-- Will Offer Free to Photo Sites for Upcoming Holiday Season

PLEASANTON, Calif. - September 4, 2002 - Pixami, the leading developer of online digital imaging products, today announced that it would begin offering complete printing fulfillment services.

The service, called Pixami Photo Products, includes Pixami's award-winning front-end design software, plus printing, binding, and shipping of professional-quality photo calendars, greeting cards, hardcover and softcover books.

"This was a natural addition to Pixami's product line," said Tom Hodgens, President and CEO of Pixami. "Many of our photo site partners are interested in offering these products to their users, but the time and resource investment required to set up a printing service has been a major hurdle. With Pixami's core business in online digital imaging software, and our experience in printing and publishing, this was an effort that made a lot of sense for us."

He added, "We continue to believe in the ultimate success of digital photography and online photofinishing, and feel that personal photo products will give photo sites a much-needed boost in users and revenue."

The front-end software for Pixami Photo Products includes a 'wizard' design, allowing even the most novice users to quickly and easily create a personal calendar, greeting card, or book, complete with their own photos and captions. The software also includes advanced features such as the ability to add clip art, text balloons, borders and backgrounds.

The back-end system prepares the final order for printing, which is accomplished on Indigo Digital Offset printing presses, with complete tracking and status through the production and mailing process. Turnaround times from order to shipping will be between 3-5 days.

Pixami will continue their primary business of license online imaging technology to photo sites. The new service adds a turnkey option for partners that do not have a means for fulfillment of calendars, cards and books. As with Pixami's core technology, the Photo Products system is also 'printer-independent,' with the flexibility to deliver prepared jobs for fulfillment by any means of the partner's choosing.

Pixami will begin offering its Photo Products service immediately, and hopes to have several partners online for the upcoming holiday season. As an initial incentive to photo sites, Pixami is offering a promotion that includes totally free integration of the software, and a discount off standard wholesale pricing. Pixami will sell Photo Products only through license partners, and does not have plans to market to end-users.

Interested parties can contact Pixami at [email protected], for more information, pricing, samples, and an online demonstration.

About Pixami

Pixami is a B2B digital imaging infrastructure company, formed to provide advanced digital imaging solutions to the online photo sharing and photofinishing industry, and to all photo-centric web sites. Pixami's mission is to enable photo sites and their partners with advanced technology solutions that are designed to help them more effectively convert online photos into revenue, attract new users, improve the experience, and increase site "stickiness."

Pixami offers a full suite of products designed specifically for online photo sites, including Image Serving, Photo Uploading, Enhancement, Print Projects, Frames, and its new Photo Products fulfillment service for calendars, greeting cards and books. Each of these products is immediately available for integration on a photo site, on either Windows NT or Linux.

Pixami, Inc. is located at 400 Main Street, Suite 214, Pleasanton, CA 94566. Phone is (925) 462-5051, and FAX is (925) 462-5054. Web site is www.pixami.com.

###