Pixology Launches US Photogift Kiosks At PMA 2006

The new kiosk program is the first to allow US consumers to go beyond 4x6 prints and create personalized gifts from their favourite photos while in-store. Orders will be sent digitally via Pixology's servers for fulfillment by Photo This. Customers will be able to preview gift orders before choosing from a wide range of gifts including: puzzles, posters, greetings cards, t-shirts, mugs and mousemats. Orders can be collected in-store or delivered to a customer's home or specified address within 10 days.

Pixology already provides an in-store kiosk offload gift service in the UK to retailers Jessops and Lloydspharmacy, and is planning to roll out in the US with Duane Reade. Other US retailers have also expressed interest in the PhotoGift kiosks, which are now available on a fully operational, 8-week trial with no obligation on the part of the retailer.

Pixology PhotoGift kiosks have been designed to allow all retailers, across a variety of sectors and locations, to benefit from the huge growth in retail digital printing - up 112% in the US* and 80% in the UK**. Revenue in the U.S. from photo merchandise has ballooned from $15 million in 2002 to an estimated $79 million in 2005, and is expected to grow to $395 million by 2010, according to InfoTrends' preliminary figures.

Key benefits of the new kiosk program include

• Minimal space requirement
• Easy installation with wireless technology meaning no connectivity or IT issues
• No security or privacy issues as the technology runs independent of the retailer's IT networks
• Point of sale materials to promote the service in-store
• Technical support

"Pixology PhotoGift kiosks will allow retailers to offer customers, who are now well versed with using kiosks to obtain their 4x6 prints, a whole range of high margin gifts. Personalized photographic gifts have been available online for some time but this will be the first time they can be accessed in-store in the US, using our unique user-friendly kiosks."

* Source: PMA and Citigroup figures for US market
** Source: Pixology

About Pixology plc:

Pixology is a leading provider of innovative software for the digital photography industry. The group is focused exclusively on this market and has developed software and networks that enable equipment manufacturers and retailers of photo-finishing services to substitute the analogue film environment with the new digital infrastructure.

The company has developed a global reputation as a digital photography software specialist and is rapidly establishing a position as the premier private label retail digital printing solutions provider on both sides of the Atlantic.

Since entering the digital imaging market in 1995, the company has developed technology that enables consumers to print, organise, and share their digital pictures easily. These pictures can be printed at home via the internet or in-store using kiosks.

The company was a winner of the Deloitte Fast 50 Technology Awards in 2004, a ranking of the 50 fastest growing technology companies in London and the South East.

Pixology has also developed and sold Pixology IRISS® (Intelligent Red-eye Imaging Software Solution), believed to be one of the world's first commercially available automatic software solutions for the detection and correction of red-eye in digital photographs and winner of the Technology Systems category of the British Computer Society 2003 Awards.

The company is a participating member of the International Imaging Industry Association (I3A) - the leading global imaging industry association - whose influential members include Agfa, Eastman Kodak, Fuji Photo and Hewlett Packard. Pixology sits alongside these companies on I3A's CPXe networking standards committee.

Lord Young of Graffham, former Secretary of State for Trade and Industry in the UK government and executive chairman of Cable & Wireless, chairs the company. He is joined on the board by Dr Terry Wright, former head of European R&D, Eastman-Kodak Company and the Hon. Peter Benson, former senior partner at PriceWaterhouseCoopers.

Pixology floated on the AIM market of the London Stock Exchange in December 2003 and is headquartered in the UK with sales and support offices in New Jersey, USA and Tokyo, Japan.

For more information on Pixology please visit http://www.pixology.com