On-Line Digital Photography is a Shortsighted Gimmick, Cautions Industry Expert.

IRVINE, Calif.--(BUSINESS WIRE)--Dec. 17, 1999--

With dozens of Internet start-ups attempting to reinvent amateur photography, it was only a matter of time before sites promoted free online digital prints.

"This Internet business model is a scheme that's sure to fail," is the opinion of one leading photo industry expert. "It's a shortsighted gimmick that neglects to recognize photography is more of an art than a science," explained Mitchell Goldstone, president of 30 Minute Photos Etc. He added that "it's tough to give something away for free in the hope of charging later."

Several companies are even providing free film, free uploads and now free prints in an attempt to gain market share. Even with all this free stuff, the ones registering record sales are the brick-and-mortar firms that host an established customer base.

"Buying a book or airline ticket on-line is simple, and it's a science. Snapshots and photography require a different business model. It is an art," explained Goldstone.

The real winners in this emerging business are photo labs that embrace on-site digital imaging. As the world's largest manufacturer of photographic and imaging products, the Eastman Kodak Company (NYSE:EK) along with other imaging concerns are also poised to reap vast new growth opportunities as the total photo imaging category expands.

Although several digital photo sites on the Internet were launched within the past few weeks, the business of providing convenient film-quality prints works best at retail establishments.

Customers at 30 Minute Photos Etc. in Irvine, Calif. can E-mail their digital files for prints and enlargements. These pictures mirror traditional photographs but are enhanced with improved quality. Goldstone said his customers "insist on only trusting real people (skilled professionals) not a keyboard. They also expect fast turnaround."

Goldstone suggests that those concerned about sharing their credit cards with strangers on the Internet, just imagine what could happen to their personal photos sent to far away, cryptical electronic site.

Photo retailers are flourishing because picture-takers can pick-up their completed film and digital orders moments after it is placed. In addition to ordering "double prints," 30 Minute Photos Etc.'s customers also receive their images stored on Kodak Picture CD's and uploaded for sharing on (NYSE: AOL) AOL's "You've Got Pictures" -- all within the same thirty minutes. The Irvine, Calif.-based photo center features a new QSS-2711 DLS processor. It is fully digital and the company only uses 100% Kodak brand products -- from paper to chemistry -- to successfully merge traditional film with high-tech digital photography.

Claims that on-line photography will cause customers to abandon local photo processing retailers are fighting words to Goldstone, who is eminently trained to battle such gossipy illusions. The real winners are consumers, manufacturers and retailers who benefit from the new, fun ways to grow the business and enjoy the art of taking, storing and sharing pictures.

More info: Mitchell Goldstone, 30 Minute Photos Etc. Ph.: 949/474-7654; e-mail: [e-mail].