Agreement to Enter MP3 Music Download Business

PHOTO-ME INTERNATIONAL PLC
20 October 1999


 PHOTO-ME AND MUSICMAKER.COM TO INTRODUCE KIOSKS TO SUPPLY CDs
     ON DEMAND AND TO COLLABORATE OVER MP3 MUSIC STATIONS
                               
Photo-Me  International  plc, the world's  leading  photobooth
operator and manufacturer, which increasingly is using digital
technology  and the Internet to broaden its product  offer  in
the  field of communications, announces that it has signed  an
agreement  with  musicmaker.com, the world's largest  Internet
provider  of  licensed music for customised  CDs  and  digital
downloading, together to introduce kiosks permitting customers
to  compile  'make and take'T CDs on a song-by-song  basis  to
their own specifications and to download music directly to  an
MP3 station.

Each  kiosk  will  have  available  5,000-10,000  specifically
chosen  digitized  tracks, covering a wide  range  of  popular
genres  and  artistes, from musicmaker.com's library  of  more
than  750,000  songs  owned by it or licensed  from  EMI  (the
world's  third  largest  record  label),  Zomba  (the  world's
largest independent music group), TVT (the largest alternative
rock  label) and more than 100 other independent labels.   CDs
will be delivered to customers within 5-7 minutes with a jewel
case  and a personalised tray card listing the songs selected.
The  kiosks will also support the popular MP3 format, allowing
consumers to download music directly to a portable MP3 station
containing  an  hour of music in just 2-3 minutes.   Purchases
can be made with cash or credit card.

Initially, on a test basis, five kiosks will be sited  in  the
US  by  15  January 2000 and a further five in  Europe  by  15
February  2000.   If  both  parties agree  that  the  test  is
successful,  it is envisaged that some 5,000 kiosks  could  be
rolled out in a short timescale, with Photo-Me responsible for
design, manufacture and installation.  The kiosks will then be
sited in the main high footfall areas, such as shopping malls,
overground   and   underground  railway  stations,   airports,
cinemas,  theme parks and music shops.  The split of  revenues
and  costs  between the parties will be subject to negotiation
having regard to the results of the test phase.

Additionally, from March/April 2000, musicmaker.com will  test
market  stand-alone MP3 stations, to be located in the US  and
to   be   manufactured  by  Photo-Me.   MP3  stations   permit
individual  tracks and complete albums to be  downloaded  over
the Internet, with very high quality sound.

Notes for Editors:

Photo-Me

Photo-Me  is the world's leading operator and manufacturer  of
automatic  photobooths  for identification  and  entertainment
purposes,  with some 18,300 operated directly in  a  total  18
countries  (including 4,850 in the UK, 4,700 in France,  3,200
in  Japan  and  1,800 in the US).  Photo-Me also  manufactures
photographic  minilab  machines.   More  than  two-thirds   of
turnover is generated overseas.

R&D,  which is focused on digital technology and the Internet,
and  manufacturing are both carried out at Grenoble in France.
In  May  1999,  Photo-Me  signed  an  agreement  with  British
Telecommunications  plc to introduce photobooths  with  e-mail
facilities and Internet access.  Photo-Me's head office is  at
Bookham  in  Surrey, UK.  Its shares are listed on the  London
Stock Exchange.

Musicmaker

Musicmaker.com,  which is based in Reston, Virginia,  USA,  is
the  world's largest provider of licensed music for customised
CDs  and  digital  downloading.  It was  founded  in  1996  by
executives including Robert Bernardi, co-founder of PictureTel
and  TranSwitch, Raju Puthukarai, former President of  RCA/BMG
Music and Video Club and President of Warner Music Media,  and
Irwin  H Steinberg, Chairman and CEO of PolyGram Records  USA.
Since  inception,  musicmaker.com  has  focused  on  marketing
direct-to-consumer  customised  compilations  and   electronic
music  downloads,  through a website since November  1997  and
direct  mail  since February 1998.  Its shares are  listed  on
NASDAQ (code HITS) and EMI is a 40 per cent shareholder.

Enquiries:

Bankside Consultants Limited                     0171 220 7477
Charles Ponsonby