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

PhotoChannel Networks Inc.

October 13, 2005 14:50 ET

PhotoChannel Launches PNI Digital Media Platform; Next Generation Platform Available Today

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 13, 2005) - PhotoChannel Networks Inc. (TSX VENTURE:PNI)(OTCBB:PHCHF) ("PNI" or "PhotoChannel" or "Company") announces the availability of its next generation technology platform known as the PNI Digital Media Platform.

The PNI Digital Media Platform allows retailers to conduct online transactions for photos, music and other forms of digital content while delivering the purchased content seamlessly to the retail store for production of finished products such as prints, CD's and DVD's in as little as one hour. Additionally, for media such as music, games and mobile content, the retailer's consumer has the ability to purchase the product online and download to their home computer.

The first PhotoChannel customer to deploy the PNI Digital Media Platform is Black Photo Corporation, where they now use the enterprise level system to integrate their website, in-store workflow and production processes enabling them to manufacture photo prints in as little as one hour. The new PNI Digital Media Platform for Black's was launched to maintain their leadership position in photofinishing and can be seen at the Black's website located at www.blacksphotocentre.com.

"This is a significant milestone for PhotoChannel," said Peter Fitzgerald, Chairman and CEO of PhotoChannel. "We believe with the full launch of the PNI Digital Media Platform we will be far ahead of the competition in terms of scalability and feature set. The biggest advantage of this launch will be the huge dividends the Company anticipates in its future growth. Any customers that are looking to enter the market today or switch current providers can view PNI as the company with the most up-to-date and complete solution. Furthermore, as we layer on music and games, the return on investment to retailers cannot be matched."

"PhotoChannel has always been good at anticipating market needs and our new platform puts us in a prime position to execute and deliver solutions to meet those needs," said Aaron Rallo, PhotoChannel's Chief Technology Officer. "We did an incredible amount of research including focus groups and usability studies to ensure a great unified front-end user experience that would consolidate various media formats and promote cross selling between the categories. A platform this dynamic in nature, including a robust back end to support high volume distributed fulfillment, took a great deal of work but in the end was well worth the investment. Our ability to offer a complete consumer solution to manage, order and share digital content with retailer differentiation in a supportable, cost effective manner has put us on the leading edge in this space. The task for the Company now is to stay focused and continually grow the platform for our customers."

"We believe PhotoChannel has really hit the mark with their new platform," said Murray Souter, CEO of Black's. "Being first has meant that we have had a great amount of input by working very closely with PNI to bring this to market. We believe our experience as Canada's leading photo specialty retailer has been of significant value throughout this platform's development. We look forward to our continued mutual success."

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 content such as photos, music and games with retailers that have on demand manufacturing capabilities for the production of merchandise in real time. Currently over 8000 retail locations are serviced by PNI Digital Media. Music, Photos, Games, Video, Mobile Content - PNI Digital Media creates transaction opportunities.

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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