PhotoWorks Selects Talisma's Multi-channel CRM to Power New Customer Initiative; CRM Solution Suite Helps Leading Photo Web Site Deliver Cost Effective Customer Service

Business Wire, Sept 13, 2004

BELLEVUE, Wash. -- Talisma(TM), a provider of Multi-channel Customer Relationship Management (CRM) solutions, announced today that Seattle-based PhotoWorks has selected Talisma's Multi-channel Customer Relationship Management (CRM) software to help deliver total customer communication integration and management. PhotoWorks, a full-service provider of digital and film photography services to consumers, will use Talisma's innovative offerings for customer service and support to transform their traditional brick and mortar operations.

Designed to improve customer satisfaction and efficiency by enabling customer service, marketing, and sales representatives to provide relevant, accurate customer communications, Talisma's Customer Interaction Suite will also enable PhotoWorks to lower operational costs by enabling customers to choose less costly, more preferable interaction channels such as E-mail and chat.

By increasing the percentage of E-mail response and reducing the percentage of phone interactions, PhotoWorks expects to not only significantly increase customer satisfaction, retention, and up-sell/cross-sell opportunities, but to introduce new efficiencies as well.

Talisma's newly launched Talisma V6.0 Plus(TM) will be the cornerstone in the Talisma-hosted PhotoWorks software solution. The Talisma Knowledgebase, a multi-user knowledge management system and a key component of V6.0 Plus(TM), will empower PhotoWork's Web self-service, customer service, technical support, IT help desk operations, and document management.

"As our customers become more sophisticated, PhotoWorks needs to provide a wider range of interaction channels to ensure high-levels of customer satisfaction and retention," said Tom Kelly, Vice President and Chief Marketing Officer, PhotoWorks. "The Talisma V6.0 Plus(TM) solution -- especially its Knowledgebase product -- will significantly enhance our customer lifecycle management as well as provide a comprehensive sales and marketing system to help us acquire new customers and promote our products and services to our existing customers."

"By selecting Talisma as their CRM partner, PhotoWorks is demonstrating its commitment to excellent customer service and constant improvement in customer satisfaction," commented Dan Vetras, President and CEO of Talisma. "Today's leading companies need an extensible, flexible, and scalable CRM that supports the way customers need to do business. Talisma is proud to help customers like PhotoWorks reach their business goals."

About Talisma

Talisma is a global provider of Multi-channel CRM Solutions enabling organizations to deliver a truly exceptional customer experience. By optimizing the customer's communication channel of choice -- E-mail management, phone, knowledgebase, chat, or the Web -- Talisma delivers total customer satisfaction for service, marketing, and sales organizations. Talisma's global customers include Aviva, Citibank, Coast Capital Savings, Dell, HGTV, Microsoft, MWB, and Sony. Talisma is based in Bellevue, Washington, with offices across the United States, Europe, and Asia. For more information, please visit www.talisma.com.

About PhotoWorks

PhotoWorks is a leading provider of digital and film photography services with a 25 year heritage (formerly known as Seattle FilmWorks), dedicated to providing innovative and inspiring ways for people to create, share and preserve their memories. Every day, digital and film photographers come to www.photoworks.com to upload, enhance and print their best photographic memories, simply and conveniently. Known for its 100% satisfaction guarantee, PhotoWorks has been awarded an "Outstanding" rating by the Enderle Group technology analysis firm. Based in Seattle, PhotoWorks is publicly traded (OTCBB: FOTO). More information on the Company is available at www.photoworks.com or by e-mailing customercare@photoworks.com.