Acquisition

Photo-Me International PLC
17 April 2003



            PHOTO-ME INTERNATIONAL ACQUIRES CENTRAL LABS BUSINESS OF                                        
                          THE FORMER GRETAG IMAGING AG
                                        

PMI, a prominent manufacturer of digital photoprocessing minilabs as well as the
world's leading operator of photobooths, has acquired from the Liquidator, for
SFr 3.0 million (£1.4 million) in cash, certain assets of the Central Lab
Equipment division of the former Gretag Imaging AG ('Gretag CLE'). The business
will continue to operate from premises at Regensdorf, near Zurich in
Switzerland.


Gretag CLE is involved in the development, manufacture, sale and technical
support of equipment and systems for high volume photo finishing laboratories.
Its CYRA system is the most advanced in the market, and the equipment is capable
of processing 13,000 prints an hour. The acquisition will open up to PMI a
sector of the industry in which it has not been represented previously.


Gretag CLE had a 30% share of the worldwide central laboratory equipment market.
PMI expects to generate a turnover of around SFr30 million (£14 million) from
the new business in the coming financial year.


The central labs market is currently moving to digital image processing from
conventional analogue photo finishing. In this segment, Gretag CLE has the only
complete digital solution and is thought to be two years ahead of its principal
competitor for digital printing and scanning systems.


The business unit will be run for PMI by Rainer Bauer, who was formerly head of
Gretag's German subsidiary.


Serge Crasnianski, PMI's CEO, stated 'The acquisition of the world leader in
large scale photoprocessing is a terrific opportunity for PMI. It means that now
our offering will cover the whole market place, with the DKS 550 and 750
addressing the lower end, the DKS 1500 the mid-range and the Gretag CLE
equipment the high volume requirements. Additionally, there will be synergies
between our existing minilab business and the new central labs division in the
areas of research, sales and maintenance.'


Enquiries:

Photo-Me International plc                                        01372-453399
Serge Crasnianski (Chief Executive Officer)

Bankside Consultants Limited
Charles Ponsonby                                                 020-7444 4166



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