Eastman Kodak Co, rushing to bolster its digital businesses as film-based photography fades, said yesterday it will replace its chief executive, Daniel Carp, with its No. 2 executive, Antonio Perez.

　　The world's largest film manufacturer said Carp, who has been CEO since January 2000, will step down from the top post on June 1 and will retire as chairman at the end of the year. Perez also will succeed him as chairman on January 1, 2006.

　　Kodak became an American corporate icon on the strength of its traditional film, paper and photofinishing businesses. But Carp led it on a painful path to expand its reach as a digital heavyweight in photography, medical imaging and commercial printing.

　　Carp, 57, joined Kodak in 1970 as a statistical analyst, became president and chief operating officer in January 1997 and was elected to its board in December of that year. In 2000, he succeeded George Fisher, who stepped down as CEO after a turbulent six-year reign.

　　Carp said he recruited Perez just over two years ago from Hewlett-Packard Co in anticipation that Perez would succeed him at the helm.

　　"It is time for me to turn over the reins to Antonio, who has contributed so much to Kodak in such a short time," Carp said in the statement. "I am confident in his ability to continue the transformation, and I will leave with the satisfaction that Kodak's future is in the hands of such a capable, innovative leader."

　　Perez, 59, joined Kodak in April 2003.

　　(The Associated Press)