SALE OF "PHOTO EXPRESS" BRAND CONSUMABLES BUSINESS ASSETS

31st December, 2008

Over the Christmas period, we completed the sale of our "Photo Express" brand consumables business to Spectrum Consumables P/L, a dedicated photo consumables supplier, effective 31/12/2008.
 
Please direct all future enquiries/orders for the following Photo Express Kiosk consumables to Spectrum Consumables Pty Ltd:
 
2UPC-R156H     Sony Photo Paper and Ribbon
WALL     Photo Express Brand 6x8.5 Photo Wallets
CD     Photo Express Brand Photo CDs
REC ROLL     Photo Express Kiosk Receipt Rolls

We will of course fulfill any back orders that you currently have in the system, however will not continue to accept new orders for the items listed above from 01/01/2009. Full contact details of Spectrum Consumables are available on their website, www.spectrumconsumables.com.au.
 
We will continue to collect all receivables due for orders placed prior to 01/01/2009.
 
Please view this link to the welcome letter from Spectrum Consumables for further details.
We thank you very much for al of your past support and look forward to continuing to work with you, focusing on the continued supply and maintenance of Photo Express brand kiosk hardware and software.
 
Yours sincerely,
 
 
Piers Hill
Managing Director

1st Digital Becomes More Than Prints

1st Digital is excited to introduce its new Total Photo Centre. The company's extensive kiosk network, now allows consumers to order over 100 different photo gifting products, including; mugs, calendars, photo books, puzzles, posters, canvas prints, bags and collage prints. In order to fulfill these orders, 1st Digital has set up an in-house production and distribution facility, capable of creating very large volumes of orders.

With an expert team of program developers continually enhancing the Total Photo Centre software, 1st Digital can respond quickly to market changes and product demand. In the US, photo gift orders account for more than $700 million in revenue per annum, which is now a market open to 1st Digital customers. 1st Digital's aim has always been to provide it's customers with the complete photo ordering solution and in just a few years they are exceeding client expectations.

Almost every 1st Digital customer using the Total Photo Centre says it is the most intuitive and user friendly ordering software they have ever used. 1st Digital plans to release an "At Home" version of the Total Photo Centre in Spring '08. This version will allow consumers to order prints and gifts from the convenience of their own home 24/7. Orders are then sent via the internet to a kiosk of their choice and consumers simply visit the store to collect their order.