Trading Statement

Photo-Me International PLC
02 March 2007



Friday 2 March 2007

                           PHOTO-ME INTERNATIONAL PLC

                  TRADING STATEMENT / STRATEGIC REVIEW UPDATE

Trading Statement

At the Board meeting yesterday of PMI (PHTM.L), the digital imaging company, the
consolidated management accounts for the three quarters to 31 January 2007 were
produced to, and reviewed by, the Board and the prospects for the year to 30
April 2007 were discussed. Although turnover for the three quarters to 31
January 2007 is broadly in line with the Board's expectations at the time of the
Interim Announcement of 18 December 2006, following a disappointing January, the
profit was below the Board's expectations. In addition, prospects for the fourth
quarter have deteriorated. Accordingly, the Board now believes that the pre-tax
profit for the year to 30 April 2007 will be very substantially below its
previous expectations.

By far the most significant part of the shortfall is in minilab Manufacturing,
which is now expected to make a much reduced profit. This reflects an expected
sales shortfall of some 450 units relative to the Board's expectations, as the
Board has now discounted the winning, for delivery in the current financial
year, of a further large contract and expects to make reduced sales generally in
minilab Manufacturing as a result of difficult market conditions. The only other
significant contributor to the shortfall is a one-off projected loss on sale of
Deith, PMI's amusement and gaming machine 60% owned subsidiary, now that a
decision has been taken for its sale.

Vending continues to trade solidly and Imaging Solutions, PMI's wholesale lab
manufacturing business, continues to trade successfully. Therefore, the Board
remains confident of the future of Vending and wholesale lab Manufacturing, as
it is also of its ability to return minilab Manufacturing to prosperity.

Update on Strategic Review

The Board remains committed to a substantial return of capital to shareholders.
The technicalities of this are complex and a corporate reorganisation will be
required. The Strategic Review process continues actively, with the assistance
of JPMorgan Cazenove and Lazard, and shareholders will be updated in due course.

Enquiries:

Photo-Me International                                         01372-453 399
Vernon Sankey (Chairman)
Serge Crasnianski (CEO)
Jean-Luc Peurois (GFD)

Bankside Consultants
Charles Ponsonby                                 020-7367 8851 / 07789-202 312



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