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PhotoChannel Signs New Contract with Wal-Mart Canada

VANCOUVER, BC – June 28, 2005 – PhotoChannel Networks Inc. (TSX: PNI and OTCBB: PHCHF) (“PhotoChannel”) today announces that it has signed a new contract with Wal-Mart Canada (“Wal-Mart”) to provide and operate the Wal-Mart and SAM’S CLUB Online Photo Services. The new contract is initially for two years with automatic one year renewal provisions. The Wal-Mart Online PhotoCentre is located at www.walmartphotocentre.ca and the SAM’S CLUB Online PhotoCentre is located at www.samsclubphotocentre.ca. Both of these destination websites allow for digital camera owners to order prints and gifting items from their digital images. The service allows users to easily and effortlessly place orders for prints, greeting cards, calendars and other photo gift items and pick them up at the closest location. At most locations this service is now available as a same day service.

The Wal-Mart and SAM’S CLUB Online PhotoCentre sites are designed for ease of use, with simple step-by-step instructions. Most tasks are completed with three easy clicks. The sites offer photographic prints from digital camera images ranging in size from 4x6 to 12x18 in either glossy or matte finish with optional borders, as well as, a great variety of photo products, including large format prints, photo calendars, greeting cards and gift items from mugs, to photo “Italian Charms”, to elegant photo blankets (extending in size from throw blankets to king size bedspreads).

“We are very pleased that Wal-Mart has chosen to continue to entrust its Online Photo Services to PhotoChannel,” stated Peter Fitzgerald, Chairman and CEO of PhotoChannel. “To reinforce the relationship for another two years just as the current contract has entered its renewal option period reaffirms a relationship that has been most rewarding for both companies. With the digital printing market now hitting mainstream, we look forward to the continued phenomenal growth of online print ordering.”

Investor Information: (866) 345-0115

WARNING: The TSX Venture Exchange has neither approved nor disapproved the information contained in this release. The Company relies upon litigation protection for "forward-looking" statements.

 

 

 

 

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