PhotoChannel Networks Inc.
TSX VENTURE : PNI
OTC Bulletin Board : PHCHF

PhotoChannel Networks Inc.

February 01, 2006 15:02 ET

CVS/pharmacy and PhotoChannel Launch New Online Photo Service

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 1, 2006) -

CVS/pharmacy to deploy PhotoChannel's PNI Digital Media Platform to offer the most "online to retail" printing locations in North America

PhotoChannel Networks Inc. (TSX VENTURE:PNI)(OTCBB:PHCHF) ("PhotoChannel" or "Company") the leading innovator in online digital media solutions for retailers announces that it has reached an agreement with CVS/pharmacy to launch a new online photo service. Using the PNI Digital Media Platform, the new service enables CVS/pharmacy customers to place photo orders online and pick them up in any of over 5,000 CVS/pharmacy locations nationwide. The new photo service is live and is located at www.cvs.com. When completed this will be the largest distributed printing network offered by any retailer in North America.

"PhotoChannel is extremely honored to announce CVS/pharmacy as a partner," says Peter Fitzgerald, Chairman and CEO of PhotoChannel. "CVS/pharmacy is a household name in photofinishing in the US, with more locations than any other photofinishing retailer. With this new service CVS/pharmacy will extend their leadership position by offering consumers an online to retail store printing alternative. This relationship confirms PhotoChannel as one of the leading providers of distributed digital content to retailers in North America and will result in an over 1000% increase in the number of stores directly connected through our network."

About PhotoChannel - Founded in 1995, PhotoChannel operates PNI Digital Media to provide services for major retailers, wireless carriers and content providers. The PNI Digital Media Platform connects consumer ordered digital content with retailers that have on demand manufacturing capabilities for the production of merchandise. Currently PNI Digital Media generates transactions for some of the world's largest photo retailers with their thousands of locations and millions of customers. For more information please visit www.pnidigitalmedia.com.

WARNING: The Company relies upon litigation protection for "forward-looking" statements.


The TSX Venture Exchange has neither approved nor disapproved the information contained in this release.

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