EGM Requisition Response

Photo-Me International PLC
24 August 2007


Friday 24 August 2007

                           PHOTO-ME INTERNATIONAL PLC

                      Board's response to EGM requisition

Yesterday morning, Cycladic Capital LLP ('Cycladic') and Principle Capital Fund
Managers Limited ('Principle Capital') delivered to the Board of PMI (PHTM.L),
the digital imaging company, a requisition to call an Extraordinary General
Meeting of PMI to allow shareholders to vote on resolutions authorising the
immediate removal of Vernon Sankey (Chairman) and Serge Crasnianski (Chief
Executive Officer) as Directors of the Company.

Immediately following receipt of the requisition, steps were taken to convene a
meeting of the PMI Board.

The Board meeting has now taken place. The Board believes that the EGM
requisition is not in the Company's best interests and is unnecessary:
          
     (i)  The Board is striving to manage PMI's business in the interests of 
          maximising value for all of PMI's shareholders. It believes that
          there is a sufficient level of interest for the Vending Division 
          disposal process to move to its next phase and that a disposal would 
          permit the return to shareholders of a significant amount of capital.
          
     (ii) The EGM requisition, if not shortly withdrawn, is likely to jeopardise 
          the Vending Division disposal process and would be extremely 
          disruptive and harmful to the operational management of PMI's business 
          and to PMI's employees.
          
     (iii)Any disposal of the Vending Division would be subject to shareholder 
          approval.
          
     (iv) As Cycladic and Principle Capital are aware, an AGM has already been 
          convened for 17 October 2007, including a resolution for the 
          re-election of Vernon Sankey as a Director.
           
     (v)  Cycladic and Principle Capital are aware that, being aged 65, Serge 
          Crasnianski proposes to retire in the next few months. The appointment 
          of his successor as Chief Executive Officer needs to reflect whether 
          or not the Group then includes the Vending Division, and whilst the 
          search for a successor has been ongoing for some time, with a 
          recruitment company appointed in May 2007, the Board had intended that 
          the process would be scheduled in order to provide an orderly 
          introduction and hand-over of responsibilities when the future shape 
          of the Group was clear.

The Board, however, notes the statement by Cycladic and Principle Capital that
the making of their requisition also had the support of holders of, in
aggregate, a substantial proportion of PMI's shares. Accordingly, with a view to
agreeing an early solution and reducing damaging uncertainty, the Board makes
the following proposals, which it will be discussing with its principal
shareholders, including Cycladic and Principle Capital:
          
     a)   Vernon Sankey will not seek re-election as a Director at the AGM on 
          17 October 2007;
          
     b)   Serge Crasnianski formally announces his intention to retire and will 
          step down as Chief Executive Officer and as a Director as soon as the
          Vending Division disposal process reaches a conclusion and a successor 
          is in place;
          
     c)   a Committee of the Board, under the leadership of Roger Partington and 
          including all the Independent Directors, will select a new Chairman 
          and a new Chief Executive Officer; and
          
     d)   a Committee of the Board, under the leadership of David Young and 
          including all the Independent Directors, will oversee the Strategic
          Review process in the interim.

On the above basis, the PMI Board unanimously believes that Cycladic and
Principle Capital should withdraw their EGM requisition, in the interests of all
of PMI shareholders and specifically in order to allow the Board to focus its
efforts on its succession planning and strategic review initiatives.

Vernon Sankey, Chairman, stated 'The Board is unanimous in its belief that the
continuation of the Vending Division disposal process is the right one at the
moment and that the succession issue must be smoothly managed to avoid further
unnecessary and damaging disruption to the business. The actions we are taking
are designed to do this in a sensible and timely way.'

Enquiries:

Photo-Me International plc                                       01372-455 591
Vernon Sankey (Chairman)

Bankside Consultants Limited (analysts)
Charles Ponsonby                                                 020-7367 8851

Tulchan Communications (media)                                   020-7353 4200
David Allchurch
Wendy Watherston


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