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PhotoChannel Networks Inc. & m-Qube Enable Superior Convenience for Retailers and CustomersVANCOUVER, BC – September 19, 2005 – PhotoChannel Networks Inc. (TSX-V: PNI and OTCBB: PHCHF) (“PhotoChannel” or the “Company”), one of North America’s leading digital imaging technology providers, today announced it has signed an agreement with m-Qube, a leading provider of mobile distribution services, to enable mobile messaging and additional services for retailers and their customers. By integrating m-Qube’s platform with the PNI Digital Media Platform, PNI’s retail customers, including Black Photo and Wal-Mart Canada, will be able to send SMS (or “text”) alerts to customers’ mobile phones to let them know that their orders are ready. This partnership will enable additional services, including allowing customers to proactively check the status of their orders; share images stored within PNI retailer photo sites with other mobile users; and distribute software necessary to order pictures through their mobile phones. In addition, the partnership will allow retailers to send permission-based marketing messages to their customers’ mobile phones. “We chose m-Qube to be our partner as they can deliver services across all carriers in North America, as well as help us to develop and deliver novel solutions for our large retail customers,” said PNI Chairman and CEO Peter Fitzgerald. “With online digital print orders now available as a one hour service, the need for dramatically improved retailer/customer communications requires mobile messaging. In addition, the new services will allow PNI and our retail customers to tap into the sizable, latent revenue opportunity of delivering images from online photo accounts to mobile users’ handsets and having the charges for these services appear on their monthly phone bills. We literally have Terabytes of images stored in customer accounts that right now can only be shared via prints, email and from PC to PC. The revenue generated from the ability to share and order photos through mobile phones as well as targeted marketing to the retail customers’ phones will add measurable revenue to PNI next year.” “We are excited to be working with PNI — retail customers are a perfect fit for mobile messaging,” said Jeffrey Glass, CEO, m-Qube. “As PNI rolls these features out to their customer base we expect that mobile alerts will become the predominant way for the retailers to notify their customers that their orders are ready. PNI is a leader in the delivery of products and features for retailers. We welcome the opportunity to add their retail customers to the mainstream of mobile messaging.” About m-Qube m-Qube is headquartered in Boston, Massachusetts with offices in Redmond, Washington, Toronto, Ontario and development offices across other major US cities. m-Qube enables world-class companies to build a mobile channel by providing the most comprehensive technology and services available. The company provides a single interface for connectivity, extensive content management expertise, application development, monitoring, billing and cross carrier transport to enable consumer facing companies of all types to offer their customers a wide variety of mobile products including music, images, messaging, games and other mobile applications. m-Qube has the ability to distribute interactive content to more than 200 million wireless subscribers. The company's strategic wireless partners include Verizon Wireless, Cingular Wireless, Sprint PCS, AT&T Wireless, T-Mobile USA, Nextel, US Cellular, Cincinnati Bell Wireless, Dobson Communications, MTS, Bell Mobility, Rogers Wireless, Telus Mobility, Microcell Solutions, SaskTel and Aliant Mobility. For more information, please visit us at http://www.m-Qube.com. 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 content such as photos, music and games with retailers that have on demand manufacturing capabilities for the production of merchandise in real time. Currently over 8000 retail locations are serviced by PNI Digital Media. Music, Photos, Games, Video, Mobile Content - PNI Digital Media creates transaction opportunities. For more information please visit www.pnidigitalmedia.com. Investor Information: (866) 345-0115 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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Copyright © 2006 PhotoChannel
Networks, Inc. All Rights
Reserved. 
