PhotoChannel to provide and operate Online Photo Systems in Australia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 30, 2008) - PhotoChannel Networks Inc. (TSX VENTURE:PN)(OTCBB:PNWIF) ("PhotoChannel" or "PNI") the leading innovator in online digital media solutions for retailers announces it has signed an agreement with Kodak Australia ("Kodak"), a division of Eastman Kodak, to provide and operate online photo systems for Kodak and Kodak's customers in Australia.

PhotoChannel will deploy a customized version of its PNI Digital Media Platform to enable Kodak's retail customers' online photo businesses. The service will include uploading, storing and sharing of images as well as ordering products including prints, calendars, photobooks, greeting cards and other photo gifts. Kmart Australia is the first customer to go live with the service, which is scheduled to launch shortly.

"Working with Kodak will allow us to move much faster within the Australian market," says Peter Fitzgerald, Chairman and CEO of PhotoChannel. "Placing orders for prints and other creative photo merchandise is one of the fastest growing aspects of the digital imaging market in Australia. With PhotoChannel's expertise in delivering online photo systems for large retailers, having the opportunity to deliver systems for Kodak customers such as Kmart Australia is fantastic for the Company. We are pleased to be Kodak's partner in Australia and are looking forward to growing our strong relationship."

About PhotoChannel
Founded in 1995, PhotoChannel operates PNI Digital Media to provide services for major retailers, wireless carriers and content providers. The PNI Digital Media Platform connects consumer ordered digital content with retailers that have on-demand manufacturing capabilities for the production of merchandise. PNI Digital Media generates transactions for retailers and their thousands of locations worldwide. For more information please visit www.photochannel.com.

This press release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future events or developments, including the timing of the launch of the online photo service for the first time, that such launch will be seamless to customers and that additional customers will be secured under this agreement are considered forward looking statements by PhotoChannel. Although PhotoChannel believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include delays to the launch of services as a result of a number of factors, including delays in development of the service, or delays in training customers to use the new service or the failure to secure additional customers under this agreement. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. For more information on PhotoChannel, investors should review PhotoChannel's Annual Information Form and annual Management Discussion & Analysis in Canada available on the SEDAR website at www.sedar.com and PhotoChannel's Form 20F available on Edgar. PhotoChannel does not undertake any obligation to release publicly any revisions to any "forward-looking statement" to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.