International expansion plan

Printing.com plc
14 November 2005




FOR RELEASE                          7.00 AM                   14 November 2005

                                Printing.com plc

                       ('Printing.com' or 'the Company')

 Specialist retail chain with over 140 Outlets (open or pending) across the UK

    
     PRINTING.COM TO OFFER MASTER FRANCHISES TO FUEL INTERNATIONAL EXPANSION

Today at the IPEX 2006 Press Inward Mission Tony Rafferty, Chief Executive of
Printing.com, will outline the Company's international strategy for expansion.

Printing.com's strategy for its international roll out embraces the following
key terms:-

    * the granting of Master Franchises to established commercial printers 
      overseas at an initial licence fee of between £170,000 and £510,000;

    * an ongoing royalty of approximately 3% of Total Retail Sales

    * a royalty of approximately 20% of local Printing.com licence fees

The strategy for expanding the Printing.com model outside of the UK & Ireland,
is based on the granting of Master Franchises, usually on a country by country
basis, to established commercial printers overseas.

By adopting a Master Franchise, instead of setting up a wholly-owned foreign
subsidiary, each new venture should eliminate start-up losses and contribute to
both profit and cash generation from the outset of each agreement. By partnering
with an established commercial printer, with production infrastructure in place,
the significant delays of, and capital costs in, establishing a national print
hub will be avoided; allowing for a faster rate of lower risk international
expansion.

It is believed that there are many commercial printers around the world, capable
of producing work to the Printing.com standard, that have significant
over-capacity. Such printers may be operating in the general full colour print
market, and are probably suffering from the widely reported margin erosion, or
they may be operating within a niche market, such as, for instance, the printing
of CD covers, and are now facing the challenges of declining sales.
The most recent 'Print Week' survey of the UK's 500 largest commercial printers,
reported that the average pre-tax profit as a percentage of turnover of UK
printers was 2.6%, compared with the 14% margin Printing.com reported in its
last audited accounts. Printing.com believes that similar market conditions may
be reflected in many other countries.

Accordingly, it is the intention to market the Printing.com Master Franchise in
other countries to commercial printers who are seeking to diversify. It is
believed that the impressive growth in Printing.com's earnings and its higher
pre-tax profit margins in comparison to the sector will be the 'carrot' for
Master Franchisees wishing to replicate this success within their home market.
The Master Franchisees would initially be able to operate the Printing.com
franchise in tandem with their existing operations, if they so choose. This
flexibility will enable them to generate additional revenues without necessarily
having to invest in additional plant.

The Master Franchisee will be charged an initial licence fee in the range of
£170,000 to £510,000, reflecting both the value in the grant of the licence and
the expense incurred by Printing.com in providing local support to the Master
Franchisee. Certain larger countries, such as the USA, may be developed by
dividing the country into several regional Master Franchises.
Thereafter, a royalty will be charged on an ongoing basis of 6% of Transfer
Price (equivalent to approximately 3% of the Master Franchisee's Total Retail
Sales).

Following the well-established UK model, Master Franchisees would have the right
to eventually grant Bolt-on and Territory Franchises in their own franchise area
enjoying the associated licence fees and paying Printing.com a royalty of
approximately 20% of the net licence fees.

In return for the fees and royalties paid by the Master Franchisee, Printing.com
would make available all of its marketing and operational methodologies and
collateral, grant a licence to use the brand and, very importantly, the use of
Flyerlink, Printing.com's proprietary software that enables the entire process.
Printing.com believes, that the licence fees and royalties represent exceptional
value, compared with the expense that would be incurred in replicating the
entire process and Flyerlink software. In addition the benefit of speed to
market that a Master Franchise offers should not be ignored.

Initially, a Master Franchisee will be required to deploy a number of key staff
to the UK for a period of time until these team members achieve a defined
Competency Level: only then would local Printing.com operations commence. A
Master Franchisee must then open and successfully operate two Stores prior to
the commencement of the local franchising roll-out. It is intended that this
structure will equip the local franchisee to operate the Printing.com business
effectively, without prejudice to the Company's UK and Ireland operations.
Master Franchisees will be selected if they can demonstrate production
capabilities and surplus capacity sufficient to allow them to produce locally
the Printing.com product range. A Master Franchisee will also need to
demonstrate sufficient management depth and financial robustness.

Whilst the international strategy assumes the granting of Master Franchises to
existing commercial printers certain alternative routes may also be exploited
including Management Buy-Ins/Buy-Outs or local Venture Capitalists funding
Printing. start-ups.

Printing.com has already held a number of preliminary discussions with potential
Master Franchise partners, but these discussions are still at a very early stage
and may or may not progress any further. Further announcements will be made as
appropriate.

For further information:

Printing.com plc
Tony Rafferty (Chief Executive) 07966 517 336
Alan Roberts (Finance Director) 0161 848 5713


Beattie Financial

Brian Coleman-Smith / Nia Thomas / Grace Dewhurst 020 7053 6400




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