Kodak, HP to Team on Digital-Photo Printing ‘Labs’

Eastman Kodak Co. and Hewlett-Packard Co. formed a venture to sell stores equipment to print digital photos and transmit them via the Internet. The “mini-labs” will consist of processing and scanning equipment linked to an HP printer. They’ll work with photos digitally scanned from conventional prints and negatives, or those stored in a computer data file. The product, which won’t be introduced until next year, helps address a main complaint about using digital cameras--that the quality of photos printed on typical home printers doesn’t even come close to regular film. Kodak and Hewlett-Packard, which are investing equal undisclosed amounts in the venture, expect the new venture to generate $500 million to $1 billion in sales by 2005. On the New York Stock Exchange, Kodak rose $1.75 to close at $63.25, while Hewlett-Packard rose $2.94 to close at $113.50.