Positive Trading Update

Photo-Me International PLC
02 September 2003


                           PHOTO-ME INTERNATIONAL PLC

                            Positive Trading Update


Following completion of its first quarter's accounts, PMI, the world's leading
operator of photobooths and a significant manufacturer of digital
photoprocessing equipment, now anticipates that its results for the year ending
30 April 2004 will be substantially ahead of market expectations.

This reflects the Board's increasing confidence, since the Preliminary
Announcement of 30 June 2003, in improved trading by both PMI's businesses -
Operations and Manufacturing.

   •Operations in France are trading strongly whilst those in the UK and
    Japan are set to recover well, as predicted in the Preliminary Announcement.

   •With regard to Manufacturing, the agreement with Flextronics
    International Ltd, announced on 18 July 2003, will permit output from PMI's
    factory in Grenoble to be supplemented by lower cost units manufactured in
    Poland with effect from the end of this calendar year; the volume
    manufacturing process at Grenoble has continued to improve; demand for
    minilabs continues to exceed supply; and the early success of PMI's April
    2003 re-launch of Gretag's high volume 'central lab' business has been
    sustained.

A further trading update will be given on Wednesday 5 November 2003, the day of
PMI's AGM.

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. PMI's digital minilabs will replace analogue minilabs,
which are incapable of processing digital photographs - a fast increasing
proportion of the market - and are inferior at processing non-digital
photographs.

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.


Enquiries:

Photo-Me International plc                                       01372-453 399
Vernon Sankey (Deputy Chairman)                                  01372-455 544
Serge Crasnianski (Chief Executive Officer)                  00336-11 95 63 63 

Bankside Consultants Limited
Charles Ponsonby                                                 020-7444 4166


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