PN Pni Digital Media Inc.

PNI Digital Media (TSX VENTURE: PN)(OTCBB: PNDMF) ("PNI" or the "Company"), the leading innovator in online and in-store digital media solutions for retailers, announced that the Company has entered into an agreement to extend the term of its Internet Services Agreement with CVS Pharmacy Inc. ("CVS") to provide and operate the CVS/pharmacy online photo service www.cvsphoto.com, which is connected to over 7200 CVS/pharmacy locations across the US for an additional three year period. The service will continue to allow CVS/pharmacy customers to easily upload and place orders for photo prints, greeting cards, calendars, photo books, posters, canvas prints and other photo gift items on the CVS Photo website, with options to pick-up photo prints within an hour and/or have orders shipped to them.

"CVS/pharmacy has been incredibly innovative in their approach to the online photo market," said Kyle Hall, Chief Executive Officer of PNI Digital Media. "The ability to work with them has been a very rewarding experience for the whole PNI team and we are pleased to have the opportunity to continue the relationship for this extended period."

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.

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.

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