PhotoChannel Networks Inc (TSX-V: PNI and OTCBB: PHCHF) ("PhotoChannel") and DataWave (OTCBB: DWVSF) ("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.
"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 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
www.photochannel.com.

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