Interim Management Statement

Photo-Me International PLC
18 March 2008


                           PHOTO-ME INTERNATIONAL PLC

                          Interim Management Statement

Photo-Me (PHTM.L), the digital imaging company, announces its Interim Management
Statement in respect of the period from 1 November 2007.

The third quarter of the year, covering the period from 1 November to 31
January, is historically the quietest quarter, contributing negatively to the
Group's annual result.

Relative to the corresponding period of the previous year, unaudited revenue for
the three months to 31 January 2008 increased by 6% (Vending 7% and
Manufacturing 3%). On a like-for-like basis, at constant exchange rates and
excluding (small) acquisitions and disposals, the reduction in Group revenue was
1%. This is the net of a 6% increase for Vending and a 15% reduction for
Manufacturing. On a like-for-like basis, Vending revenue increased in two of the
Group's three largest markets of France and the UK & Republic of Ireland, and
fell slightly in Japan. The decline in Manufacturing revenue derived from both
the Imaging Solutions wholesale lab business and the KIS minilab business.

Relative to the corresponding period of the previous year, unaudited revenue for
the nine months to 31 January 2008 is down 1%. This is the net of a 1% increase
for Vending and a 5% decrease for Manufacturing. On a like-for-like basis,
revenue has decreased by 2% (Vending - increase 1%, Manufacturing - decrease
11%).

As a result of pressures on gross margins, the pre-tax profit (disregarding
exceptional items and a business discontinued in April 2007) for the nine months
to 31 January 2008 is very significantly lower than that for the comparative
period to 31 January 2007. However, Vending EBITDA remains substantial. The
Trading Statement issued on 7 March 2008 stated that, at the end of the third
quarter, unaudited revenue and pre-tax profit were behind the Board's
expectations.

At 31 January 2008, net debt totalled £47.7m. This compared with net debt of
£33.6m at 31 October 2007. The increased indebtedness reflects, in the main, the
payment of the final dividend of £5.0m on 2 November 2007 together with further
substantial investment in photobooths. The upgrading of the photobooth estate is
now almost complete.

Since 1 November 2007, the following Board changes have taken place. On 30
November 2007, Serge Crasnianski resigned as Group CEO, being replaced by
Thierry Barel. On 13 December 2007, Serge Crasnianski resigned as a Director. On
14 December 2007, Thierry Barel was appointed a Director. On 31 December 2007,
Dan David resigned as a non-executive Director. On 25 February 2008, Jean-Luc
Peurois (Group Finance Director) was granted medical leave of absence for some
months, during which time Simon Poulton will act as Interim Group Finance
Director.

Prospects for the year to 30 April 2008 remain as set out in the Trading
Statement of 7 March 2008, with the Board continuing to believe that the Group
is unlikely to make a pre-tax profit (before exceptional charges) for the year.


Enquiries:

Photo-Me International                              01372-453 399

David Young (Chairman)

Thierry Barel (Group CEO)

Simon Poulton (Interim Group Finance Director)


Bankside Consultants

Charles Ponsonby                                   020-7367 8851 / 07789-202 312



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