Breaking News On PhotoChannel Networks (OTC BB: PHCHF) :: PhotoChannel Networks, Inc. (PNWIF)

Newsletter

January 22, 2001

Volume IV, Issue 6

Email : info@otcjournal.com
URL : http://www.otcjournal.com

To OTC Journal Members:

Breaking News On PhotoChannel Networks (OTC BB: PHCHF)

Our weekend edition was devoted to PhotoChannel Networks, a stock we covered in 2000 which we felt was ready to turn back up after dropping from $1.6875 in September to a recent low of $.22.

As we write this update the stock is rebounding nicely, trading at $.44 (up 40%), from $.31 at Friday's close on huge volume (over 1 million shares).

One contributing factor to the surge in the stock had to be the news release which the company issued just prior to this morning's open. PhotoChannel announced today announced that the Photographic Research Organization Inc., a cooperative group of North America's leading independent photo specialty retailers representing over 400 store front locations nationwide, has issued a letter of intent to select PhotoChannel to develop and deploy the PRO Online Imaging Network in conjunction with The PhotoChannel Network.

This news release demonstrates wide acceptance of PhotoChannel's concept to build a nationwide network for digital photography developing and distribution. With Wolf Photo and Moto Photo already on board to use the network, this announcement enhances the company's future prospects.

Over the weekend we felt a good short term target for the stock was $.50. This announcement probably raises the bar into the $.625 range.

Here is the complete text of the news release for your review:

Monday January 22, 8:45 am Eastern Time
Press Release
SOURCE: PhotoChannel Networks Inc.

North America's leading independent photo specialty retail cooperative group selects PhotoChannel Networks Inc. to deploy PRO imaging network Addition of Over 400 Stores Brings PhotoChannel Network Membership to Over 1360

STAMFORD, CT and VANCOUVER, BC, Jan. 22 /CNW/ - PhotoChannel Networks Inc. (ME: PNI - news; OTC-BB: PHCHF - news; "PhotoChannel"), a global, open and secure digital imaging network company, today announced that the Photographic Research Organization Inc. (PRO), a cooperative group of North America's leading independent photo specialty retailers representing over 400 store front locations nationwide, has issued a letter of intent to select PhotoChannel to develop and deploy the PRO Online Imaging Network in conjunction with The PhotoChannel Network.

As a member of The PhotoChannel Network, a participating retail store location with a digital minilab will be able to process and print orders it receives for photo prints over The PhotoChannel Network. PRO members will have their own branded, unique photo sites where they can upload their customer's pictures for viewing, editing, sharing and reorder. PRO members' customers can also upload their own digital camera images to PRO member web sites allowing them to order prints from the PRO member location. PhotoChannel will list each PRO member as a print fulfillment member of the Network and will make available to customers of PhotoChannel and other members of The PhotoChannel Network the option of ordering prints and other photofinishing products from PRO member stores.

The solution provided to PRO comprises the entire PhotoChannel photo e- commerce software suite, including facilities for uploading and downloading image data via the Internet, utilizing PhotoChannel's version of the Genuity/Nortel Virtual Private Network technology, and generating print orders on demand at any PRO member location with digital printing capability.

"We are very pleased PRO has chosen the PhotoChannel Network technology and business model as the right one for their members to extend their digital operations into the future," stated Geoffrey G. Briant, CEO of PhotoChannel. "The PRO members are marquee partners we look forward to working with. The PRO decision is an endorsement of the openness of the fast growing PhotoChannel Network solution as the platform of choice for leading edge retailers."

Mike Worswick, President of PRO added: "As the umbrella organization for our owner/operators who are the acknowledged industry leaders in pioneering new photo services for their customers, we wished to further expand our members offering of digital products and services. Our members expect to be the leader in bringing new features and services to their customers and with the PhotoChannel solution we have ensured those same customers will be satisfied well into the digital future. It came down to the business model for us. PhotoChannel offered everything we were looking for in terms of technology under a model perfect for our members' business. The PhotoChannel Network will set the trend of the future of photofinishing."

ABOUT PRO

The Photographic Research Organization Inc. (PRO) was founded in 1958 by a small group of photo dealers for the purpose of fostering the growth of the specialty photographic retailer. From those humble beginnings, PRO has grown into a comprehensive member owned marketing organization that includes more than 140 of the top photo specialty retail companies in the United States. PRO members are focused on enhancing the strength of the independent photo retailer through innovative marketing and leading edge technology.

ABOUT PHOTOCHANNEL NETWORKS INC.

PhotoChannel is an e-commerce and Internet infrastructure company catering to members of The PhotoChannel Network to meet the needs of their film and digital photography customers.

The Company's PhotoChannel website is also syndicated for online portals and communities where online photo print services for consumers are required for both conventional film and digital photographers. Syndicated sites feature the PhotoChannel website features available at www.photochannel.com including Preview, Edit... THEN Order Prints; photo sharing as photosites, albums and shows; extensive photo news and information services; and, online shopping for cameras, accessories and supplies.

THE PHOTOCHANNEL NETWORK is a global, open and secure digital imaging network linking consumers directly, or through syndicated sites at online portals and communities, to members of The PhotoChannel Network with digital minilabs and digital photo kiosks.

PhotoChannel(TM) is a registered trademark of PhotoChannel Networks Inc. All products and company names mentioned are trademarks or registered trademarks of their respective companies.

     PhotoChannel Networks Inc.
     Per:
     Geoffrey G. Briant
     Chairman & CEO

PhotoChannel Networks, Inc.
Certain statements in this announcement, including statements concerning PhotoChannel's plans, intentions and expectations, contain "forward-looking statements" within the meaning of the Securities Act of 1933, as amended. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. These statements are not guaranties of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date of this announcement. Factors that could affect PhotoChannel's actual results, include, among others, PhotoChannel's recent change in business focus, anticipated losses, unpredictability of future revenues, potential fluctuations in quarterly operating results, unproven business model, ability to make additional acquisitions, risks related to acquisitions, achieving adequate market share, brand awareness, competition, risks of maintaining and creating new business relationships, management of potential growth, risks of system interruption and risks of international operations. More information about factors that could potentially affect PhotoChannel's actual results is included in PhotoChannel's filings with the Securities and Exchange Commission including the Form 20-F related to PhotoChannel. PhotoChannel undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.

For further information

PhotoChannel Contacts: Corporate Contact: Melvin R. Reeves, Tel: (203) 667-0002, mreeves@photochannel.com, www.photochannel.com
Investor Contact: The Investor Relations Group, Tel: 1-800-444-9214, (604) 689-5255, photochannel@invrel.com, www.irgnews.com

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