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PhotoChannel Networks Inc. extends beyond Online Photofinishing to Uncover the Future of Online Digital Media at PMA 2006PNI looks to increase the profitability of retail Photo Labs by combining Online Digital Music purchasing with the production of music CD’s in one hour VANCOUVER, BC – February 23, 2006 – PhotoChannel Networks Inc. (TSX-V: PNI and OTCBB: PHCHF) (“PhotoChannel” or the “Company”) the leading innovator in online digital media solutions for retailers plans to make an impact at the upcoming PMA trade show to be held February 25 - March 1, 2006 in Orlando, FL. This year, PhotoChannel will broaden its trendsetting PNI Digital Media Platform into Online Digital Music. At PMA, PhotoChannel will be showcasing to retailers how they can utilize the PNI Digital Media Platform to be at the core of all online digital media transactions. “We believe the online photo industry will become more closely tied to all forms of digital media entertainment and the PNI Digital Media Platform offers retailers with photo operations the ability to provide these services to their customers,” says Kyle Hall, EVP for PhotoChannel. “Convergence of digital hardware devices will make all these different media aspects reside alongside each other at the device level, for example, today it is digital music players, digital cameras, PDA’s, smart phones and PC’s – tomorrow it will also include your game console, your HDTV and your DVR. Having the retailers be able to produce on-demand media products that range from music to photo’s will allow them to retain their control of the vast majority of sales in these media channels.” In a competitive industry, where innovation is the key to success, PhotoChannel has taken up the challenge to provide retailers with the ability to push beyond photos to on-demand production of other media products. “Our goal is to convert the traditional retail online photo site into a cross media environment for the ordering of photos and music,” adds Hall. “We will take the traditional photo site, which has the capabilities to process photos and other related photo merchandise, and combine it with the ability to order music and other content, such as videos and games, for on-demand production on a CD or DVD within an hour – all new revenue streams for the retailer.” 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. For more information please visit www.pnidigitalmedia.com. For more information, contact: 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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Networks, Inc. All Rights
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