PhotoWorks shows profit after tax benefit.(Brief Article)

Photo Marketing Newsline, May, 2002

PhotoWorks Inc., Seattle, Wash., reported net income of $2.8 million for its second quarter ended March 30, 2002, which included $3.8 million of tax benefit arising from the extension of the carryback period for tax operating losses for tax years ended 2001 and 2002. PhotoWorks expects to receive a tax refund for 2001 of approximately $3.6 million.

The net loss before the tax benefit was $917,000, compared to a $6.9 million net loss a year ago. Net revenues were $9.3 million, compared to $12.7 million.