Sub-Contracting Agreement

Photo-Me International PLC
17 October 2005


                           PHOTO-ME INTERNATIONAL PLC

                Sub-Contracting Agreement Signed with Solectron
                      for New Generation Digital Minilabs

PMI, the FTSE 250 digital imaging company, announces that it has signed a
manufacture and supply agreement with Solectron Corporation (NYSE: SLR), a
$10.4bn revenue leading global provider of high-quality electronics
manufacturing.

Under the agreement, whose minimum term is three years, Solectron will
manufacture, principally in Singapore, on behalf of PMI, PMI's new generation
DKS 3 digital photo minilab. Production is expected to start in early 2006, with
volume production commencing in mid 2006. The existing range of DKS 2 digital
photo minilabs will continue to be manufactured by Flextronics in Poland.

Serge Crasnianski, PMI's CEO, stated: 'The agreement with Solectron will permit
manufacture of an outstanding model - in terms of maximum productivity (2,000
prints/hr), maximum format (12'x18') and minimum footprint (10.8 sq ft) - to be
effected at a very keen price.'

Enquiries:

Photo-Me International                                           01372-453 399
Vernon Sankey (Chairman)
Serge Crasnianski (CEO)

Bankside Consultants
Charles Ponsonby                                                 020-7367 8851
                                                 [e-mail]


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