PhotoChannel to Unveil New Technology and Services at PMA

Market leading network provider to showcase new technology and services to current and future customers.


VANCOUVER, BC – February 18, 2005 – PhotoChannel Networks Inc. (TSX-V: PNI) (“PhotoChannel”) today announces a series of product improvements and new product offerings to the PhotoChannel Network – the industry’s most advanced solution for ordering digital pictures online. The new initiatives include, Online to In-store digital printing as a One Hour Service, PhotoChannel Lab Control Center for monitoring all in-store photo lab operations, design and usability enhancements to the front-end of the Network, accepting Video files from Camera Phones into our Network, and as announced on February 17th, PhotoChannel WiFi Mobile Printing.

PhotoChannel will showcase its new technology and services at the Photo Marketing Association PMA 2005 Annual Convention, February 20 through 23, at the Orange County Convention Center in Orlando, Florida. PhotoChannel is located at booth number 2663.

“The PhotoChannel technical team has worked incredibly hard to deliver the industry’s most advanced solution for ordering digital pictures online,” stated Bart Copeland, PhotoChannel President and CEO. “The addition of our new CTO, Aaron Rallo, is paying huge dividends already as he leads our product development team to innovate and leverage our existing technology to creating compelling digital solutions that will set us apart from our competition. PhotoChannel’s current and prospective customers will be briefed on these new features and services at next week’s PMA show in Orlando. The consumer will be able to use them as soon as they are incorporated into retailers’ systems in the next several months.”

New Technology Highlights

PhotoChannel Online to In-store Printing - One Hour Service
PhotoChannel technology that has allowed the company to pioneer in-store same day or multi-hour printing to transact online orders is now being redeployed to reflect the industry need to offer online to in-store printing in less than one hour. The one hour service is being driven by multiple technical initiatives, including new software features such as the PhotoChannel LCC (see below).

PhotoChannel Lab Control Center (LCC)
PhotoChannel is developing a new central monitoring program that provides retailers with comprehensive data on in-store photo activity, along with the ability to access PhotoChannel’s systems and other 3rd party hardware systems, including participating digital minilabs. The PhotoChannel LCC will decrease the retailer’s support costs through advance notification of potential problems, while at the same time increasing customer service by delivering real time information as to the status of the location printing the order and the exact status by individual order. With PhotoChannel LCC, if a one hour printing location is extremely busy and can’t meet its one hour commitment, the customer will have the option to choose from another nearby location.

Web Interface Design and Usability
PhotoChannel has commissioned web design firm Sapient to review and analyze the current PhotoChannel Network website workflow and design. Sapient will use its in-house expertise, focus groups and consumer testing forums to provide PhotoChannel with recommendations on future direction and enhancements to the world class web experience currently provided to PhotoChannel retailers and their end user customers. Coupled with this usability study will be the development and launch of several new, unique photo product initiatives already contracted for by PhotoChannel network retailers.

PhotoChannel Mobility – New Video Capabilities
PhotoChannel has enhanced its offering of camera phone features available for use by wireless carriers and retailers with the introduction of video capabilities. Through PhotoChannel’s technology, camera/video phone customers can now save video captured with their wireless handsets to their personal and secure online album on the carrier or retailer website. From the online album, clients can view the video, store it in their online account or share it with anyone with an e-mail address. TELUS Mobility has already launched this service to millions of customers across Canada.

PhoPhotoChannel WiFi Mobile Printing
PhotoChannel has launched an initiative it calls PhotoChannel WiFi Mobile Printing. This new WiFi printing solution allows retailers to receive digital photo orders transmitted from any WiFi-enabled wireless device, including notebook computers, PDAs, camera phones and WiFi digital cameras. PhotoChannel’s WiFi Mobile Printing technology is designed for any WiFi device to automatically discover, authenticate and transmit photos directly to PhotoChannel Network photofinishing retailers for printing.

The TSX Venture Exchange has neither approved nor disapproved the information contained in this release. Investor Information: (866) 345-0115 WARNING: The Company relies upon litigation protection for "forward-looking" statements.