures directly to AOL via Kodak PhotoNet online, within usually 48 hours of drop-off. ** Members will be able to use their current cameras, film and home PCs to get their pictures online - they will need no new equipment. ** AOL will add a new "You Have Pictures!" icon to the AOL Welcome Screen, directly below its familiar "You Have Mail!" icon. When AOL members receive their pictures online, the icon and a "You've Got Pictures!" voice will let them know the pictures have arrived and are available for online viewing. ** Like their e-mail boxes, every AOL member will have "You've Got Pictures!" as an integrated feature of their AOL account. AOL members can then visit their "You've Got Pictures!" box, click on the pictures displayed and easily organize them into an AOL Picture Album. Members will be able to personalize the AOL Picture Albums by adding captions and backgrounds and cropping or enlarging them for sharing with friends and family. ** AOL members will also be able to order reprints, enlargements and a range of merchandise personalized with consumers' pictures from retailers of Kodak products, further extending the use of their pictures. In addition, members will be able to allow friends and family access to their images so they can order personalized merchandise as well. "You've Got Pictures!" Brings Online Pictures to Mass Market Audience Bob Pittman, America Online's President and Chief Operating Officer, said, "'You've Got Pictures!' is one of the most exciting consumer services ever to be offered online, and we expect it to rival 'You've Got Mail!' as a signature feature of AOL. This exclusive service will provide AOL members a revolutionary new way of putting their pictures online to share and store their most treasured moments. And it will add a whole new dimension to the online experience." Mr. Pittman added, "'You've Got Pictures!' will give consumers a powerful new reason to come online. Plus, the link to Kodak's extensive network of photo retailers extends the AOL brand into retail establishments in a big way for the first time." "More and more, people are looking to AOL to make important parts of their daily lives - like sharing pictures with family and friends - easier and more convenient. 'You've Got Pictures!' is a prime example of the exclusive benefits that make AOL so valuable to our members," Mr. Pittman concluded. Kodak President and Chief Operating Officer Dan Carp pointed out that this new alliance forges a critical online link in Kodak's digitization strategy, which positions film as the ideal pathway to digital imaging. "Perhaps best of all, consumers will not have to change their picture-taking habits to enjoy the benefits of online photography," Mr. Carp said. "By using their traditional camera and film, they can allow their photo retailer to scan and upload their pictures to AOL via Kodak PhotoNet online. "Americans will take some 20 billion pictures this year, and the industry will process more than 750 million rolls of film. Now, through this exciting new service, people will truly 'Take Pictures, Further' than they ever imagined," Mr. Carp continued. "Kodak's business is pictures - pictures for memories, entertainment and information," Mr. Carp added. "Our goal is to help consumers unleash the power of pictures, enabling them to do more with their photos than ever. Working together, Kodak, AOL and photo retailers will let consumers realize the potential of online pictures in a fun and easy-to-use way. Much like George Eastman said nearly a century ago, 'You press the button, we do the rest.'" Additional Features Allow Consumers to "Take Pictures. Further." AOL and Kodak will offer "You've Got Pictures!" starter kits and photo clubs allowing AOL members to easily enjoy the full benefits of the service. Included in these will be special packages with offerings such as free reprints, merchandise offerings like mugs and apparel, additional print storage and special holiday offers. In addition, parents will be able to use AOL's Parental Controls to restrict their children's access to photos and ensure that "You've Got Pictures!" is a safe and family-friendly service. AOL and Kodak also plan to develop an imaging area for AOL.COM that allows other Internet users and AOL members who do not have access to their AOL accounts to use the service, building another useful feature into the most frequently visited site from home on the World Wide Web. AOL and Kodak said they will make joint investments in advertising and marketing, product development, and ongoing support. The two companies will share in revenues from the venture. AOL also has made a minority investment in Eastman Kodak's subsidiary PictureVision, Inc. Kodak expects photo retailers to benefit from this new service through increased revenues resulting from growth in the photo category and greater demand for digital imaging services. The companies said that they expect to make "You've Got Pictures!" available to AOL members starting later this year.

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