Possible transaction with Asda Stores Limited

Photo-Me International plc

("Photo-Me" or the "Group")

Possible transaction with Asda Stores Limited

An internal announcement will be made shortly by Asda Stores Limited to its staff about the future of its UK Photo Product Division. Photo-Me therefore confirms that it is in discussions to acquire the assets relating to that business with a view to operating the business from Asda stores. At this stage, there can be no certainty that a definitive and binding agreement will be reached.

A further announcement will be made in due course.

Enquiries:

Investors

IR Focus

Neville Harris 07909 976044

Media

Madano

Matthew Moth 020 7593 4000