Eastman Business Park Utilities to be Acquired by Recycled Energy Development

  Eastman Business Park Utilities to be Acquired by Recycled Energy
  Development

Leading energy efficiency firm to retain employees and upgrade power plant to
comply with new environmental regulations

Marks a major step in the Park’s revitalization

Business Wire

ROCHESTER, N.Y. -- December 21, 2012

Eastman Kodak Company and Recycled Energy Development (RED) today announced an
agreement under which RED will acquire, upgrade and operate the utility
infrastructure of Eastman Business Park (EBP), one of the nation’s largest
industrial complexes. This agreement provides stability for EBP and its tenant
companies and supports the Park’s revitalization.

According to RED Chief Executive Officer Sean Casten, the company is also
prepared to further invest in order to meet new environmental standards
(particularly the U.S. Environmental Agency’s Maximum Achievable Control
Technology standard for utility boilers).

“Depending on final compliance and conversion plans, RED plans to invest
$40-80 million to convert the coal-fired power plant to natural gas,” said
Casten. “This will increase the cogeneration system’s efficiency, allowing us
to continue to supply reliable and economical utilities services to the 37
tenants at Eastman Business Park, along with Kodak. These utilities include
electricity, steam, water, refrigeration, compressed air, and nitrogen, as
well as wastewater treatment.”

The EBP power plant utilizes highly efficient processes to generate steam,
electricity, and chilled water. The plant has an electric generating capacity
of 125 megawatts and also can deliver a similar amount of thermal energy to
EBP in the form of steam and chilled water.

“RED’s investment in Eastman Business Park is a critical step in our
collective efforts to revitalize the Park; it’s great news for the community,
for the tenants of EBP and for Kodak,” said Michael Alt, Director of Eastman
Business Park. “RED will work closely with Kodak and other major tenants of
Eastman Business Park to offer competitively priced, reliable and sustainable
services, to optimize energy efficiency on site, and to meet ongoing
regulatory obligations.”

RED is an industrial energy efficiency firm whose core mission is to help
companies profitably reduce greenhouse gas emissions. Its leaders have
designed, owned or operated more than 200 energy recycling projects like the
ones at EBP. RED will soon invest millions to increase the Park’s energy
efficiency and utilities productivity in order to help attract new businesses
and jobs to the region while ensuring compliance with MACT and other pending
environmental regulations.

Alt added that RED will join Kodak in working with officials across all levels
of government in what Kodak sees as a multi-tiered plan to grow Eastman
Business Park. According to Alt, ensuring the long-term stability of the
utilities infrastructure is a crucial step in this effort.

“RED thanks New York State for its cooperation and looks forward to continued
efforts to capture innovation and growth in Eastman Business Park,” said
Casten. “By supplying low-cost, highly efficient energy, RED believes EBP will
serve as a model for how industrial facilities across the country can meet
MACT requirements.”

The Kodak-RED agreement is subject to Court approval. It also requires
regulatory approvals and permitting, including from the New York State Public
Service Commission. The agreement's financial terms include about $10 million
total in cash paid to Kodak for utility assets.

About Kodak

Kodak is transforming itself into a B2B company focused on its Commercial
Imaging business. Kodak will be centered on commercial, packaging and
functional printing solutions and enterprise services, businesses in which it
offers customers advanced technologies and products that give them a
competitive advantage. The company also offers leading products and services
in Entertainment Imaging and Commercial Films. Its Personalized Imaging and
Document Imaging businesses are being marketed for sale. For additional
information on Kodak, please visit our website at www.kodak.com.

About Recycled Energy Development

Recycled Energy Development (www.recycled-energy.com) develops, owns, and
operates power projects that harness waste energy and dramatically reduce
greenhouse gas emissions and power costs. With more than 30 years’ experience
undertaking environmentally responsible energy development projects, RED’s
team works closely with industrial companies to optimize energy efficiency and
maximize profits. RED is supported by Tulum Trust, a private equity firm that
invests in low-carbon energy businesses.

Contact:

Kodak
Christopher Veronda, +1-585-724-2622
christopher.veronda@kodak.com
or
Recycled Energy Development
Dave Lundy, +1-312-629-5245
dlundy@aileroninc.com
 
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