Future Image Publishes First In-Depth Evaluation Of CPXe Imaging Industry Initiative -- Technology, Adoption Dynamics, Vendor Prospects.

Business Editors/High-Tech Writers

SAN MATEO, Calif.--(BUSINESS WIRE)--Feb. 27, 2003

Future Image Inc., the leading provider of digital imaging information and analysis, today announced the results of an extensive study of CPXe, a technology initiative launched by the imaging industry to enable consumer applications and devices to seamlessly search for and use photofinishing services from any networked imaging application or service, regardless of manufacturer, service provider or geography.

The publication of the study, entitled "CPXe -- Reshaping Photofinishing through Web Services" coincides with the International Imaging Industry Association (I3A) announcing today the availability of a suite of CPXe interoperability specifications and the creation of the Picture Services Network (PSN).

According to Hans Hartman, Principal Author of "CPXe -- Reshaping Photofinishing through Web Services", "CPXe is a bold and innovative initiative that uses interoperability as the industry's response to the fundamental changes in end user behavior triggered by the success of digital cameras. The CPXe infrastructure will give photographic services providers a historic opportunity to rejuvenate their value proposition to end users, and make it relevant to the digital imaging age."

"CPXe -- Reshaping Photofinishing through Web Services" includes:

-- An evaluation of the Web Services framework as a foundation for CPXe

-- A discussion of the strengths and weaknesses of CPXe Release 1

-- An analysis of the drivers and inhibitors to end-user adoption of the system, with a series of recommendations from Future Image analysts

-- An analysis of the risks and opportunities for retail photofinishing services providers, with a series of recommendations from Future Image analysts

-- An analysis of the risks and opportunities for online and mail order photofinishing services providers, with a series of recommendations from Future Image analysts

-- An analysis of the risks and opportunities for vendors of end user imaging products (digital cameras, software, printers etc.), with a series of recommendations from Future Image analysts

-- An analysis of the risks and opportunities for suppliers of technology and equipment to photofinishing services providers, with a series of recommendations from Future Image analysts

-- Interviews exploring the executive view on CPXe at Hewlett-Packard, Kodak, Microsoft, Adobe, Pixology, Shutterfly, FotoWire (now SilverWire), Future Shop, LightSurf, and Ritz Interactive.

The 61 page) study also outlines the lessons learned from the experience of XML Web services, a rapidly emerging set of standards for integrating applications in the IT sector, which is also the technology base for CPXe. "For example" Hartman said, "imaging vendors will now be able to, and most likely be forced to, implement a much more flexible partnership framework based on plug-and-play linkups and opportunistic alliances. With CPXe, integrating applications will no longer be a bottleneck that forces companies to remain locked in relationships that don't pay off, or hinders them from trying more audacious partnerships."

The study outlines specific drivers and inhibitors that will determine to what extent digital camera users will adopt the CPXe-based photofinishing search-and-order solutions. It recognizes that self-printing is a major market reality which will become even more attractive in the years to come. However it concludes there are major opportunities for photographic services providers, particularly those who see past the traditional "4x6 mindset."

"The hard reality of the digital age is that the reason most prints have been made in the past -- simply making it possible to view or share the image -- is becoming gradually less relevant," said Alexis Gerard, President, Future Image Inc. "In its place we are seeing the emergence of several new and exciting value models for service providers that build on the powerful options afforded by new infrastructure and device capabilities. These range from convergence with consumer electronics, to new options for formatting digital content, to mobile communications. It's highly relevant to service providers, for instance, that worldwide sales of camera-enabled mobile phones will exceed those of digital cameras this year."

"CPXe -- Reshaping Photofinishing through Web Services" is available now from the Future Image web site (www.futureimage.com)

Hartman is chair of the Seybold Seminars PDF Conference and past chair of the Seybold Web Services for Publishers Hot Tech Day. He also writes about PDF and XML Web services for the Seybold Report and Hosting Tech Magazine. He previously held executive marketing positions at ScheduleOnline, Live Picture, Barco Graphics, and Xaos Tools.

About Future Image

Future Image Inc. is the leading independent center of expertise on the convergence of imaging, technology and business. It publishes two continuous information services, the Future Image Executive Information Service, and the Future Image WIRE (Wireless Imaging Research Edition) as well as research studies on the impact of emerging imaging-focused technologies or business trends. Recently published studies include "Beyond The 4x6 -- New Print Options For Consumer Digital Photography", "Integrated Electronic Personal Photo Sharing -- The Future of Consumer Photography", "Image Servers -- Vendor Competitive Profiles And Early Adopter Case Studies" and "Digital Cameras -- The Battle For The Emerging Consumer Market." Future Image is the official information and research partner of the International Imaging Association (I3A), and the Managing Partner of the Visual Communication initiative (www.visualcommunication.info), supported by Eastman Kodak, Epson, Hewlett-Packard, IBM, LightSurf, Microsoft, Nikon and Sprint PCS. Founded in 1991, the company is headquartered in San Mateo (CA).

Note to Editors: Excerpts of the reports are available for publication.