(Weymouth, MA) October, 26 2004... According to a new forecast report from InfoTrends/CAP Ventures, 50% of the minilabs installed in the U.S. are expected to be digital by the end of 2004. Meanwhile, photo kiosk sales are expected to demonstrate a compound annual growth rate (CAGR) of 12% over the forecast period between 2003 and 2008. Kiosks continue to prove that they are a successful solution in the retail environment.

Most importantly, alternative channels for photo kiosks such as hotels, resorts, amusement parks, and consumer electronics stores continue to develop, and still provide significant growth potential. By the end of the year, about 4% of all kiosk placements will be in unconventional locations. Although the success of photo kiosks in many of these new venues remains to be seen, this continues to be an important market for vendors to consider as they work to increase their sales.

“Major retail digital photofinishers such as Wal-Mart, Costco, and Walgreens are now either fully equipped with digital minilabs and photo kiosks or plan to be by the end of 2004,” says Kerry Flatley, a Consultant at InfoTrends/CAP Ventures. "As advertising generates awareness and knowledge of retail digital print solutions, consumers will look to outsource printing to a retailer because of time, resource, quality, or cost issues, and this is a winning proposition for minilab and kiosk vendors.”

Fuji remains the number one player in the digital minilab market, while Kodak is still the leading photo kiosk vendor in terms of market share of the installed base.

InfoTrends/CAP Ventures’ new forecast report entitled 2004 Photo Kiosk and Retail Digital Photofinishing Forecast and Analysis is available immediately. It provides vendor market shares and five-year forecasts for the photo kiosk and digital minilab markets by subsegment. The report includes analysis of trends in the industry, a discussion of drivers and barriers, an assessment of the size of this market, news regarding photofinishing vendors and their retail partners, and a look at the installed base of digital minilabs and photo kiosks on a worldwide level. Vendors covered in the forecast include Agfa, Digital Portal, Fujifilm, Kodak, Konica Minolta, Lucidiom, Mitsubishi, Noritsu, Olympus, Pixel Magic, Oblo, Silverwire, and Sony.

InfoTrends/CAP Ventures is the leading worldwide market research and strategic consulting firm for the digital imaging and document solutions industries. We provide research, analysis, forecasts, and advice to help clients understand market trends, identify opportunities, and develop strategies to grow their businesses. Additional information about InfoTrends/CAP Ventures is available on the Web at www.infotrendsresearch.com.

CONTACT: Matt O'Keefe, InfoTrends tel. 781-616-2100, fax 781-616-2121, 97 Libbey Industrial Parkway, Weymouth, MA 02189, matthew_okeefe@infotrends.com.