PhotoChannel Networks Inc.
TSX VENTURE : PN
OTC Bulletin Board : PNWIF

PhotoChannel Networks Inc.

September 16, 2008 08:00 ET

PhotoChannel Announces New Chief Executive Officer

Kyle Hall chosen to lead PhotoChannel

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 16, 2008) - PhotoChannel Networks Inc. (TSX VENTURE:PN)(OTCBB:PNWIF) ("PhotoChannel" or "PNI" or "Company") the leading innovator in digital media solutions for retailers today announces it has appointed Kyle Hall formerly its Chief Marketing Officer to the role of Chief Executive Officer ("CEO"). Also as part of this announcement Aaron Rallo will assume the role of President, in addition to his current position of Chief Operating Officer, and Scott Brownstein, formerly of Fuji Film America and Eastman Kodak, has been appointed to the Company's Board of Directors.

"I first took on the role of CEO at PhotoChannel four years ago at the request of the board following two unsuccessful external appointments," says Peter Fitzgerald, Chairman and CEO of PhotoChannel. "I believe that although I have by necessity needed to perform my duties somewhat remotely from the UK it has been possible to run the company successfully thanks in particular to the strengths of the Company's senior management team."

"As the business has grown both within North America and in the rest of the world it has become increasingly obvious that the company needs a Vancouver based CEO. Accordingly I will be resigning as CEO effective September 30, 2008 to take up the role of Executive Chairman."

"The Company's board of directors has undertaken an external search for candidates for the CEO position over the last six to twelve months, during which time we have interviewed and considered some very senior industry executives, however, we have concluded that the existing management team provides the best source of talent to manage the company and build shareholder value going forward. Effective October 1, 2008, the Company will be headed by Kyle Hall as CEO, along with Aaron Rallo in the role of President and COO and Robert Chisholm as CFO.

"Also effective October 1, 2008, Scott Brownstein, a very well respected veteran of the digital imaging business will be joining the Board of PhotoChannel." Brownstein was the Chief Technology Officer and Senior Vice President of Fujifilm e-Systems, Inc., a wholly owned subsidiary of Fuji Photo Film, that specializes in building state-of-the-art digital solutions for Fuji's commercial, professional, and retail customers. Prior to that Mr. Brownstein spent 22 years at Eastman Kodak where he was the inventor of Kodak's PhotoCD product and led the technical team that commercialized the business.

"I, as well as the rest of the company, have greatly benefitted from Peter's leadership and counsel throughout the years," states Kyle Hall. "I am excited to take on the additional duties of the CEO role and I look forward to leading the rest of the team to continue to build on our accomplishments to date. We have had some huge customer wins in the last year such as Sam's Club, Costco and Kodak China while at the same time rapidly building out our technology leadership. Although we have accomplished a significant amount, we know we have much work to do going forward. We will continue to push the metrics needed to achieve profitability - the three month moving average of daily orders processed through our retailers is up over 180% versus the same period last year and averaged over 34,500 per day during the month of August 2008."

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. PNI Digital Media generates transactions for retailers and their thousands of locations worldwide including Wal-Mart/Sam's Club, Costco, CVS/pharmacy, Kodak and Tesco. For more information please visit www.photochannel.com.

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