Flexibility of the PNI Connected Kiosk Opens New Markets for PNI and Allies

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 9, 2009) - PNI Digital Media (TSX VENTURE:PN)(OTCBB:PNDMF) ("PNI" or the "Company"), the leading innovator in digital photography and media solutions for retailers, is pleased to announce several new initiatives related to its PNI Connected Kiosk™.

PNI and Retail Imaging Management Group ("Retail Imaging") are working together to distribute the PNI Connected Kiosk to major retail customers across the US. Retail Imaging has already enabled PNI to sell the traditional touch-screen terminal-based version of the PNI Connected Kiosk into Fred Meyer and King Soopers, announced on April 30th, 2009. PNI and Retail Imaging have now teamed up to place the web version of the PNI Connected Kiosk with Associated Foods Stores' online PixureThis™ photo solution (http://www.pixurethis.com). Based in Salt Lake City, UT, and with more than 500 independently owned supermarkets in eight states, Associated Foods Stores will also distribute a downloadable version of the PNI Connected Kiosk to PixureThis consumers.

PNI has also teamed up with Photo Gift World ("PGW") to launch the online version of the PNI Connected Kiosk to a new range of PGW customers including small retailers, corporations, non-profit organizations and schools. PGW, the leading producer of photo gifts, photo books and calendars for Canadian retailers, is now actively pursuing partnerships in the US. The PNI Connected Kiosk (web version) enables PGW to offer their thousands of photo gift products in an efficient manner to any number of new customers with ease.

PNI also announces that the PNI Connected Kiosk, web version, will be the online photo ordering solution for Photogifts Limited of the UK. Photogifts Ltd. operates http://www.photogifts.co.uk and by adding the PNI Connected Kiosk they are able to offer a flexible and easy ordering solution for both prints and personalized photo gifts.

"The true value of the PNI Connected Kiosk lies in its versatility and reach," said Kyle Hall, Chief Executive Officer of PNI Digital Media. "By empowering our distributors to be able to sell, customize and deploy the technology on our behalf, PNI can unlock entirely new market segments previously unavailable to the Company. Coupled with the PNI Platform's routing tier, the PNI Connected Kiosk is unique in the marketplace."

The PNI Connected Kiosk enables consumers to easily create and order a range of personalized photo products including prints, photo books, calendars, gifts and more. Given the flexible nature of the PNI Connected Kiosk technology, retailers can deploy the PNI Connected Kiosk as their touch-screen ordering system on in-store terminals, as a "home kiosk" for installation on their home PC, and online as a "web kiosk" via a standard web browser. The Company is actively selling all three versions (traditional kiosk, home software and web version) of the PNI Connected Kiosk. More information on the PNI Connected Kiosk including an online demonstration can be found the PNI website at: www.PNIMEDIA.com.

About PNI Digital Media- Founded in 1995, PNI Digital Media operates the PNI Digital Media Platform, which provides transaction processing and order routing services for major retailers. The PNI Digital Media Platform connects consumer ordered digital content, whether from in-store kiosks, online sites or desktop software, with retailers that have on-demand manufacturing capabilities for the production of merchandise such as photos and business documents. PNI Digital Media successfully generates millions of transactions each year for retailers and their thousands of locations worldwide. Follow us on Twitter®: @PNI_Kyle and @PNI_Yasmin.

For more information please visit www.pnimedia.com.

The statements that are not historical facts contained in this release are forward-looking statements that involve risks and uncertainties. PNI Digital Media's actual results could differ materially for those expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, changes in technology, employee retention, inability to deliver on contracts, failure of customers to continue marketing the online solution, competition, general economic conditions, foreign exchange and other risks detailed in the Company's annual report and other filings. Additional information related to the Company can be found on SEDAR at www.sedar.com and on the SEC'S website at www.sec.gov/edgar.shtml.

The TSX Venture Exchange has neither approved nor disapproved the information contained in this release. PNI Digital Media relies upon litigation protection for "forward-looking" statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.