Moto Photo, Inc. Board Authorizes Repurchase of Common Stock

Business Wire, June 30, 1999

DAYTON, Ohio--(BUSINESS WIRE)--June 30, 1999--

Moto Photo, Inc. (Nasdaq:MOTO) announced today that its Board of Directors authorized a common stock repurchase program.

Michael Adler, Chairman and CEO of Moto pointed out, "We believe that the market has not fully valued our shares given the prospects we have in the company. Accordingly, that makes our stock price today an attractive investment opportunity. Repurchase of our shares will enable us to enhance shareholder value."

The timing of the program and the amount of stock repurchased will be dictated by the overall financial and market conditions. The Board authorized management to spend up to $500,000 to make purchases until December 31, 2000. At recent market prices, that is approximately 400,000 shares, or about five percent of the 7,843,238 common shares outstanding.

Adler concluded by stating, "This action by the Board reflects their confidence and underscores management's confidence in the future of Moto Photo, Inc. "

In further news, at the annual shareholders' meeting, the shareholders re-elected the eight incumbent directors for another one-year term. The directors are: Michael Adler, Frank Benson, Lee Carpenter, Leslie Charm, Dexter Dawes, Harry Loyle, David Mason, and James Robeson.

Moto Photo, Inc. is America's largest franchisor of photo imaging labs and portrait studios with 416 stores in the U.S., Canada, and Norway, including 47 Norway affiliates. Further information is available at www.motophoto.com.