PMI Sells Several HundredDKS

Photo-Me International PLC
18 September 2000


 PMI SELLS SEVERAL HUNDRED DKS DIGITAL MINILABS TO KODAK

               Repeat sales a possibility
                            
Photo-Me International plc of Bookham, Surrey, UK (PMI)
has signed a three year OEM agreement with Eastman Kodak
Company of Rochester, New York, USA (Kodak) to supply
several hundred of its newly-launched DKS (Digital KIS
System) photo development minilabs, for sale by Kodak as
System 88 in parts of Asia.  This rapidly growing area
represents approximately 12% of the world market for
minilabs and offers high potential for digital products.

PMI expects to complete delivery of the initial several
hundred Systems 88 in the next 12 months.  After that,
PMI is committed to supply Kodak with whatever Systems 88
it needs to meet market demand.

From PMI's perspective, we see this as a long-term
strategic partnership, said Serge Crasnianski, PMI's CEO.

Kodak's Director of Digital Retail Systems, Rick Rommel,
said, Our strategy is to distribute the System 88 in Asia
during our initial roll-out.  After that, we anticipate
strong demand and will consider other markets appropriate
for the technology.  PMI's Board estimates the world
market for minilabs at over 150,000 units, three-quarters
of it in the USA, Japan and Europe.  Kodak and PMI should
capture a substantial proportion of this valuable global
market.

The contract underscores the acceptance of PMI's patented
LCD (Liquid Crystal Display) booster technology, which
translates digital information into an image.  Relative
to the rival laser technology, the LCD booster technology
has important advantages in terms of quality,
reliability, serviceability, size and price.  This
technology also has applications outside photography, for
instance in the area of printing.

DKS minilabs, which have a UK unit retail price of
£80,000 + VAT, process optical as well as digital inputs
(such as flash memory cards, floppy disks, CD-Roms and
Internet), produce consistently high quality images with
silver halide paper, are user friendly and inexpensive to
use and support an on-line service via the Internet.  The
ability to develop, store and share photographs via the
Internet will have a profound effect on photography.
Over time, virtually all images will be touched by
digital technology, either capture, processing and
sharing, or output.

System 88 units, like the DKS minilabs, are being
manufactured by Photo-Me at Grenoble (France).

Serge Crasnianski, CEO, stated, This OEM relationship
with Kodak is significant.  With its patented LCD booster
technology, PMI is now firmly established as a technology
manufacturer sought after as a partner by major global
corporations.

                            
Enquiries:

Photo-Me International plc                  01372-453399
  Serge Crasnianski (CEO)

Bankside Consultants Limited               020-7220 7477
 Charles Ponsonby