1. Copyright Graphx Inc 2007. All Rights Reserved 1 Introducing Photogize Producer! The New Market Opportunity for Consumer-Personalized Photo DVD/CD Publishing August 2007

2. Copyright Graphx Inc 2007. All Rights Reserved 2 ? ? New Photo Discs Products? A High Growth Photo Disc Market? Is this a Good Business Opportunity For My Store in 2007? ? ?

3. Copyright Graphx Inc 2007. All Rights Reserved 3 Fact #1: CDs/DVDs generate the highest total revenue of any custom photo product today Source: PMA Marketing Research, 2007 Includes online and retail sales

4. Copyright Graphx Inc 2007. All Rights Reserved 4 Fact #2: CDs/DVDs* generate higher average revenues than many products today Source: PMA Marketing Research, 2007 * Weighted avg. price of online & retail CDs/DVDs

5. Copyright Graphx Inc 2007. All Rights Reserved 5 Fact #3: Custom Photo Products are forecast to grow 37% this year Millions of Dollars Source: PMA Marketing Research, 2007

6. Copyright Graphx Inc 2007. All Rights Reserved 6 Fact #4: Use of online photo ordering increases to 24%, vs other means Source: PMA Marketing Research, 2007

7. Copyright Graphx Inc 2007. All Rights Reserved 7 Fact #5: The Photo Disc Market Has Huge Growth Potential Ahead! Sources: * Nielsen Media Research Home Technology Report, 2006; ** PMA Marketing Research, 2007; *** PMA Marketing Research, 2006. 114 Million US Households in 2006 10X DVD Players in the US households versus Photo DVDs !

8. Copyright Graphx Inc 2007. All Rights Reserved 8 Why the low penetration of Photo Discs today? 1. It ’ s difficult & time consuming for consumers to create at home 2. Retailers offer high priced ($100+) manually-produced DVDs, … or 3. Low priced photo CDs for archiving, but NOT for viewing, sharing, & enjoying. XXX Change XXX XXX This XXX XXX Market! XXX

9. Copyright Graphx Inc 2007. All Rights Reserved 9 Our Vision: Establish Photogize DVDs and CDs as the new Everyday Fulfillment Products for digital photo consumers Premium Quality Products, with new features Much more than a photo archive … designed for Personal Viewing, Sharing, & Enjoying New consumer prices- $10-30, with higher retailer margins! To complement & cross-sell with photo prints

10. Copyright Graphx Inc 2007. All Rights Reserved 10 Photogize Disc Producer System A Double-Barreled Breakthrough! 1. Easy for the consumer to create personalized premium-grade DVDs and CDs online 2. Easy for the retailer to produce: Automated in-house production of 10-15 discs per hour, at lower cost

11. Copyright Graphx Inc 2007. All Rights Reserved 11 Photogize DVD- An 8-Part Premium Product 1. Consumer’s original photos at full resolution 2. A Music track the consumer picks from our library 3. Photogize DiscViewer TM S/W - Photo & Music slide show for WinPC & Apple Mac. Same UI as online. 4. A Photo & Music DVD Movie - for TV/DVD viewing! 5. A Consumer-personalized, full-color photo label printed directly on the disc 6. Consumer-personalized, full-color DVD case cover 7. 5x7 Index Prints- included in the DVD case 8. An “Order Prints” button & link to the online album

12. Copyright Graphx Inc 2007. All Rights Reserved 12

13. Copyright Graphx Inc 2007. All Rights Reserved 13 Multiple Customer Uses … Share a Memory at an event The new way to view, share & enjoy digital photos with family & friends Preserve a Memory of an event A highly-valued keepsake to view and archive, or to give as a gift A Better Shoe-box scanning product The new retail product for consumers converting photo prints to digital files

14. Copyright Graphx Inc 2007. All Rights Reserved 14 Share a Memory at an Event Create a Personalized Photo Disc Before an Event, to View & Share at the Event Family celebrations- HS Graduation, Wedding anniversary, Mother ’ s Day, Father ’ s Day Reunions- School, Family, or Friends Youth & local sports- team banquets Religious celebrations Notable birthdays: 13, 18, 21, 30, 40, 50 … etc Funeral or memorial service Anticipate high demand for multiple disc orders

15. Copyright Graphx Inc 2007. All Rights Reserved 15 Preserve a Memory of an Event Create a Personalized Photo Disc After an event, for viewing, archiving, and gift giving Births & Birthdays Family vacations School events and graduations Youth sports Holiday Celebrations- Mothers Day, Fathers Day, July 4, Thanksgiving, Christmas Attendance at a wedding

16. Copyright Graphx Inc 2007. All Rights Reserved 16

17. Copyright Graphx Inc 2007. All Rights Reserved 17 Photogize Producer Model 250: A Full System Solution Software Online Consumer UI PC & Mac DiscViewer software In-lab Order Publishing Consumer Kiosk UI (10/2007) Hardware Primera Bravo XRP ($5K List) - disc burning & direct on disc printing HP OfficeJet Pro K550- DVD case covers Model 250 List Price is $8,995. Special Intro Price of $6,995. through Aug. 31.

18. Copyright Graphx Inc 2007. All Rights Reserved 18 See the Retailer Profits in Premium DVDs & CDs! Retailer Cost Retail Price Retail Margin $ Retail Margin % Photogize CD CD Disc Media$0.79 CD Disc Ink$0.25 CD Case$0.36 TOTAL$1.40$9.95$8.5586%

19. Copyright Graphx Inc 2007. All Rights Reserved 19 See the Retailer Profits in Premium DVDs & CDs! Retailer Cost Retail Price Retail Margin $ Retail Margin % Photogize DVD DVD Disc Media$1.03 DVD Disc Ink$0.25 DVD Case$0.39 Case Cover Ink$0.40 DVD Case Insert page$0.12 (2) Index Prints @.10$0.20 TOTAL$2.39$14.95$12.5684%

20. Copyright Graphx Inc 2007. All Rights Reserved 20 Business Justification Retailer Cost Retail Price Retail Margin $ Retail Margin % Producer System Purchase Price Break Even Units Photogize DVD $2.39 $14.95 $12.5684%$6995 557 $2.39 $19.95 $17.5688%$6995 399 $2.39 $24.95 $22.5690%$6995 310 $2.39 $29.95 $27.5692%$6995 254

21. Copyright Graphx Inc 2007. All Rights Reserved 21 Introducing Photogize Producer! The New Market Opportunity for Consumer-Personalized Photo DVD/CD Publishing August 2007