August 12, 2013 Judge Allan Gropper United States Bankruptcy Court Southern District of New York One

Bowling Green New York, NY 10004-1408 Re: Eastman Kodak Case 12-10202 (ALG) Dismissal of Lazards Valuation Analysis for the First Amended Plan of Reorganization Dear Judge Gropper, I respectfully request that the court dismiss the inaccurate and unacceptable valuation analysis prepared by Lazard Frres & Co. LLC (Lazard) for the First Amended Plan of Reorganization (the Plan), and to order an independent valuation of Reorganized (New) Kodak by a qualified security valuation expert before considering confirmation of the Plan. 1. Lazard did not provide a proper valuation analysis in the Plan, except for an estimated range of $800 to $1,250M for the Enterprise Value of New Kodak, and based on this estimate a range of $208 to $658M total equity value. 2. On August 2, 2013, Lazard revised its valuation of New Kodak. In Docket Number 4567, Page 12, and as shown in Exhibit 1, Lazard reported its final estimate of New Kodaks Enterprise Value in the range of $875M to $1.375B. 3. Lazard used two valuation methods: Discounted Cash Flow Analysis (DCF Analysis) and Comparable Company Analysis (CC Analysis); and gave 15% weight to the DCF Analysis and 85% weight to the CC Analysis. This assumption is unjustified. DCF Analysis is based on New Kodaks future cash flows and provides a better valuation of New Kodak. The DCF Analysis valuation should have at least 50% weight and not less than the CC Analysis valuation. 4. To do the DCF Analysis, Lazard used New Kodaks 4 year (2014-2017) cash flow forecast and a 12.5% discount rate. Lazards DCF Analysis Enterprise Value of New Kodak is in the range from $2.144B to $2.880B with an average of $2.512B. Lazards 4 year DCF Analysis is unacceptable. Lazard should have used at least a 5 year or preferably 10 year cash flow forecast for a proper DCF Analysis. A 5 year DCF Analysis (instead of 4 years) increases Lazards $2.5B Enterprise Value estimate by $1B to $3.5B. 5. Exhibit 2 shows that, in its CC Analysis, Lazard used 13 companies grouped in 3 Tiers: Tier 1 Agfa (25% weight), Fuji (25% weight) ; Tier 2 Heidelberger (16.66% weight), Xeikon (16.66% weight); Tier 3 - Bobst, Canon, Dainippon, EFI, HP, Konica Minolta, Ricoh, Xerox (1.8% weight each). Lazards selection of comparable companies and the weights that Lazard assigned to these companies are unacceptable. It is evident that Lazard selected the four foreign companies in Tier 1 and Tier 2 that have low earnings growths and low EBITDA multiples (less than 5) intentionally. Then, by assigning 83.3% weighting to these companies in the CC Analysis, Lazard estimated a very low 5 EBITDA multiple for New Kodak. 1

6. Lazards CC Analysis is inaccurate, because it does not consider the earnings growth factor in the selection of companies for comparison with New Kodak. It is a well known fact that the equity market values higher growth companies with much higher EBITDA multiples. Fast growing companies like New Kodak are valued using the PEG (Price Earnings to Growth) ratio valuation method, and a fairly valued company will have a PEG ratio of 1. Lazards CC Analysis assumes that flat to negative earnings growth companies like Agfa (25% weight) and Fuji (25% weight) should have a similar EBITDA multiple with New Kodak that has 33% EBITDA growth and 63% cash flow growth during the four year period from 2014 to 2017. In fact, none of Lazards selected companies earnings growth rates come even close to the 33% earnings growth rate of New Kodak. 7. Exhibit 3 shows a proper CC Analysis valuation of New Kodak. It shows the current EBITDA multiples and PEG ratios of the top 50 companies in the Business Equipment and Services Industry, the industry group of New Kodak. The lowest EBITDA multiple in this list is 6.4. The average EBITDA multiple is 16.1, and the average PEG ratio is 1.7 (using 5 year earnings growth forecasts). This means the top 50 companies in New Kodaks industry group are expected to grow on average at 9.5% annually. New Kodaks EBITDA growth during the next 4 years is 33.3%. 8. Based on the CC Analysis using the top 50 companies in New Kodaks industry as shown in Exhibit 3, New Kodak should have an EBITDA multiple of 56.6 using the PEG ratio method (New Kodaks 33% earnings growth rate multiplied by the average PEG ratio of 1.7) and at least 16.1 using the industry average EBITDA multiple (even though the top 50 companies 9.5% earnings growth rate is much lower than New Kodaks 33.3% growth). The average of these two methods gives New Kodak an EBITDA multiple of 36.3. Also, using the fair valuation PEG ratio of 1 gives New Kodak an EBITDA multiple of 33.3 (PEG ratio of 1 multiplied by EBITDA growth rate of 33.3%), much higher than the EBITDA multiple of 5 that Lazard estimated. 9. An EBITDA of multiple of 36 gives New Kodak a $7.5B Enterprise Value using its 2014 EBITDA of $209M. Assuming an equal weighting (50/50) of the CC Analysis valuation of $7.5B and the 5 year DCF Analysis valuation of $3.5B, the Enterprise Value of New Kodak is $5.5B, much higher than the range of $875M to $1.375B that Lazard estimated on August 2, 2013. 10. The top 50 companies in New Kodaks industry have an average Price to Sales (market value to revenue) ratio of 1.6. Using this ratio will give New Kodak a market value of at least $4.2B (2014 revenue of $2.6B multiplied by 1.6 Price to Sales ratio). And this estimate is conservative, because New Kodak has much higher revenue and earnings growth than the average company in its industry. It is evident that Lazards revised $507M valuation on August 2, 2013 is inaccurate and grossly underestimates the Reorganization Value of New Kodak. Lazards Valuation Analysis should be dismissed by the court and replaced with a proper valuation done by a qualified independent security valuation expert.

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Exhibit 1 - Lazard's Valuation Analysis Update on August 2, 2013 (Docket 4567)

Exhibit 2 - Lazard's Comparative Company Analysis Published on July 31, 2013 (Docket 4504)

Exhibit 3 - Enterprise Value/EBITDA Multiple for the Top 50 US Companies in Business Equipment and Services Industry Screening System: StockROVER by Black Mountain Capital Management, Data Source: Morningstar Inc.