PhotoWorks Appoints Matt Kursh to Its Board of Directors; Former Microsoft Executive Adds Internet Depth and Software Experience

Business Wire, July 18, 2000

Business Editors

SEATTLE--(BUSINESS WIRE)--July 18, 2000

PhotoWorks, Inc. (Nasdaq:FOTO), the leading online service for sharing, printing and storing photos, today announced that Matt Kursh has been appointed to its board of directors. The appointment brings the number of board members to seven.

Matt Kursh, 35, brings over 15 years of software and Internet startup experience to the PhotoWorks' board of directors. Kursh started his career as president and co-founder of Clearview Software, which he sold to Apple Computer in 1989. Kursh then co-founded and was CEO of eShop Corporation, one of the first companies to offer platforms and services for online shopping. eShop's customers included such leading companies as AT&T, Tower Records, Spiegel, 1-800-Flowers and the Good Guys. eShop was later acquired by Microsoft where Kursh ran Sidewalk, HomeAdvisor and MSN.com. Kursh left Microsoft in 1999 to focus on creative projects and work with start-up companies.

Commenting on his appointment, Kursh stated, "I am thrilled to be joining the PhotoWorks board. The company is well positioned to capitalize on the rapidly emerging digital marketplace. PhotoWorks' digital Internet strategy represents the natural evolution of its core competencies in photofinishing and direct marketing. I look forward to working closely with Gary Christophersen and the other members of the PhotoWorks management team."

Gary Christophersen, PhotoWorks' president and chief executive officer, said, "Matt's track record is exceptional, and I am delighted to welcome him to our board. His proven abilities to found, lead and manage Internet businesses will be a valuable asset to the company."

About PhotoWorks

PhotoWorks is the leading Internet photo services company, dedicated to providing its customers with innovative ways to enjoy and use their photos. The PhotoWorks.com service provides both traditional and digital camera owners with the easiest way to store and organize photos online, share them with friends and family, order reprints, photo albums and other gifts.

The company draws upon a unique dual heritage as a top-rated photofinisher with over twenty years of experience along with a tradition of innovation and leadership in digital and online photo service. The company was the first to offer free scanning, online archiving and e-mail sharing services to both traditional and digital cameras, and hosts the largest consumer online photo archive in the world, currently with over 100 million images.

Based in Seattle, PhotoWorks, Inc. (Nasdaq:FOTO) was founded in 1978. The company generated $88 million in revenue over the last 12 months and recently added private investments from Orca Bay Partners and Madrona Investment Group. More information is available at www.photoworks.com or by calling 800/746-8696.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

Statements in this news release concerning leadership in online digital imaging and photo-sharing, future product or service offering, ability to scan and store a growing volume of digital images or every photo processed by the Company, core competencies in photofinishing and direct marketing, dedication to providing innovative ways to expand how people use their traditional and digital images, ease of use 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.

Note to Editors: All companies and product names are trademarks of their respective owners. For more information, email info@photoworks.com or call 800/746-8696.