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PNWIF PhotoChannel Signs Agreement with Hallmark Cards PLC

Internet Wire via COMTEX

May 6, 2008 5:00:37 AM

PhotoChannel to provide and operate Online Card site for Hallmark in the UK

VANCOUVER, BRITISH COLUMBIA, May 06, 2008 (MARKET WIRE via COMTEX News Network) --

PhotoChannel Networks Inc. (TSX VENTURE: PN)(OTCBB: PNWIF) ("PhotoChannel" or "PNI") the leading innovator in online digital media solutions for retailers announces that it has signed a three year agreement with Hallmark Cards PLC ("Hallmark"), a division of Hallmark Cards, Inc., to provide and operate an online greeting card site for Hallmark and their customers.

This new online offering combines PhotoChannel's PNI Digital Media Platform with a new Flash based greeting card builder customized for Hallmark. When the service launches later this month it will allow consumers to select from and completely customize thousands of Hallmark card templates. The consumer may also choose to add their own personal digital images or use those provided. The text edits are displayed in real-time and the size and color of the font can be changed at the user's discretion. The finished card can be quickly and easily previewed and upon completion, the PNI Platform renders the card for final output and delivers it to the Hallmark approved production facility. The printed card is then delivered to the recipient via mail. The service also includes features which allow the purchaser to create a whole years worth of cards for different occasions and the cards will automatically be created and mailed to the intended recipient on the pre-selected date.

"The new card builder we have created delivers Hallmark a best in class solution that will allow them to merchandise and sell their vast card content online," says Peter Fitzgerald, Chairman and CEO of PhotoChannel. "Once again we have leveraged the versatility of our platform to deliver a product which may or may not include photos, while allowing complete consumer input and creating an online transaction. The market is starting to understand that PNI is much more than just the front end - our underlying power is in the transport and transaction layer of our platform. We are pleased to be Hallmark's partner in the UK."

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 online platform, along with kiosk software provided by its wholly owned subsidiary, Pixology Software Limited, connects consumer ordered digital content with retailers that have on-demand manufacturing capabilities for the production of merchandise. PNI Digital Media generates transactions for retailers and their thousands of locations worldwide including Wal-Mart, Sam's Club, Costco, CVS/pharmacy, Tesco and Boots. For more information please visit www.pnidigitalmedia.com.

Contacts: PhotoChannel Networks Inc. Mr. Kyle Hall [phone] ext. 313 PhotoChannel Networks Inc. Ms. Niti Maini [phone] ext. 313 Email: [e-mail] PhotoChannel Networks Inc. Investor Information 1-800-261-6796 Website: www.pnidigitalmedia.com

SOURCE: PhotoChannel Networks Inc.

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