Investor Contact:
Lillian Armstrong/David Barnard
lillian@lhai-sf.com/david@lhai-sf.com
Lippert/Heilshorn & Associates
Investor Relations/San Francisco
(415) 433-3777
Keith Lippert (212) 838-3777
PHOTOWORKS DETAILS ONLINE INTERNET STRATEGY AT ANNUAL SHAREHOLDER MEETING
New Investors Join Board of Directors
Sam Rubinstein Retires From the Board of Directors
SEATTLE February 16, 2000 - PhotoWorks, Inc. (Nasdaq: FOTO) announced today at
its annual shareholder meeting in Seattle, Washington, that it is establishing a
new paradigm within its industry by focusing its strategy on the digital imaging
opportunities provided by the Internet and the promotion of its online personal
image banks.
With what is believed to be the largest photo archive in the industry, combined
with its history of high-quality photo-finishing services and unique customer
acquisition techniques, PhotoWorks is positioned to enhance its leadership in
the online image management space.
80 Million Photos in Free Online Image Archive
PhotoWorks has already developed a market leadership position in personal image
banks. Since 1999, the Company has focused on changing customer behavior
patterns by encouraging customers to archive their images at PhotoWorks . As a
result, the Company has developed what is believed to be the most expansive
online archive of customer photos - over 80 million images. The Company has
roughly 750,000 online customers, and recent data indicates the average
PhotoWorks customer utilizing digital services processed approximately 50% more
rolls of film with the Company during 1999 than the average customer who only
ordered traditional services. PhotoWorks is uniquely positioned to continue to
build its online customer base due to its ability to serve both the analog and
digital customers.
An Integrated Solution: Serving Both Digital and Analog Camera Users
Differentiating it from many competitors, PhotoWorks offers both digital and
analog services, allowing it to address the entire photo market. The offering is
now "camera agnostic" serving digital or analog camera users with any brand of
film. While many analysts expect dramatic growth in the use of digital cameras,
today, traditional analog film captures a majority of the market. PhotoWorks
allows its customers using either digital or analog cameras to store, view and
share their images online, and PhotoWorks has the back-end processing
capability in-house to produce high-quality prints from either medium. As people
increasingly view their photos as objects that can be enhanced by online
applications, PhotoWorks will strive to continue to provide unmatched service
and product offerings.
Board of Directors
PhotoWorks also announced at the meeting that Mr. Sam Rubinstein has retired
from the Board of Directors effective immediately. As previously announced, Mr.
Ross Chapin from Orca Bay Partners and Mr. Paul Goodrich from Madrona
Investments have joined the Board of Directors as representatives of the holders
of the recently-issued Series A Preferred Stock. With Mr. Rubinstein's departure
and the arrival of two new Board members, the Board membership has increased to
six.
Mr. Rubinstein, age 82, has been a director of the Company since 1986 and has
been associated with the Company since 1981. Gary Christophersen, President and
CEO, thanked Mr. Rubinstein for his contribution to the success of the Company
and stated, "Mr. Rubinstein has been a valuable asset to the Company in many
ways, including his experience, leadership and financial acumen."
-- MORE --
About Orca Bay Partners
Orca Bay Partners is a private equity investment firm providing equity capital
for transactions ranging from recapitalizations of mature businesses to growth
capital for emerging companies. Founded in 1998, and based in Seattle, Orca Bay
Partners makes investments in companies that are uniquely positioned to benefit
from growing or changing markets.
About Madrona Venture Group
Madrona Venture Group (http://www.madronagroup.com) is an early-stage investor
focused on the Internet Economy in the Northwest. The firm recently closed a
$250 million venture fund directed at emerging Internet, software and
telecommunication businesses. Some of Madrona's early-stage investments include
Amazon.com, Homegrocer.com, and Nordstrom.com.
About PhotoWorks
PhotoWorks, Inc. (formerly Seattle FilmWorks, Inc.) is a photofinishing and
online image management company and a leader in providing digital images over
the Internet. PhotoWorks online is an increasingly popular way for people to
share photos over the Internet. With more than 80 million images archived,
PhotoWorks online is the largest online consumer photo archive site on the Web.
The PhotoWorks online service includes free scanning of every photograph (with
normal film processing fees), Web posting to a private site and lifetime
archiving, as long as the consumer remains an active customer of PhotoWorks.
The online archive is expanding the way people can enjoy their photos by
enabling the growing popularity of photo e-mails and the ability to order
photographic reprints online without the need for negatives. To get started,
customers can request a free film processing starter kit at www.photoworks.com.
Based in Seattle, PhotoWorks (Nasdaq NM: FOTO) was founded in 1978.
Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995:
Statements in this news release concerning leadership in the provision of
digital images over the Internet, the Company's current strategy focus, the
establishment of a new industry paradigm, the Company's position to enhance its
leadership in the online image management space or continue to build its online
customer base, future product and service offerings by the Company, expectations
for growth in the use of digital cameras, and any other statement which may be
construed as a prediction of future capabilities, performance or events are
forward-looking statements, the occurrence of which are subject to a number of
known and unknown risks and uncertainties which might cause actual performance
to differ materially from those expressed or implied by such statements. These
risks and uncertainties include the possibility of delays in the expansion of
image storage capacity due to delays in deliveries from suppliers or technical
problems; system performance problems due to technical difficulties, system
malfunctions, Internet interruptions or other factors; pricing and other
activities by competitors; and other risks including those described in the
Company's Annual Report on Form 10-K and those described from time to time in
the Company's other filings with the Securities and Exchange Commission, press
releases and other communications.
All companies and product names are trademarks of their respective owners. For
more information, e-mail info@photoworks.com or call 800.PHOTOWORKS
(800.746.8696). Copyright 2000 PhotoWorks, Inc.
########