Trading Statement

Photo-Me International PLC
18 January 2001



                          PHOTO-ME INTERNATIONAL plc

                       TRADING UPDATE/IMPAIRMENT REVIEW

Trading update

The Board of PMI will be announcing its Interim Results for the half year
ended 31 October 2000 on Monday 29 January 2001. At that time, it will
reiterate its current belief that the trading results for the year ending 30
April 2001 will be broadly in line with market expectations.

Nevertheless, the Board will also announce that trading for the half year
ended 31 October 2000 has been adversely impacted from the expected result, by
approximately £3 million, primarily as a result of the fuel and transport
infrastructure disruption in France and the UK during September and October,
which is a major selling period for PMI's photobooth operations.

Impairment review

Currently, PMI has some 20,000 photobooths in operation worldwide. Of these,
12,000 are new digital technology and 8,000 are old analogue technology.

Increasingly in the developed world, digital technology is becoming the
standard and is finding favour with customers. Increasingly too, the use of
new digital technology is to the commercial advantage of PMI. In particular,
PMI's digital minibooths, first manufactured at the beginning of 2000, are
less expensive to produce, are cheaper and easier to maintain, and occupy only
half the space of an old technology photobooth.

As a result of the above and particularly in the light of the trading
experience in the last months of 2000, PMI decided to conduct an impairment
review of its stock of old technology analogue photobooths.

Following this review, which has just been completed and examined by PMI's
joint auditors, Ernst & Young and Menzies, an adjustment of £18.1 million will
be made against the written down value of older generation photobooths (which
at 30 April 2000 were included in the Group balance sheet at a written down
value of £33 million). In addition, a write-down of related stocks and property
of £4.2 million has been made, with a further £1.8 million in respect of
development costs of analogue minilabs.

The total £24.1 million impairment provision, which is a non-cash item, will
be treated as an exceptional item in the 2000/01 Interim Results.


                                   - ENDS -

Enquiries:

Photo-Me International plc                                         01372-453399

Jean-Luc Peurois (Finance Director)

Robert Lowes (Company Secretary)

Bankside Consultants Limited                                    020-72 20 74 77

Charles Ponsonby