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Retailers utilizing PhotoChannel and InComm® Fastcard® services can offer their customers prepaid card services with online redemption VANCOUVER, BC – September 26, 2005 – PhotoChannel Networks Inc. (TSX-V: PNI and OTCBB: PHCHF) (“PhotoChannel”) today announced an agreement to integrate Interactive Communications International, Inc.’s (“InComm”) Fastcard, state-of-the-art point of sale activation (POSA) technology, with the PNI Digital Media Platform to deliver a broad array of prepaid services to both companies’ expanding retail customer base. The integration of the InComm’s Fastcard technology into the PNI Digital Media Platform will allow retailers to sell prepaid products for photos, music or games that are then redeemed online through the retailers website delivered by PNI. The customer’s order is then produced and made ready for pickup in-store. Prepaid is another form of payment accepted by most PNI retailers, along with credit cards and pay in-store at time of pickup. “This is another example of PNI’s dedication to the retailers to provide great marketing and merchandising programs to drive orders,” said Peter Fitzgerald, Chairman and CEO of PhotoChannel. “Prepaid services are an ever growing part of our business and we believe that as film sales continue to drop, our retailers will replace shelf space once occupied by film SKU’s with online prepaid SKU’s. Additionally, our PNI Digital Media initiative will enable our retailers to merchandise music and games very effectively in the retail store environment with this POSA technology.” "We are always pursuing new prepaid products to market to our retail customer base and with the growth of online digital content we see a relationship with PNI as a natural fit," said Brian Parlotto, Director of International Sales for InComm. "Prepaid services are quickly becoming a household method for payment and these are no longer confined to the telecommunications industry." 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. For more information please visit www.pnidigitalmedia.com. About InComm InComm has provided leadership in prepaid products and services since 1992. Its Fastcard® point of sale activation technology supports a suite of prepaid retail services including wireless; long distance; music downloads; wireless games and ring tones; software downloads; prepaid subscription services; prepaid financial services and many more to over 70,000 stores in North America. To learn more about InComm, visit www.incomm.com. Investor Information: (866) 345-0115 WARNING:
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