Update on minilab manu.

Photo-Me International PLC
11 May 2004

                           PHOTO-ME INTERNATIONAL PLC
                                      

             Update on minilab manufacture and Digital Media Kiosks
                                        
PMI, the specialist digital imaging company focusing on professional
laboratories and end-consumer vending solutions, is pleased to provide an update
on two aspects of its business with particular potential - the manufacture of
minilabs and the operation of Digital Media Kiosks. Fundamentally, both are
progressing well and the transfer from analogue to digital technology in
photography is accelerating, to PMI's advantage.

Minilab Manufacture

Despite a slower than anticipated start in January and February 2004 to the
production of minilabs through PMI's sub-contractor Flextronics in Poland, with
the addition of minilabs manufactured in Grenoble, more minilabs were sold in
the second half of 2003/04 than the first half and the total for 2003/04 is
approximately double that for 2002/03.

Production in Poland has increased substantially since March 2004 and demand for
minilabs remains strong, due to the quality of the products, as evidenced by the
(previously announced) award of the DIMA minilab prize at the last PMA Show in
Las Vegas in February 2004, uniquely, for the second consecutive year.
Consequently, our forecast for 2004/05 shows a very substantial increase in the
number of machines sold.

Operation of Digital Media Kiosks

Plans for Digital Media Kiosks, capable of printing from both digital cameras
and digital camera phones whilst offering vending machine convenience, remain on
track.

Following successful trials over almost two years involving 265 units, mainly in
Continental Europe, the roll-out of Digital Media Kiosks will commence this
month and we are confident that we will have installed about 1,500 machines
before the end of June 2004.

Enquiries:

Photo-Me International plc                                       01372-453 399
Serge Crasnianski (Chief Executive Officer)
Jean-Luc Peurois (Group Finance Director)

Bankside Consultants Limited
Charles Ponsonby                                                 020-7444 4166




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