Eastman Kodak divested minority equity position in PracticeWares, Inc.

Eastman Kodak Company has divested of a minority equity position in a dental products dealer, PracticeWares, Inc., that was part of its acquisition of PracticeWorks, Inc. last year.
PracticeWares will continue operations as an independent distributor of dental supplies and small equipment, serving dental practitioners throughout the United States.

PracticeWorks, a dental practice-management software and e-services company, had assumed a 19.99 percent equity position in PracticeWares Dental Supply Company in 2002, well before its acquisition by Kodak.

The divesture of PracticeWares was planned from the early stages of the PracticeWorks acquisition, noted David C. Allen, director of new business development, Kodak's Dental Systems Group. "Owning a dental products dealer was never a component of Kodak's strategic vision," Allen said. "For this reason, we have been negotiating diligently since the acquisition of PracticeWorks was finalized to come to the agreement we're announcing today."

Greg Jones, CEO, PracticeWares, said, "In reaching this agreement with Kodak, PracticeWares is well positioned for the future. We are now independent, financially strong, and fully able to pursue our desired growth initiatives. I am also excited that, other than Kodak's divestiture, we are retaining our existing core ownership structure ¿ which means we remain employee-owned and operated."

Ruth Arbuckle, general manager, United States and Canada, Kodak's Dental Systems Group, noted that the divesture reinforces Kodak's commitment to all of its dental products dealers, which the company relies on to distribute the company's film and consumables products. "Kodak places a high value on the relationships we have with our dental products dealers," Arbuckle said. "It's important for us to build and support each of those relationships equitably and equally. This divesture ensures we can do that."

Earlier Period in PracticeWorks History
Al Fiore, vice president of corporate development, PracticeWorks, explained that his company's equity position in PracticeWares reflected an earlier period in PracticeWorks' history. "Now that we are a part of Kodak our business model has changed. And as a result, a minority position in PracticeWares no longer offers the strategic value it might have, had we remained an independent company."

"We can now heighten our focus on our customer and execute more completely on our unique value proposition, which has been the primary catalyst for our growth over the last several years," added John Boresi, COO, PracticeWares. "Our employees are looking forward to continuing our business expansion as an independent brand in the market place."

The divesture does not impact PracticeWares' dealer agreement with Kodak, and as such, PracticeWares will continue to distribute Kodak's dental film, anesthetics and other consumables. Terms of the divestiture were not announced.

About Kodak's Dental Systems Group
Kodak's Dental Systems Group is a leading participant in infoimaging, a $385 billion industry created by the convergence of image-and-information technology. The business, which includes wholly-owned subsidiaries PracticeWorks, Inc. and Trophy Radiologie, S.A., develops, manufactures and markets dental imaging and practice management systems for dental practitioners, including practice management software and electronic services, intraoral and extraoral dental imaging films, processing chemistry and x-ray equipment; direct-digital dental x-ray technology; digital cameras and accessories for dental applications; photographic-quality paper for printing digital images; COOK-WAITE brand local anesthetics; and a variety of related products and services. Infoimaging unites three closely related imaging markets that enable people to more easily take and share images as information: devices, such as digital cameras and x-ray systems; infrastructure, such as practice management software; and services and media, such as photographic-quality inkjet paper and electronic claim processing.

For more information about Kodak's digital radiography products and practice management solutions, call (800) 944-6365. For information about Kodak's film products, or COOK-WAITE brand local anesthetics, call (800) 374-1871. Information can also be found by visiting Kodak's Health Imaging Dental Systems Group website at http://www.kodak.com/go/dental or contact your regional KODAK products representative.