Creo Inc.

Creo Inc.

March 29, 2005 10:45 ET

Creo Announces Status of Regulatory Applications


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CREO INC.

TSX SYMBOL: CRE
NASDAQ SYMBOL: CREO

MARCH 29, 2005 - 10:45 ET

Creo Announces Status of Regulatory Applications

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 29, 2005) - Creo Inc.
(TSX:CRE) (NASDAQ:CREO) issued an update on the status of various
regulatory applications prior to today's annual and special meeting of
shareholders. Shareholders will vote later today to approve the proposed
acquisition of Creo by Eastman Kodak Company (NYSE: EK) and the
resolution to waive the application of the company's shareholder rights
plan to the transaction. At the meeting, shareholders will also vote on
the re-election of the 10 current members of the Creo board of directors
and appointment KPMG LLP as the company's auditor for the next year. The
meeting will be held in Burnaby, B.C. Voting results will be filed with
the Canadian and United States securities regulators later today.

Kodak and Creo have made the required regulatory filings in connection
with the transaction in Canada (February 23, 2005), the U.S. (February
24, 2005), Israel (March 15, 2005), China (February 24, 2005), South
Africa (March 29, 2005) and Brazil (February 18, 2005). The parties are
currently engaged in the customary pre-filing procedures with the
European Commission and expect to shortly make a formal filing. A
preliminary filing with the European Commission was made on March 9,
2005.

On March 22, 2005, Creo was advised by the Antitrust Division of the
United States Department of Justice (the "DoJ") that the DoJ had
obtained clearance to open an informal investigation of the transaction.
On March 28, 2005, the DoJ issued to Creo and Kodak a request for
additional information and materials (the "Second Request").
Consequently, the waiting period under the Hart-Scott-Rodino Antitrust
Improvements Act of 1976 did not expire on March 28, 2005, but will
expire 30 days after both Creo and Kodak have complied with the Second
Request, unless early termination of the waiting period is granted.

On March 29, 2005, the companies received approval from the Canadian
competition authorities in the form of a "no action" letter. The Senior
Deputy Commissioner of Competition issued the letter in respect of the
proposed transaction, which indicates that he is of the view that there
are not sufficient grounds to initiate proceedings before the Canadian
Competition Tribunal. The parties continue to work toward obtaining all
required regulatory approvals and completing the transaction in the
summer of 2005.

This news release contains forward-looking statements within the meaning
of the "safe harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995. These statements are based on
management's current expectations and beliefs and are subject to a
number of risks and uncertainties that could cause actual results to
differ materially from those described in the forward-looking statements.

These risks and uncertainties include the following: (1) the
announcement of the transaction to enter into an arrangement agreement
with Eastman Kodak Company on January 31, 2005 may disrupt some of our
customer or supplier relationships which may adversely affect future
results; (2) new markets and product introductions do not proceed as
planned and may adversely affect future revenues; (3) technological
changes or changes in the competitive environment may adversely affect
the products, market share, revenues or margins of the business; and (4)
changes in general economic, financial or business conditions may
adversely affect the business or the markets in which it operates. These
risks and uncertainties as well as other important risks and
uncertainties are described under the caption "Certain Factors That May
Affect Future Results" and elsewhere in our Annual Report for the fiscal
year ended September 30, 2004, as filed with the U.S. Securities and
Exchange Commission and other documents filed with the U.S. Securities
and Exchange Commission, and which are incorporated herein by reference.
We do not assume any obligation to update the forward-looking
information contained in this news release.

(C) 2005 Creo Inc. The Creo product names mentioned in this document are
trademarks or service marks of Creo Inc. and may be registered in
certain jurisdictions. Other company and brand, product and service
names are for identification purposes only and may be trademarks or
registered trademarks of their respective holders. Data subject to
change without notice.

About Creo

Creo Inc. is a global company with key strengths in imaging, software,
and digital printing plate technology. A leading provider of prepress
systems, Creo helps over 25,000 customers worldwide adopt digital
production methods which reduce costs, increase print quality and allow
them to serve their customers more efficiently. Based on a solid
foundation of intellectual property, Creo has an unmatched range of
technology solutions that address the needs of commercial, publication,
on demand, packaging, and newspaper printers, and creative
professionals. Creo product lines include software and hardware for
computer-to-plate imaging, systems for digital photography, scanning,
and proofing, as well as printing plates and proofing media. Creo also
supplies on-press imaging technology, components for digital presses,
color servers and high-speed digital printers.

Based in Vancouver, Canada, Creo reported fiscal 2004 revenue of US$636
million. Creo trades on NASDAQ (CREO) and the TSX (CRE). www.creo.com

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Creo Inc.
    Rochelle van Halm
    Media Relations (Headquarters)
    (604) 676-4526
    Email: rochelle.van.halm@creo.com
    or
    Creo Inc.
    Tracy Rawa
    Investor Relations
    (604) 419-4794
    Email: IR@creo.com
    Website: www.creo.com