Trading Statement

Photo-Me International PLC
28 March 2002


PHOTO-ME INTERNATIONAL plc


                               TRADING STATEMENT


In its Interim Announcement, on 7 January 2002, PMI stated that, in the short
term, its Operations business was unlikely to see any significant improvement in
overall market conditions.  This had led, in the half year ended 31 October
2001, to an 11% turnover decrease in the UK and the Republic of Ireland, a 5%
turnover increase in France and a 23% turnover decrease (of which 10% due to the
weaker Yen) in Japan.  With regard to PMI's Manufacturing business, it was
stated that in the coming months there could be no guarantee of substantial
sales of DKS minilabs on account of economic conditions in the USA.

Market conditions continue to be difficult and the Board now expects that the
outturn for the year from normal trading will be broadly breakeven.  This
principally reflects poorer trading in Continental Europe, in particular in
December and January in connection with the introduction of the Euro (which has
affected a number of vending machine operators), the absence of any recovery in
operations in the UK and Japan, and a lack of major orders for the DKS minilab.
After exceptional write-downs and provisions, a material loss is expected.

In view of this disappointing result, the Board does not intend to propose a
final dividend for the year ending 30 April 2002.

The medium term prospects for PMI's Manufacturing business continue to be very
good.  PMI's DKS 1500 minilab - which is twice as fast as the existing model -
was very well received at the industry's two principal exhibitions of 2002 - the
Photo Marketing Association exhibition in Orlando in February and the MIPS photo
trade exhibition in Paris earlier this month.  However, as was stated in the
Interim Announcement, volume roll-out is not scheduled before this Autumn.


Enquiries

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

Bankside Consultants Limited
 Charles Ponsonby                                               020-7444 4166


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