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PNI Digital Media Announces Second Generation of PNI Connected Kiosk(TM) Software

Enables More Consumer Creativity, On-Kiosk Merchandising and Enhanced Analytics Tools for Leading Photo Retailers (January 31, 2012)

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/31/12 -- PNI Digital Media (TSX:PN)(OTCBB:PNDMF), ("PNI" or the "Company"), the leading innovator in online and in-store digital media solutions for retailers, announced an all-new update to its award-winning PNI Connected Kiosk(TM) software, enabling further consumer creativity, product merchandising and enhanced back office controls.

With PNI Connected Kiosk software, leading photo retailers can offer their consumers the ability to create, customize and order a wide range of photo gifts including photo prints, enlargements, photo books, photo calendars, greeting cards and more, right on a retailer's in-store photo kiosk. Consumers can use their own photos from their digital cameras, mobile phones, tablet devices and also from their Facebook?? photo albums by logging in with Facebook directly from a PNI connected kiosk.

The new version of PNI Connected Kiosk enables retailers to drive results across their category. Highlights include:

-- Compatible with virtually all photo kiosk hardware in the market today, retailers can offer a fresh and consistent branded user experience across their entire fleet of kiosks, regardless of kiosk hardware supplier -- Installs easily on both new and legacy kiosk systems, helping photo retailers get the most out of their kiosk lifecycle investment -- Using the industry-leading PNI LiveControl analytics-style reporting tools, retailers can adjust the user experience and product catalogue on the fly to maximize results immediately based on real-time results -- Using PNI LiveControl, retailers can easily implement and track product sales and promotions nationally, by region, by city, per store or even per kiosk, all in real time. -- Enhanced merchandising features including video promotions and product tutorials directly within the user experience -- All new Visual Product Creator, whereby retailers can easily create and add new products using a step-by-step interface -- New cross-selling features, showcasing additional matching products in the shopping cart, driving up the average order value -- An improved passport photo print wizard, creating incremental uses for deployed photo kiosks -- A new dynamic 'drag and drop' layout creator so consumers can easily drag and drop their photos onto templates to create the perfect personalized photo gift -- Dynamic rich photo layouts that span edge to edge on both sides of a bi- fold photo book -- Improved image effects including transparency, sepia, black and white and dynamic zoom.


"With over 8,000 installations worldwide, PNI Connected Kiosk software is relied upon by many leading retailers to generate orders within their store environments," said Kyle Hall, Chief Executive Officer of PNI Digital Media. "The latest update adds many new features to an already robust solution. PNI is committed to the kiosk software market and has accelerated the development cycle of our software to extend the solution even further."

About PNI Digital Media- 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 online, in-store kiosks, desktop software or mobile phones, with retailers that have on-demand manufacturing capabilities for the production of personalized products such as photos, photo books, photo calendars, business cards and stationery. PNI Digital Media successfully generates millions of transactions each year for retailers and their thousands of locations worldwide.

Further information on our company can be found at 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 from 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 information contained herein is subject to change without notice. PNI Digital Media shall not be liable for technical or editorial errors or omissions contained herein.

PNI Digital Media relies upon litigation protection for "forward-looking" statements.

PNI Connected Kiosk is a registered trademark of PNI Digital Media Inc. Facebook?? is a registered trademark of Facebook Inc. All other registered trademarks are property of their respective owners.

The TSX has neither approved nor disapproved the information contained in this release. Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.

Contacts:
PNI Digital Media
Simon Cairns
Investor Relations and Press Contact
866-544-4881
ir@pnimedia.com
www.pnimedia.com


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