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PhotoChannel Launches Online Photofinishing Services for Truprint

VANCOUVER, BC – September 27, 2006 – PhotoChannel Networks Inc. (TSX-V: PNI and OTCBB: PHCHF) (“PNI” or “PhotoChannel”) the leading innovator in online digital media solutions for retailers announces that it has reached an agreement with Truprint Ltd. in the UK to operate their online photo ordering systems for Truprint’s retail shops business. The new 1-hour online to instore printing service is now live and is located at http://www.truprintcollect.co.uk.

The agreement with Truprint, the UK’s largest mail order operator, expands PhotoChannel’s customer footprint beyond its current North American and Australian focus into the United Kingdom. PhotoChannel, a leader in providing online photo services for major retailers such as Wal-Mart and Costco in Canada and CVS Pharmacy and Eckerd Drugs in the United States, as well as international customers such as Wal-Mart Puerto Rico, expects to further develop the UK and European markets in the near future. “We are very excited and honored to announce Truprint as a partner,” says Peter Fitzgerald, Chairmen and CEO of PhotoChannel. “The Truprint shops are well known and respected in the UK and we are very pleased to have been selected as their provider.” This new agreement gives Truprint’s customers the ability to upload photos and order prints from the convenience of their homes and pick their orders up in the shop in less than 1 hour.

The PNI Digital Media Platform is fast becoming the service of choice for leading retailers to offer their consumers the ease and convenience of online photofinishing “We are very excited to be working with PhotoChannel,” says Nigel Jeffers, Managing Director of Truprint. “PhotoChannel’s technology solution is flexible and versatile to fit within our business model to allow us to better serve our customers. The roll out of our stores went very smoothly and we are looking forward to driving the business.”

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 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

About TruPrint

Truprint is owned by Harrier LLC and is the leading mail order photofinisher in the UK. In recent years, as the character of the photo market in the UK has changed, it has branched out into Retail and the online space. Please visit us at http://www.truprintcollect.co.uk.