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Tom Kelley Joins PhotoWorks as New Vice President, Chief Marketing Officer

Tom Kelley Brings Sales and Marketing Expertise to PhotoWorks as New Vice President, Chief Marketing Officer

Former RealNetworks(R) General Manager of Consumer Marketing To Help PhotoWorks Develop eMarketing capabilities for its Premier Online Photography Brand

SEATTLE--(BUSINESS WIRE)--June 2, 2004--

PhotoWorks(R) Inc. (OTCBB:FOTO), a leading provider of digital and film photography services, today announced that Tom Kelley has joined the company as vice president and chief marketing officer. Kelley will lead all aspects of PhotoWorks sales and marketing. He will develop customer acquisition programs and provide experienced business development leadership to drive the company's growth in an increasingly popular category, the digital imaging market.
As general manager of consumer marketing at RealNetworks in Seattle, Kelley was responsible for creating brand marketing strategies and customer acquisition programs for its industry leading subscription services in music (RealRhapsody(TM)) and video (SuperPass) as well as the RealPlayer(R). While at RealNetworks, Kelley led marketing programs with partners such as the National Basketball Association (NBA), Major League Baseball (MLB), NASCAR, CNN and ABC News, as well as launched the Rolling Stones online catalog. Real's subscription base now includes more than 1.3 million people.

Kelley's distinguished credentials in world-class brand marketing include overseeing advertising for Nike at Wieden + Kennedy in Portland, one of the industry's leading creative advertising agencies. Kelley opened the Tokyo office for Wieden + Kennedy and led the development of the Nike brand throughout Asia. He later directed advertising activity for Nike in the USA.

"The accelerating adoption of digital photography has created a tremendous opportunity for PhotoWorks, which is why we've made significant investments this year to position ourselves for sustainable growth," said Philippe Sanchez, President and CEO at PhotoWorks. "Our reputation is based on delivering useful products that both delight and inspire consumers. With Tom, we're adding a strong leader with impressive, hands-on experience in developing world class brands and introducing digital media concepts to consumers in compelling ways."

In addition to positions held at RealNetworks and Wieden + Kennedy, Kelley has launched numerous new products and brands ranging from Electronic Arts and Burger King to Mike's Hard Lemonade, Salon.com and Customatix, an innovative, Web-based design-your-own-shoe concept. Kelley attended the Institute for Advanced Advertising Studies at the University of Southern California and holds a bachelor's degree in Marketing from Santa Clara University.

"The digital imaging category is very cluttered right now yet PhotoWorks is in a unique position to leverage its 25-year heritage as a photography company and define the next generation of products and services. It's an exciting time in terms of innovation," said Tom Kelley, vice president and chief marketing officer of PhotoWorks.

PhotoWorks already has accomplished several brand-building activities in this past year focused on developing a premier online photography brand. Among its notable achievements are:

-- In April, the company announced that it is acquiring assets of PhotoAccess to help broaden PhotoWorks' revenue and customer base, providing superior digital technology and a talented team of engineers with unrivaled expertise in software development and photo color management.

-- The company also launched improvements in its selection, quality and services as the result of comprehensive usability tests, surveys and analysis conducted last December and in conjunction with a complete Brand Audit. Among some of its new improvements, PhotoWorks implemented PhotoWorks Instant Fix across its digital processing, which features world-class color enhancement technology licensed from Colour Science to enhance and correct pictures outside of an optimal range.

-- PhotoWorks has always taken great pride in listening to customer needs and anticipating trends to deliver great value, innovative and easy to use products, and exceptional service. Consequently, the company was particularly pleased to have been selected by Enderle Group as its top choice in an evaluation designed to compare and contrast online photo services from a variety of providers.

-- The company also announced earlier this month PhotoWorks Digital Partner(TM) (www.digitalpartner.com), a free software program designed for digital photographers to effortlessly organize, enhance, share and print their growing collection of digital photo memories without having to be a computer wiz. PhotoWorks Digital Partner received a five-star rating -- the highest possible -- from CNET Download.com. CNET reviews and rates software products listed on its web site based on interface, functionality, features, stability and download. According to CNET, a five-star rating denotes 'the cream of the software crop; we highly recommend this download.

About PhotoWorks Inc.

Formerly Seattle FilmWorks, PhotoWorks(R) has been delivering high-quality photographs to satisfied customers for 25 years. The company is dedicated to providing innovative and inspiring ways for people to create, share and preserve their photographic memories. Every day, digital and film photographers come to www.photoworks.com to upload, enhance and print their best photographic memories, simply and conveniently. The company, which offers a 100% satisfaction guarantee, has been awarded an "Outstanding" rating by the Enderle Group technology industry analysis firm. Based in Seattle, PhotoWorks is publicly traded (OTCBB:FOTO). More information about PhotoWorks is available at www.photoworks.com or by e-mailing customercare@photoworks.com.

PhotoWorks(R) is a registered trademark of PhotoWorks, Inc. All other marks belong to their respective owners.

Contacts


PhotoWorks, Inc.
Loran Cashmore Bond, 206-281-1546
ir@photoworks.com
or
Pembroke, Inc.
Valerie Chan, 206-352-8814
valerie@pembroke.com

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