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HY-Vee Signs Agreement with PhotoChannel Networks for Online Imaging servicesPNI’s Digital Media Platform to provide mid-west US Retailer with online photofinishing capabilities VANCOUVER, BC – February 16, 2006 – PhotoChannel Networks Inc. (TSX-V: PNI and OTCBB: PHCHF) (“PhotoChannel” or the “Company”) the leading innovator of online digital media solutions for retailers announced the signing of an agreement with Iowa based Hy-Vee. Utilizing the new PNI Digital Media Platform Hy-Vee customers are able to place orders for prints online through the Hy-Vee website located at www.hy-vee.com. The ability to place orders online will allow customers to pick up their orders in any of Hy-Vee’s locations. “Hy-Vee has been very diligent in their deployment of this service,” says Peter Fitzgerald, Chairman and CEO of PhotoChannel. “In an industry that is converting rapidly to the digital platform, more and more retailers are in a transition period – converting their operations from print to digital prints. Our Digital Media Platform enables Hy-Vee to compete with all other major retailers.” In this competitive industry, retailers are seeking out PNI’s Digital Media Platform to offer their customers the ease and convenience of online photofinishing. "PhotoChannel offers the capabilities for our stores to be competitive in the market place”, says John Wendel, VP General Merchandise of Hy-Vee. “We strive to put our customers first and we feel this partnership will be a significant advantage for us. Our customers now have a solution to look after all their online digital photo needs.” “As technology evolves we hope to offer other Digital Media Services through our in-store production facilities,” adds Wendel. “The printing of digital images, along with digital content e-commerce, is in a very high growth stage and we feel excited that PhotoChannel will enable us to execute our vision in order to deliver our customers the service they need.” 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, their thousands of locations and millions of customers across North America. For more information please visit www.pnidigitalmedia.com. About Hy-Vee In 1930, Charles Hyde and David Vredenburg opened a small general store in Beaconsfield, Iowa. That store grew to become Hy-Vee – a company known for excellent service and low prices. As an employee-owned company, Hy-Vee encourages each of our more than 49,000 employee-owners to help guide the company. The corporate office is located in West Des Moines, Iowa. Our distribution operations are based in Chariton, Iowa, where we have more than 650,000 square feet of state-of-the-art warehouse space. Our northern division office and another large distribution center are located in Cherokee, Iowa. |
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