<ARTICLE>                     5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL  INFORMATION EXTRACTED FROM PHOTOWORKS,
INC. 1ST QUARTER 1999 10-Q AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER>                                   1,000

                                            
<PERIOD-TYPE>                                  3-MOS
<FISCAL-YEAR-END>                              SEP-25-1999
<PERIOD-START>                                 SEP-27-1998
<PERIOD-END>                                   DEC-26-1998
<CASH>                                         15,889
<SECURITIES>                                   0
<RECEIVABLES>                                  1,290<F1>
<ALLOWANCES>                                   0
<INVENTORY>                                    9,630
<CURRENT-ASSETS>                               27,696
<PP&E>                                         10,963<F1>
<DEPRECIATION>                                 0
<TOTAL-ASSETS>                                 51,728
<CURRENT-LIABILITIES>                          6,154
<BONDS>                                        0
<PREFERRED-MANDATORY>                          0
<PREFERRED>                                    0
<COMMON>                                       162
<OTHER-SE>                                     41,094
<TOTAL-LIABILITY-AND-EQUITY>                   51,728
<SALES>                                        0
<TOTAL-REVENUES>                               21,512
<CGS>                                          13,666
<TOTAL-COSTS>                                  9,831
<OTHER-EXPENSES>                               (232)
<LOSS-PROVISION>                               0
<INTEREST-EXPENSE>                             0
<INCOME-PRETAX>                                (1,753)
<INCOME-TAX>                                   (701)
<INCOME-CONTINUING>                            0
<DISCONTINUED>                                 0
<EXTRAORDINARY>                                0
<CHANGES>                                      0
<NET-INCOME>                                   (1,052)
<EPS-BASIC>                                  (.06)
<EPS-DILUTED>                                  0

<FN>
<F1>Asset values represent net amounts.
</FN>