KODAK <EK> CONTINUES DRIVE INTO NEW MARKETS
Eastman Kodak Co, best known for its
cameras and film products, took several steps today to boost
its image as a diversified information systems company.
    The Rochester, N.Y.-based company unwrapped a series of new
electronic data and image storage systems that can create vast
computerized libraries of documents and pictures.
    Analysts said Kodak made a good start in the emerging
market for such systems, sales of which are expected to reach
five billion dlrs by 1990. But they warned several years may
pass before the new systems contribute to its bottom line.
    Kodak also launched a 50 mln dlr advertising campaign to
promote its new image. "We want to be to the imaging market
what IBM is to the data processing market," said Edgar J.
Greco, vice president and general manager of Kodak's business
imaging systems division.
    While more than 45 pct of Kodak's 11.55 billion dlrs in
sales for 1986 came from photography products, Kodak said sales
of copiers, electronic storage systems and other business
products will exceed four billion dlrs this year.
    "We're launching a major attack on these new markets,"
Greco said.
    "Kodak perceives that these new businesses will be its
bread and butter," said Wertheim and Co analyst Michael Ellman.
    But Richard Schwarz, who follows Kodak for E.F. Hutton and
Co, said the company will find the profit margins much slimmer
on sophisticated imaging systems than on its consumer
photography products. "The critical problem will be turning a
profit," he said.
     Kodak also announced the first commerically available
14-inch optical disk. Kodak said the disk can store the
equivalent of the contents of 110 file cabinet drawers.
 Reuter
