PhotoChannel and FUJIFILM Canada Agree to Online Photo Deal

FUJIFILM customers get ready to deploy PhotoChannel's PNI Digital Media

VANCOUVER , June 14, 2007 - PhotoChannel Networks Inc. (TSX-V: PN and OTCBB: PNWIF) ("PhotoChannel") the leading innovator in Online Digital Media Solutions for retailers announces that it has reached an agreement with FUJIFILM Canada Inc. to operate Online Photo Services for FUJIFILM retailers. As part of this agreement, PNI will work with FUJIFILM Canada to immediately start the process of converting the site platform of its key retailers; towards full-completion in the coming months.

"Having this alliance with FUJIFILM further strengthens the reach of the PNI Digital Media Platform and firmly establishes us as the dominant provider of online photo services," says Peter Fitzgerald , Chairman and CEO of PhotoChannel. "FUJIFILM is a world class operation which has shown great ability to generate and sustain digital imaging business as the market accelerates to even greater digital penetration. It is a testament of our abilities and proven solution to have FUJIFILM select us as their key Canadian provider"

"We are working with PhotoChannel to offer our customers the best Online Photo Service available in the industry today," says Michael Finch , Group VP & GM Business Operations for FUJIFILM Canada . "We believe this alliance with PhotoChannel will help us meet our goals of driving online digital printing and photo gifting revenue through our customers."

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, Rite Aid (BrooksEckerd stores) and Costco Canada . For more information please visit www.pnidigitalmedia.com

About FUJIFILM - FUJIFILM Canada Inc. is a wholly-owned subsidiary of FUJIFILM Corporation of Tokyo , one of the world's leading imaging and information product developers and manufacturers. FUJIFILM Canada is based in Mississauga, Ontario, with regional offices in Montreal and Vancouver . A leader in the development of technologies that provide the backbone for state-of-the-art imaging, graphic arts, photofinishing and recording media, and motion picture products, FUJIFILM Canada stands proud as a proven solutions provider. For more information, please visit www.fujifilm.ca .

For further information: Mr. Kyle Hall or Ms. Niti Maini, PhotoChannel Networks Inc., (604) 893-8955 ext. 313, nmaini@PhotoChannel.com; Investor Information: (800) 261-6796; Mr. Kent Hatton, VP, Strategy & Corporate Communications, FUJIFILM Canada Inc., (905) 755-2742, E-mail: khatton@fujifilm.ca