Kodak Invests in Snapfish
Broad Agreement Leverages Companies' Strengths to Offer Consumer Photography Services Online
ROCHESTER, N.Y., AND SAN FRANCISCO - June 26, 2000 - Eastman Kodak Company today announced that it has made an equity investment in Snapfish, Kodak's first investment in an online photoprocessing company.
Under the terms of the agreement, Kodak will be the exclusive provider of online digital printing services through its new Print@Kodak service (See related announcement: "Kodak Answers Industry Demand for Internet Photofinishing with Launch of Print@Kodak Service," June 26, 2000.) Kodak gains a leading online distribution partner. The investment provides for a board observer seat.
"Online photography companies represent a new channel for Kodak. We chose to make this investment in Snapfish because we believe its service represents another innovative way to introduce consumers to the benefits of online photography - regardless of whether they use a film or a digital camera," said Willy Shih, president, Digital and Applied Imaging, and senior vice president, Eastman Kodak Company. "The relationship with Snapfish extends Kodak's leadership in the Internet photography market and builds upon our strategy to provide key digital services to the Internet photography industry."
While Snapfish has always offered prints on Kodak photographic paper, the new agreement expands Kodak's reach and services for Snapfish customers.
"Through our growing relationship with Kodak, Snapfish can offer our customers additional services from the most respected brand name in the consumer photography industry - Kodak," said Rajil Kapoor, chairman, CEO and co-founder of Snapfish. "Partnering with a giant like Kodak - the undisputed worldwide leader in the consumer photography market - enables us to offer our customers the quality they demand."
Snapfish is positioned to dramatically redefine the consumer photography market by providing the first complete photo service that offers film developing, printing, storing and sharing online, all for free. Customers pay only for shipping and handling of their prints. The award-winning Snapfish business model provides both film-based and digital camera users the ability to seamlessly and effortlessly share, store and order reprints with unsurpassed security.
Privately held and backed by Mayfield Fund, @Ventures, the affiliated venture capital arm of CMGI, Inc., Kodak, Trans Cosmos, Audax Ventures, BellSouth, Compaq, and additional private investors, Snapfish was founded by second-generation Internet leaders from Excite@Home and Cisco Systems.
Snapfish has a strategic partnership for film processing with District Photo, the nation's largest mail order photo finishing lab, with more than 50 years of experience in the market. Snapfish uses Kodak paper and materials for all of its processing.
With consumer photography representing a $14.90 billion market in the United States alone, Snapfish is poised to provide consumers with breakthrough benefits in online photography and reinvent an enormous consumer category in the process. The company is based in San Francisco, California.
Additional information is available at the company's Web site at http://www.snapfish.com.
Eastman Kodak Company is the leader in photography-traditional, digital and online-with sales
of more than $14 billion for 1999. Committed to making digital photography easy and accessible,
Kodak is a leading supplier of digital cameras and inkjet media. Kodak provides a range of
consumer digital services, including Kodak Picture CD, Kodak PhotoNetä online, "You've Got
Pictures" in cooperation with America Online and Kodak Picture Disk. Kodak PhotoNet online
is one of the first and most popular Internet-based picture sharing services, which, along
with "You've Got Pictures," Print@Kodak and kodak.com, make Kodak a leader in this emerging
new field. For more information about Kodak products and services, please visit our website