PhotoAccess Catapults Retailers Into Digital Photo Printing And Services Market -- Just In Time For The Holidays

Leading Applications Service Provider delivers turnkey solutions in only three weeks --enables retailers to capitalize on $413M digital photo finishing boon

Seattle, WA, December 11, 2000
PhotoAccess announced today a turnkey solution that enables retailers to offer in-store customers a complete line of digital camera photo finishing services, including quality prints and fun merchandise. PhotoAccess, the leader in digital photo finishing Internet services for retailers and consumers, empowers merchants to capitalize on potential lost revenue while building customer loyalty and long-term relationships.

"Retailers that are not offering digital camera photo finishing services today are losing hundreds-of-thousands-of-dollars, not to mention customer loyalty and long-term market share in the photo finishing category," said Jerry Barber, president and CEO of PhotoAccess. According to IDC, a technology analyst firm, digital camera sales are expected to exceed traditional cameras this year with the number of units sold growing from 10M units in 2000 to 41.6M by 2004. "PhotoAccess is partnering with merchants, rather than competing with them. In just three weeks, retailers can have their own online, e-commerce digital camera photo finishing center, offering customers film quality prints and photo merchandise without the hassle, technology investment, and personnel expense of setting it up on their own."

PhotoAccess is a retail Applications Services Provider (ASP) that supplies drugstores, grocery stores, mass merchandisers, and specialty camera stores with complete digital camera photo finishing solutions. Merchants can now offer their digital camera customers high quality, professional prints of photographs taken with any digital camera. Retailers also receive a branded "photo management, storage, and transaction" Web site, hosted by PhotoAccess. The Web site offers consumers convenient, digital photo management, permanent online album storage, flexible print and merchandise ordering methods, and fast delivery options, including the ability to pick prints up at the store, or receive them by mail.

What Retailers Can Expect
PhotoAccess makes it easy for merchants to leverage the company's three-year proven expertise in delivering, managing, archiving, and printing digital photo images. Retailers can:

• Get Started Immediately. PhotoAccess will have a retailer's branded Web site processing transactions in just three weeks with little up-front cost, no capital investment, and two self-service SKUs that get customers using the service immediately.
• Receive Private-Label Branding, Look and Feel. Each merchant receives their own, branded Web site hosted by PhotoAccess servers.
• Build Customer Loyalty. Retain current customers and attract new ones by guaranteeing film-quality digital prints, and provide the flexibility and convenience of having the pictures delivered rapidly to the store or mailed directly to them.
• Increase Profits and Promotions. Retailers make up to 30 percent profit on a variety of in-store or online, digital film processing, printing, and promotional merchandising services.
• Integrate Now, Migrate Later. PhotoAccess integrates with current wet film photo processing systems, routes images to the retailer's mini-labs for printing, or conducts printing at their own labs -- whichever method fits the merchant's requirements.

The Shutterbug (www.theshutterbugonline.com), an Oregon-based, 20-store camera equipment and supplies retailer is one of the first PhotoAccess retail partners. "Owner, Parviz Samiee says, "We are pleased to be working with PhotoAccess. It brings state-of-the-art digital image Internet services to our customers, while allowing us to maintain the unique relationship we already have with them."

What Digital Camera Owners Receive
Mark Waldin, vice president of marketing said, "Consumers want flexibility in how they purchase, manage, store, and obtain their digital prints and merchandise. PhotoAccess marries the needs and desires of digital camera customers to the convenience, locale and established relationship of their favorite retailers to provide the perfect solution."

Consumers using the PhotoAccess service through their trusted retailer will receive:

• Convenient Prepaid Prints and Free Software. Consumers can purchase pre-paid prints directly from the retailer and also receive a free and convenient copy of PhotoAccess PhotoStreamer™ in the same package. PhotoStreamer makes it fast and easy to manage digital photos on a PC/Mac desktop, automatically upload them to the Web site, create personal and guest albums, and order prints for store pick-up or mail delivery.
• Guaranteed Print Quality and Digital Size Prints. Consumers no longer have to compromise on quality. PhotoAccess guarantees film quality prints for first-time and reordered digital images, and has proprietary software that sizes pictures accurately for digital printing, eliminating ugly borders and unsightly cropping.
• Unlimited Online Storage, Easy Access for Friends/Family. Permanent, free, long-term storage for digital photos with access to native digital files at all times is guaranteed. Fast and easy access to online purchasing of high quality digital prints and fun merchandise such as mugs, t-shirts, calendars, and tote bags are available for customers, family and friends.
• 24 hour Shopping and Customer Support Convenience. Consumers can order merchandise and prints, day or night, at their convenience, all the while receiving friendly, prompt and free customer support for their digital photo management and storage needs.

Pricing and Availability
Retailers interested in PhotoAccess' digital camera photo finishing services can be up-and-running in three weeks. Pricing is based upon individual customer requirements. For more information contact sales@photoaccess.com, or call (206) 264-2488.

Consumer Electronics Show, Booth # 30215/Riviera
PhotoAccess will be exhibiting at CES, January 6-9, 2001, in the Computer/Wireless/Internet section at the Riviera Hotel, in Las Vegas, NV.

About PhotoAccess
Founded in 1998, PhotoAccess.com Corporation is the leading Internet, retail Applications Service Provider of digital camera, photo finishing solutions benefiting retailers and consumers. In three weeks, merchants can have an integrated, flexible, branded, and cost-effective e-commerce Web site, hosted by PhotoAccess, that offers consumers exceptional digital photo prints and merchandise, online image management, permanent storage, ordering, and delivery options. The company is privately held, funded through venture capital firms, and has offices in Seattle, Washington, and Tokyo, Japan. For more information visit www.photoaccess.com or the Japanese Web site at www.photoaccess.co.jp.

Press Contact:

Mark Waldin
VP of Marketing
PhotoAccess
(206) 902-1411
mwaldin@photoaccess.com

Trish Horner
Public Relations
High Tech Options
(425) 503.2502
thorner@gte.net