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PhotoChannel Posts Record Revenues VANCOUVER, BC May 28, 2006 – PhotoChannel Networks Inc. (TSX-V: PNI and OTCBB: PHCHF) (“PNI” or “PhotoChannel”) reports that the Company has received all commitments and subscription agreements for its non-brokered private placement announced April 20, 2006. Commitments and subscriptions for 27,500,000 units greatly exceeded what the Company initially announced and will result in gross proceeds of $2,750,000. Closing is subject to TSX Venture Exchange and regulatory approval. As announced previously, each unit is being sold at a price of $0.10 per unit. Each unit consists of one common share and one half of one common share purchase warrant. Each whole common share purchase warrant will entitle the holder to purchase an additional common share at an exercise price of $0.15 for a period of one year from the date of closing. The common shares and the common shares underlying the common share purchase warrants, will each be subject to a four month hold period from the date of issuance of the units. Peter Fitzgerald, Director 5,000,000 units “Investor interest in this non-brokered private placement exceeded our expectations”, stated Peter Fitzgerald, Chairman and CEO of PhotoChannel. “This financing will provide the Company sufficient funds for the roll out of new US developments, completion of new product development, including our online music initiative, as well as, strengthening our balance sheet as we continue discussions with other large US retail customers.” The Company will pay a finder’s fee to third parties in connection with this private placement in accordance with TSX Venture Exchange policies. The TSX Venture Exchange has neither approved nor disapproved the information contained in this release. The Securities offered have not been and will not be registered under the Securities Act of 1933 (as amended) (United States) and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. About PhotoChannel Networks 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. Currently PNI Digital Media generates transactions for retailers and their thousands of locations across North America, including Wal-Mart Canada, CVS/pharmacy, Eckerd Drugs and Costco Canada. For more information please visit www.pnidigitalmedia.com 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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