COLOGNE, Germany--(BUSINESS WIRE)--Sept. 24, 2002--Photokina, Gretag Imaging AG and Applied Science Fiction(TM), Inc. (ASF(TM)) announce today plans to pursue market testing of the modular Digital PIC(TM) dry film-processing solution.

This modular solution will be demonstrated for the first time in the ASF stand at Photokina. Gretag Imaging is one of the world's premier suppliers of photofinishing and imaging equipment. Applied Science Fiction is the inventor of the Digital PIC cutting-edge digital dry film processing system, in addition to being the leader of automatic photo restoration applications including the award-winning Digital ICE(TM) and Digital ICE3(TM) family of technologies.

Gretag Imaging and ASF will cooperate on the design of modular Digital PIC photofinishing solutions aimed at the retail marketplace. In addition to the Photokina working-system, ASF and Gretag will implement field tests at leading European retailers' sites in Germany during the fourth quarter of 2002 and the first quarter of 2003.

The core of the Digital PIC photofinishing systems is a Digital PIC "input station" where the consumer inserts their 35mm film for processing. In minutes, the "input station" automatically extracts the film from its cartridge, begins developing the film, and dispenses a receipt with a unique roll identification code. The customer then uses the code to log-on to a viewing station from which the processed images can be viewed, edited, and selected for printing. A wide variety of Gretag output devices can be connected to the system to provide both electronic and hardcopy output, including silver halide, ink jet, and dye-sublimation printers. This solution allows customers to develop their film, and provides workstations for multiple users to simultaneously edit and print images quickly. With this modular Digital PIC system, retailers can expand their current photofinishing services or introduce on-site photo processing where they were previously unable to due to space limitations, environmental restrictions, low volume locations or overall cost of ownership.

"The adaptability of our Digital PIC technology offers Gretag an opportunity to further strengthen their leadership position in the photofinishing landscape," said Dan Sullivan, president and CEO of Applied Science Fiction. "Integrating Digital PIC with Gretag's viewing stations and output devices demonstrates tremendous value to the retailer. The small footprint, fast film processing, environmental friendliness, and multiple output options expand the ability for retailers to leverage photofinishing to increase profitability."

"The ease in which we can connect the Digital PIC input station to existing and planned Gretag kiosks and output devices enables considerable flexibility," said Patrick Jung, Gretag Imaging CEO. "We are testing with ASF the use of Digital PIC as an input station to our digital photo station kiosk systems. These systems in turn are already capable of sending image files for printing on Gretag Master Flex D1008 Digital Minilabs, Netprinter Digital Printers, and high-speed dry printers using Polaroid Corporation's Opal technology, dye-sub, and inkjet technologies. For some retailers, the Digital PIC input station would be a logical incremental investment to complement services already offered through Gretag products. For others who have not yet transitioned to digital, we can tailor a complete digital solution to a particular retailer's requirements."

Expected commercial availability of the system, if successful in test markets, is targeted for 2003.

Digital PIC Process

ASF's Digital PIC technology develops 35mm film directly into a high-resolution RGB digital format in one quick step. Micro-amounts of a proprietary developing agent are applied to a roll of exposed but undeveloped film as it is fed through the processor's image-capture engine. The environmentally friendly Digital PIC process requires no water, generates no hazardous effluents, and makes complete silver recovery possible. Next, the Digital PIC system makes a digital record of each image. Once the image data is captured, color data and exposure settings are established on a pixel-by-pixel basis for each element of every image. Complete 24-exposure roll development is accomplished in approximately seven minutes after the film is fed into the image-capture engine.

Digital PIC creates a unique DigiPIX(TM) digital negative CD. The DigiPIX CD offers consumers tremendous flexibility for communicating with images. The CD includes an index-print file plus high-, medium- and low-resolution image files that provide the consumer a convenient avenue to share their images in many ways. Digital PIC allows for consistent image quality, and is Internet and Broadband ready. Configurations for Digital PIC technology include photo kiosks, microlabs, back office workstations, back labs, and quick print stations.

About Gretag, The Imaging Company

The Gretag Imaging Group, which is headquartered in Regensdorf, Switzerland, is one of the world's premier suppliers of photofinishing and imaging equipment and systems. The Group's products and services range from minilabs and central labs equipment, to Internet applications. Facilities are located in Switzerland, Italy, the United States, and Canada, with sales and service organizations located throughout the world. Gretag is listed on the Swiss Exchange (GIGN), and employs approximately 1,300 employees worldwide. More information can be found on Gretag's Web site at www.gretag.com.

About ASF

Applied Science Fiction develops proprietary technologies for the imaging industry that link traditional photography with the digital age. ASF licenses its branded technologies through Original Equipment Manufacturers (OEMs) that provide products for the professional and consumer imaging markets. ASF also directly distributes Adobe® Photoshop® compatible plug-ins for automatic image correction and enhancement. More information can be found on ASF's Web site at www.asf.com.

All trade names, trademarks and registered trademarks are the property of their respective owners.

Visit Gretag at Photokina, Hall 09.2, Stand Q010/R011

Visit Applied Science Fiction at Photokina, Hall 10.1, Stand E10/18