Increased supply of minilabs

Photo-Me International PLC
18 July 2003







Friday 18 July 2003



                         PHOTO-ME INTERNATIONAL PLC

          Substantial increase in supply of digital minilabs scheduled


PMI, which is both a significant manufacturer of digital minilabs as well as the
world's leading operator of photobooths, announces that it has signed an
agreement with Flextronics International Ltd, the $6.2 billion market
capitalisation global leader in electronics manufacturing services, whereby
Flextronics will manufacture in Poland, on behalf of PMI, an initial 1,800 units
of PMI's DKS 1500 digital minilab and its OEM variant for Kodak, the System 89.
Production is scheduled to start towards the end of 2003, at an initial rate of
200 units a month.


Serge Crasnianski, PMI's CEO, stated 'The agreement with Flextronics will both
help PMI satisfy the demand for its range of digital minilabs, which currently
exceeds supply from PMI's own factory in Grenoble, and increase margins'.



Notes for Editors


PMI's range of digital minilabs comprises the award-winning DKS 1500, the DKS
750 and the DKS 550, which are capable of 1,500, 750 and 550 prints an hour
respectively, covering 95% of the market, together with the System 89 and System
88 variants for Kodak.


Volume production of the DKS 1500 and System 89, which are the top-of-the-range
models as well as the largest sellers, started in Grenoble in December 2002 and
roll-out has gradually been increased.


Analogue minilabs are incapable of processing digital photographs - a fast
increasing proportion of the market - and are inferior at processing non-digital
photographs.


Enquiries:

Photo-Me International plc                                  00 33-47 63 33 000                                          
Serge Crasnianski (Chief Executive Officer)

Bankside Consultants Limited
Charles Ponsonby                                                 020-7444 4166





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