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To: Jerome Wittamer who wrote (3756)	9/27/1998 10:57:00 PM
From: limtex	Respond to of 60323

Jerome adn all - What I was trying to get at is that surely managment must have strategy? Regards, L

To: Jerome Wittamer who wrote (3756)	9/29/1998 6:48:00 AM
From: Marc Phelan	Read Replies (1) \| Respond to of 60323

Jerome, Here is an interesting story. Old news? September 29, 1998 Eastman Kodak and Intel Introduce Compact Disc for Pictures By CLAUDIA H. DEUTSCH n the first tangible result of a marketing partnership they announced in April, the Eastman Kodak Co. and the Intel Corp. on Monday introduced a compact disk for pictures. The Picture CD combines digital versions of the prints photographers receive when they submit film for processing with software to enhance, crop and e-mail those photographs. The new disk, which will cost consumers $8.95 to $10.95 on top of regular processing costs, duplicates abilities that have been available through commercial software packages or through kiosks at retail stores. And, Kodak has an arrangement that enables subscribers to America Online to receive digital photographs via e-mail. But the Picture CD is the first product to include the software along with the photographs. "We're eliminating all obstacles to taking pictures further," said George M.C. Fisher, Kodak's chief executive. For Kodak, that could mean selling more film and more photographic paper. And, since the CD's have room for more than the photographs and software, Kodak could also juice up revenues by selling advertising space. Kodak might even sell "product placements" -- say, charge a shoe company for a feature that lets a user superimpose her face on that of an athlete wearing that brand of running shoe. Intel's payback is more indirect. The ability to manipulate and transmit images could give consumers another reason to buy powerful computers, hopefully incorporating Intel processors. "We want to promote visually connected P.C.'s," said Craig Barrett, Intel's president. For the longer term, Kodak and Intel will try to jointly develop a digital camera. "The Picture CD is a bridge to the totally digital future," Barrett said. Neither company would discuss plans for sharing revenues or profits. But each has anted up $75 million to market the Picture CD, and they are sharing the $50 million cost of upgrading Kodak's Qualex processing labs to handle the disk. Marc