March 15 PhotoChannel Networks Inc and DataWave today announced the launch of a new prepaid product to be retailed by 7-Eleven. 7-Eleven is the first retailer to capitalize on PhotoChannel and DataWave's technological advancement by launching its own branded photo website to be fuelled by prepaid card sales in store.

This service builds on the partnership PhotoChannel and DataWave announced last year whereby the two companies had integrated their technology so that retailers using the DataWave Point of Sale Activation (POSA) technology can sell online prepaid print products.

{mosaddphp:/ads4.php} "Having a retailer such as 7-Eleven endorse the PhotoChannel and DataWave prepaid print product is a significant sign of how printing digital images has reached the mainstream," said Peter Fitzgerald, Chairman, President and CEO of PhotoChannel. "The demand for prepaid long distance, prepaid wireless and prepaid online music continues to grow at an explosive rate and the retailers selling these services realize that adding prepaid digital printing can help them reach new and untapped markets, all without any inventory carrying costs."

"The power of the PhotoChannel prepaid product and their integration with the retailers' Point of Sale systems via DataWave is just beginning to be understood," said Phil Metford, Publisher of C.E.BIZ magazine. "With the prolific sales of digital cameras in the marketplace, retailers that have never been in photofinishing before will be able to participate by selling either private branded cards as 7-Eleven is doing, or cutting deals with national photographic brands to offer their prepaid print card products. I can see digital cameras or camera phones being sold with an included prepaid photofinishing card even if the retailer does not offer photofinishing services. At the same time the number of locations selling prepaid print cards will soar, as there is a great return on investment. If I was a retailer I'd be very interested in partnering with PhotoChannel."

The 7-Eleven prepaid print card, available at over 500 7-Eleven stores nationwide in Canada, sells for $25.00 and provides consumers with up to 55 professionally developed prints from their digital camera ranging in size from 4" x 6" to 8" x 10" prints. Utilizing the DataWave POSA system, the prepaid print card is activated upon checkout resulting in zero inventory carrying costs or risk. To order pictures, customers upload their digital photos to the 7-Eleven photo website located at http://www.7-11photo.com, place their order and check out using their prepaid card. Once their order is placed, they will have their film-quality prints, printed on Kodak paper, delivered right to their door. No credit card is ever needed.

"With 7-Eleven being a leader in prepaid phone card sales and PhotoChannel being the undisputed leader in online print service technology and provisioning, it makes perfect sense that we'd team up with them to offer the first POSA prepaid digital print card ready for sale outside of photo retailers in the Canadian market," said Bill Turner, VP Business Development for DataWave. "As DataWave expands our product lineup beyond long distance, wireless and music downloads, having partners like PhotoChannel will provide our retail partners with an increasing range of quality services and convenience."

About DataWave DataWave has been an innovator and developer of prepaid and stored-value programs and merchandising solutions since it was founded in 1994. DataWave pioneered systems that allow for point-of-sale activation of high value, high shrinkage products, such as cash cards, prepaid phone cards and prepaid wireless time. These systems work equally well over the Internet, through intelligent freestanding vending machines and POSA terminals, or with various card activation devices, including cash registers.

About PhotoChannel Founded in 1995, PhotoChannel has created and manages the open standard PhotoChannel Network environment. Major photofinishing retailers and wireless carriers to provide their consumers with online image printing and picture messaging services currently utilize the PhotoChannel system. There are more than 8,000 retail locations worldwide accepting print orders from the PhotoChannel system. For more information on the Company visit http://www.photochannel.com.

WARNING: The TSX Venture Exchange has neither approved nor disapproved the information contained in this release. The Company relies upon litigation protection for "forward-looking" statements.

CONTACT: Michelle Manoff, Rubenstein PR, (212) 843-8051, This email address is being protected from spam bots, you need Javascript enabled to view it ; Kyle Hall, PhotoChannel Networks Inc., (604) 893-8955 ext 293, This email address is being protected from spam bots, you need Javascript enabled to view it ; Investor Information: (866) 345-0115