Acquisition

Photo-Me International PLC
19 January 2006


                           PHOTO-ME INTERNATIONAL PLC

              Acquisition of Amusement and Gaming Machine Company

PMI, the FTSE 250 digital imaging company, announces that it has acquired 60% of
Deith Group Limited, one of the UK's leading distributors and developers of
coin-operated amusement and gaming machines.

Deith, which is based in Reigate, Surrey, represents top global manufacturers,
such as Electrocoin, Sega and Taito, and numerous others. Deith also develops
digital gaming machines through its Deith Gaming brand for the international
casino, licensed betting office, pub and arcade markets.

Deith will benefit from new distribution channels through PMI's international
group companies and from PMI's links with sub-contractors in China in terms of
enhanced development and substantial savings in the cost of manufactured
equipment.

In the year ended 31 May 2005, Deith made an audited pre-tax profit of £935,000
on a turnover of £11,546,000. Net assets at that date totalled £1,848,000.

The total consideration comprises initial consideration of some £1.23m,
comprising 1,038,961 PMI shares, with a current market value of some £0.98m, and
£0.25m in cash, with up to a further £0.95m being paid in the form of Loan
Notes, contingent on annual pre-tax profits for the three years (or, if
necessary, four years) commencing 1 May 2006 averaging over £1m.  There is a put
and call arrangement over the remaining 40%, exercisable after eight years, in
normal circumstances.

The trading performance of Deith is weighted towards the first few months of the
calendar year. Its pre-tax profit target for the period from acquisition to 30
April 2006, PMI's year end, is £0.5-0.6m.

Leon Deith and Matthew Deith, who owned 95% of Deith and retain substantial
shareholdings, remain as Joint Managing Directors and have entered into new
service contracts.

Serge Crasnianski, PMI's CEO, stated 'Deith, as a distributor of coin-operated
machines in the amusement and gaming industries, will fit well alongside PMI's
activity as a leading UK operator of coin-operated vending machines. It will
also continue PMI's policy to broaden its activities in the leisure sector,
building upon 2005's two acquisitions which resulted in PMI being, by far, the
UK market leader in the manufacture and operation of kiddie rides.'

Leon and Matthew Deith added, 'We are delighted that Deith Group has become part
of Photo-Me's wider, international business, with all that entails in terms of
opportunities for profitable growth.'

Notes for Editors:

PMI's Vending business comprises the operation of photobooths and other vending
equipment. In the 12 months to 31 October 2005, the total number of PMI's
Vending sites worldwide increased by approximately 6,000 (4,100 coin-operated
kiddie rides) to 33,000, including 20,400 photobooths.

PMI's Manufacturing business principally comprises the manufacture, for sale, of
minilabs and wholesale labs, together with the manufacture, for both own
operation and sale, of digital media kiosks and photobooths. Other than with
wholesale labs, manufacture is effected primarily by sub-contractors in low cost
territories.

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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