Kodak Issues Statement Regarding NAD Proceedings

ROCHESTER, N.Y.- Eastman Kodak Company today issued the following statement in response to a news release issued by the National Advertising Division of the Council of Better Business Bureaus.

“Kodak’s inkjet printer advertising claims are accurate and well substantiated. Our claims are backed by thorough data and testing by independent third parties, information that is widely available to the public online at www.PrintAndProsper.com. We have previously successfully defended our ink savings claims utilizing the NAD process. After reviewing our testing data, the NAD concluded that Kodak “provided a reasonable basis for its ink cost-savings claim (‘Save up to 50% on everything you print.’).”

“We respect the role of the NAD for industry self regulation, however, we feel that HP’s complaint is nothing more than an attempt to distract us from serving our customers and growing our consumer inkjet business. We believe that HP’s challenge is not about the truth and accuracy of Kodak’s claims, but rather is simply an effort to maintain HP’s dominant market presence while it continues to increase its ink prices.

“At the core of this issue is consumers’ number-one dissatisfaction with home printing: the cost of ink. Kodak has solved that issue with our innovative business model – charging a modest premium for an inkjet printer and a fair price for high-quality inks. Consumers are embracing Kodak’s value proposition; as evidence, for the last two quarters, sales of Kodak’s inkjet printers and ink have grown by double-digits while the rest of the industry has declined.

“Given today’s economic climate, instead of arguing over advertising claims, which have been accurately communicated and thoroughly substantiated, it would be more meaningful to consumers for HP to simply begin offering reasonably priced ink.”