ACD Systems Announces Photofinishing Solution; For Retail and Wholesale Photofinishers to Receive and Manage Digital Print Orders.

Business Editors

PMA 2002

VICTORIA, British Columbia--(BUSINESS WIRE)--Jan. 23, 2002

ACD Systems International Inc. (TSE:ASA), the digital imaging company, today announced it has developed an end-to-end software solution that enables retail and wholesale photofinishers to gain easy entry and increased market share in the rapidly growing digital photofinishing market.

The unique photofinishing solution is offered as an entire network solution or as specific components to enhance photofinishers' existing digital infrastructure. The ACD solution can include ACDSee(TM), the customizable, award-winning, industry-leading digital imaging software used by over 24 million people worldwide.

ACD Systems' photofinishing network solution allows customers to securely order prints from their desktop, and photofinishers to receive and manage those print orders in their lab. This photofinishing solution is based on proprietary image delivery technology developed by ACD and sold to its corporate customer base over the past several years. System components include: client-side software, image uploader, print ordering application, and lab management software.

"We are pleased to provide a secure solution that enables traditional photofinishers to offer digital imaging print services that increase productivity and reliability for those who have already invested in digital photofinishing technology," said Shannon MacLeod, Business Unit Manager, Photography for ACD's photofinishing solution. "Unlike other software offerings, such as Microsoft's Windows XP(R), ACD Systems provides the photofinisher with a targeted, exclusive relationship with their customers that encourages repeat business and the maintenance of continued customer relationships."

ACD is targeting photofinishers who are investing in digital imaging infrastructure and are looking for easy-to-implement solutions that quickly establish their business, grow sales volumes and increase the satisfaction of their customers. Retail photofinishers can expand their service offering by distributing the co-branded ACD client software with their photo CD's, and with consumer electronic devices such as digital cameras, scanners and card readers. In addition, ACD's flexible infrastructure creates an opportunity for existing solution providers to increase market share by integrating ACD components with their existing product offerings. Photofinishers and solution providers implementing the ACD solution will benefit from ACD's easy-to-use, proven technology.

The PMA Industry Trends Report - Retail Markets 2000-2001 identifies the size of the U.S. traditional photofinishing market at $6.5 billion annually with over 1 billion rolls of film developed. A recent study by InfoTrends Research Group, Inc. identifies that digital camera sales will grow exponentially over the next several years, with 2001 numbers almost doubling 2000's, to 18 million U.S. households. 2002 is expected to see sales of digital camera units surpass film camera units. As a result of the mass adoption of digital cameras, a transition is occurring from film-based photography to digital photography that will have dramatic impact on the photofinishing market.

Doug Vandekerkhove, Chair and CEO of ACD Systems said, "For almost a decade, ACD Systems has been providing industry leading solutions for the digital imaging marketplace. The ACD photofinishing solution is yet another high quality, easy-to-use application built on ACD's proven technology."

ACD Systems will be demonstrating components of its new photofinishing solution at PMA 2002 Convention and Trade Show in Orlando, Florida, February 24th to 27th, Booth 1985. Interested press should contact Dianne Escude, [phone].

ACD Systems International Inc.

Headquartered in British Columbia since 1993, ACD Systems International (TSE: ASA) is one of the world's leading developers and marketers of digital imaging software. The company has a history of rapid revenue growth and consistent profitability. ACD has penetrated the global marketplace through advanced Internet distribution and strategic partnerships with manufacturers and developers. ACD has an estimated user-base of 24 million including over 33,000 corporate customers and many Fortune 500 companies. For further details, please visit us at our corporate web site: www.ACDSYSTEMS.com

THIS NEWS RELEASE MAY CONTAIN FORWARD-LOOKING STATEMENTS BASED ON THE ESTIMATES AND OPINIONS OF MANAGEMENT AT THE DATE THE STATEMENTS WERE MADE AND THE COMPANY UNDERTAKES NO OBLIGATION TO UPDATE FORWARD-LOOKING STATEMENTS IF CONDITIONS OR OPINIONS SHOULD CHANGE.