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Tekgraf, Inc. Announces Kodak Distribution Agreement

Revenue of $10,000,000 Expected for 2001 With a Run Rate of $20,000,000 For 2002

May 31, 2001 /PRNewswire/ -- Due to increasing demand for its quality large-format inkjet products, Kodak Professional, a division of Eastman Kodak Company (NYSE: EK) has enlisted value-added distribution provider Tekgraf Inc. (Nasdaq: TKGF), to sell and support its large-format inkjet portfolio. The agreement means greater accessibility to and improved delivery of Kodak Professional-s leading printers, inks, media and related items for a broad range of large-format inkjet applications.

As a full-service solutions provider, Tekgraf will distribute Kodak Professional-s complete portfolio of large-format inkjet products -- thermal and piezo-head printers, EI Lightfast-Plus inks and media, and an extensive menu of substrates -- to its network of dealers in the U.S. Tekgraf estimates sales of these Kodak Professional products will triple by year-end as a result of the improved distribution and support the company provides. "Our revenue expectation for Kodak printers, inks, and substrates should exceed $10 million in calendar year 2001 and be at run rate to exceed $20 million in 2002" said Scott C. Barker, Vice President of Sales, Tekgraf, Inc.

"Our goal is to provide a high level of expertise for both the technology and the applications for all users, and to satisfy even the largest customers with total large-format inkjet imaging solutions," said Debra R. Hogan, General Manager and Vice President of U.S. Sales, Kodak Professional. "We are the only manufacturer that can deliver all the key components of a solution, offer expert advice and support to ensure it works, and make purchase, delivery and set-up as headache-free as possible."

The addition of Tekgraf complements Kodak Professional-s -total solutions- model to deliver not only superior products, but also superior service and support to customers in the rapidly growing color display segment. Kodak Professional-s distribution set-up is a hybrid that combines the best of a direct sales force with technology-savvy Kodak-s-authorized systems integrators serving primarily government customers and Tekgraf to provide controlled value added distribution for the dealer channel.

"We-re a major player in large-format imaging today, which means we-ve been both influencing and responding to this fast-growth market," Hogan said. "Enlisting Tekgraf as a key channel partner greatly improves our ability to provide customers with the best products and service in the most efficient manner. Their reputation for technical expertise, value-added services, and reliability are well known, and we-re confident they-ll represent us well."

"The market for large-format inkjet products is growing exponentially," said Barker. "We-re very pleased that Kodak Professional -- a leader in the large-format segment -- has chosen Tekgraf Inc. -- the U.S. leader in value-added distribution of display graphics technologies -- to help them reach this rapidly expanding market. We look forward to a relationship that succeeds by putting the customer first."

Along with its legacy of expertise in color science and media development, Kodak is known for excellence in ink development and manufacturing. Scientists and researchers at Kodak having invented more than 30,000 dyes since 1928 and hold a large number of patents on process and design for dye and pigment-based inks. Both inks and media are developed within Kodak by dedicated teams of image science professionals using highly rigorous development, testing and certification processes to ensure best-in-class performance.

This agreement extends Kodak-s participation in infoimaging -- the $225 billion industry created by the convergence of images and information technology in ways that were never before possible. Infoimaging is about images, enabled by technology, improving communication and commerce, and creating significant new revenue and market opportunities for businesses. Large-format inkjet imaging is a high-profile example of information communicated through innovative applications of images in new and dramatic ways.

About Tekgraf

Tekgraf, Inc. (Nasdaq: TKGF), headquarter in Vernon Hills, IL, is a value-added integrated solutions provider to the advanced computer graphics marketplace with emphasis on the pre-press, wide format, digital printing and large format electronic document management markets.

Centiv(TM), a division of Tekgraf, provides customizable print communications programs that increase revenues for retailers, distributors and manufacturers in a variety of industries. Centiv-s turnkey Point-of-Purchase merchandising solutions are being employed by leading U.S. Corporations such as Anheuser-Busch and UDV. Visit it-s website: http://www.centiv.com for a product demonstration.

CalGraph Technology Services Inc., a wholly owned subsidiary of Tekgraf, is a leading provider of on-site service and preventative maintenance services specializing in wide-format printing and scanning devices. CalGraph-s U.S. and Canadian service operations include 75 field service technicians, customer support call center, component repair and refurbishment facilities and parts logistics. For more information regarding CalGraph visit it-s website: http://www.calgraphinc.com

For more information: www.tekgraf.com

Editor-s Note: For information about Kodak Professional: www.kodak.com/go/professional.

Editor
5/31/2001


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