PhotoChannel Networks Inc. - Summer Quarter Triples
Orders increased 219% in July - Sept vs same period of previous year
VANCOUVER, B.C.Nov. 2, 2006- PhotoChannel Networks Inc. (TSX - V: PN; OTCBB:PHCHF) ("PhotoChannel" or "Company") the leading innovator of online digital media solutions for retailers, reports that its fourth quarter transaction numbes have continued to grow at triple digit growth over the corresponding period of fiscal 2005.
"PhotoChannel is extremely pleased with its retailers continued growth and the outlook for PhotoChannel has never looked better" stated Peter Fitzgerald, President and CEO of PhotoChannel. "Photo consumers continue to increase ordering both traditional pictures and gifting items from digital images at record levels. The retailer is once again the preferred place to have your digital images printed. The Company is projecting continued record growth, as it enters the last quarter of calendar 2006, which is traditionally the best quarter for all photofinishing retailers."
Business Highlights
- The number of orders delivered during the fourth quarter were up 219%over the fourth quarter of fiscal 2005 and up 49% over the third (proceeding) quarter of fiscal 2006;
- The number of orders delivered in the month of October 2006 exceeded all orders placed during the Company's fourth quarter of fiscal 2005;
- The Company had in excess of $2,000,000 on hand at October 31, 2006;
- Given its current growth and cash on hand, the Company does not anticipate having to go back to the financial markets to raise capital for operational purposes;
- CVS has now connected approx 5,000 locations which now offer the one hour pick up model;
- Wal-Mart Puerto Rico is fully deployed and offering the one hour solution in each of its locations;
- Stop and Shop launched and is now offering in store pickup throughout its 360 US locations;
- The reverse split will result in approximately 26 million shares issued and outstanding;
About PhotoChannel
Founded in 1995, PhotoChannel operates PNI Digital Media to provide services for major retailers, wireless carriers and contentproviders. 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.
The statements that are not historical facts contained in this release are forward-looking statements that involve risks and uncertainties. PhotoChannel's actual results could differ materially for those expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, changes in technology, employee retention, inability to deliver on contracts, failure of customers to continue marketing the online solution, competition, general economic conditions, foreign exchange and other risks detailed in the Company's annual report and other filings. Additional information related to the Company can be found on SEDAR at www.sedar.com
For further information:
Robert Chisholm, CFO, (604) 893-8955 Ext 224,
rchisholm@photochannel.com;
Investor Information: (800) 261-6796
