Statement re Year End Audit

Photo-Me International PLC
3 August 2000

                  Statement re year end audit

Yesterday, during the finalisation of the annual audit for the
year  ended 30 April 2000, it became apparent that the  profit
arising  from  the  transfer  of assets  as  consideration  in
connection  with the acquisition in July 1999 of the  minority
interest in Nippon Auto Photo KK may not be recognised in  the
profit  &  loss account, but may be treated as a reduction  of
goodwill  in the balance sheet.  Moreover, should this  profit
be  recognised in the profit & loss account, it will be  shown
as  an  exceptional item.  Group cashflow is not  affected  by
this item.

The total amount of profit involved is £10.4 million, of which
£4.5  million  was included in operating profits reported  for
the six months ended 31 October 1999.

The  Directors  are taking advice as to the  most  appropriate
treatment. As a result, the preliminary results will  now  not
be  announced, as planned, on Monday 7 August 2000 but shortly
thereafter.

In  any  event,  the Directors believe that the profit  before
taxation  for  the  year  ended 30  April  2000  will  not  be
significantly  less  than  the  profit  before  taxation   and
exceptional  items reported for the year ended 30 April  1999,
which was £20.0 million.

Enquiries:

Photo-Me International plc                        01372-453399
  Jean-Luc Peurois (Group Finance Director)
  Robert Lowes (Company Secretary)

Bankside Consultants Limited                     020-7220 7477
  Charles Ponsonby