myPhotopipe.com Reports Third Quarter Operating Results

myPhotopipe.com Reports Third Quarter Operating Results

ATLANTA, Nov. 13 /PRNewswire-FirstCall/ -- myPhotopipe.com, Inc. , a web-based online provider of digital photo processing and related services, today announced its operating results for the third quarter and first nine months of 2007.

(Logo: http://www.newscom.com/cgi-bin/prnh/20061006/CLF033LOGO )

For the three months ended September 30, 2007, revenues increased 29% to $388,162, compared with revenues of $301,560 in the third quarter of 2006. Net income totaled $8,039 in the third quarter of 2007, versus a net loss of ($127,104) in the three months ended September 30, 2006.

For the nine months ended September 30, 2007, the Company's revenues rose 63% to $997,972, compared with revenues of $613,492 in the first nine months of 2006. Year-to-date results for 2007 included nine months of operating results from QC GalleryWorks, which was acquired in June 2006, whereas nine- month results for 2006 included only four months of operating results from the acquired company. The Company reported a net loss of ($43,663) in the first nine months of 2007, versus a net loss of ($250,807) in the nine months ended September 30, 2006.

"We are very pleased to report our second consecutive quarter of profitability, along with a substantial reduction in net loss for the first nine months of the current year," noted L. Douglas Keeney, Chief Executive Officer of myPhotopipe.com, Inc. "Over the past two years, we have made significant investments in marketing, infrastructure and production, and we believe that we are now beginning to realize the benefits from those investments. The Company is substantially more efficient than it was a year ago. As an example, we were able to comfortably deliver record sales in each month during the third quarter with fewer employees than in the prior-year period."

"Our marketing activities have continued to generate positive results, with more than 10,000 prospective customers 'bookmarking' our website and over 4,000 prospective customers downloading our remote order entry system software (myPhotopipeROES) during each month in the third quarter," continued Keeney. "Taken together, these 30,000-plus bookmarks and approximately 12,000 downloads continued to grow the universe of myPhotopipe.com prospects. We believe that many of our first-time customers are derived from this pool of prospects and that our continued strong growth in first-time customers has allowed our Company to overcome traditional seasonality in sales during the course of 2007."

"We believe our improved marketing efficiencies are reflected in the growth of our average order size. By continuously refining our online advertising, magazine buys and search engine placements, we have been able to more effectively target the professional and serious amateur photographer community. We believe the upward trend in our average purchase reflects the gradual reduction of 'snapshot' photographers and 'grazers' in our customer mix."

"We also believe our emphasis on new products and new technologies is contributing to our growth," added Keeney. "During the third quarter, we launched an exclusive line of bordered panoramic prints, and we became the first national lab to introduce a high end, breakthrough paper developed by Fuji called Fuji Crystal Archive Pearl. Our quick adoption of Pearl -- an emulsion-based paper -- clearly communicated to our target customers that myPhotopipe.com is committed to bringing new products to the market as quickly as possible."

The Company also noted that its PRPrintsPro application has enjoyed excellent market acceptance. PRPrintsPro simplifies the surprisingly complex process of creating and ordering prints that will be autographed by celebrities, public officials or professional athletes. This application, which was developed in part to service the Company's contract with the Department of Homeland Security, is now being used by the Atlanta Falcons, the Tampa Bay Buccaneers, the Dallas Cowboys, the New York Giants and the Tennessee Titans; by clubs in the NBA and Major League Baseball; and by celebrities, along with their manages and agents. The Company believes that new sports teams and clubs will be added to the roster of users as the rollout of PRPrintsPro continues.

"Shortly after the end of the third quarter, we publicly announced our partnership with iStockphoto, a company that has revolutionized the stock photo business model by encouraging user-generated content and low-cost licensing," continued Keeney. "iStockphoto was financially backed by some of the best venture capital firms in Silicon Valley and later acquired by Getty Images, a storied name in traditional stock photography and a company that trades on the New York Stock Exchange. myPhotopipe.com has been designated as the provider of prints for the more than one million users of iStockphoto's website. The successful conclusion of this year-and-a-half endeavor represents a point of pride for myPhotopipe.com that we hope our shareholders will recognize. We encourage investors to visit the site at www.istockphoto.com, become a member (membership is free), select a photo and notice myPhotopipe.com's branded logo near the 'Print' tab below the photo. This will illustrate the excellent visibility our Company has with iStockphoto users, who download an image from the website every 2.5 seconds. The rebranded iStockphoto website was officially launched on October 11, 2007."

In connection with the events and initiatives discussed above, myPhotopipe.com has invested in additional server capacity, ftp server capacity, and improvements to the Company's internal networking system. These enhancements are designed to speed the flow of orders and further increase the overall efficiency of the Company's Atlanta plant. Customer service and inbound customer call servicing was transferred to the Company's Charlotte plant during the third quarter.

About myPhotopipe.com, Inc.

myPhotopipe.com, Inc. is a web-based (2.0) online provider of digital photo processing, photo finishing, photo sharing, and related services. The Company's unique blend of 104 print options, combined with manual print inspections and professional color management, have positioned myPhotopipe.com as one of the fastest-growing providers of digital photography services for professionals and serious amateurs.

The Company is headquartered in Atlanta, Georgia, and its common stock is listed on the OTC Pink Sheets under the symbol "MPPC". Additional information is available on the Internet at www.myPhotopipe.com.

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 that are subject to the "safe harbor" created by those sections. Such forward-looking statements are based upon current information and expectations regarding myPhotopipe.com, Inc. These statements speak only as of the date on which they are made, are not guarantees of future performance, and involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results could materially differ from what is expressed, implied, or forecast in such forward-looking statements.

myPhotopipe.com, Inc. assumes no obligation to update the information contained in this release. Any forward-looking statements in this press release may be materially impacted by any number of factors, any or all of which could have a negative impact on sales, operating results, financial and budgetary constraints. The statements made herein are independent statements by myPhotopipe.com, Inc. The inclusion or mention, if any, of third parties in this press release does not represent an endorsement of any myPhotopipe.com, Inc. products or services by any such third party.

                                  Contact:          L. Douglas Keeney, CEO, at (502) 419-5837 or via email at                           dougk@myphotopipe.com                                      or  

R. Jerry Falkner, CFA, RJ Falkner & Company, Inc., Investor Relations Counsel

            at (830) 693-4400 or via email at info@rjfalkner.com                         (Financial Highlights Follow)                              myPhotopipe.com, Inc.                     CONSOLIDATED STATEMENT OF OPERATIONS                 (cents omitted, except per share amounts)                                             Three months ending September 30,                                                     2007           2006    Net revenues                                    $388,162       $301,560   Cost of revenues                                  88,313        164,734   Gross profit                                     299,849        136,826     % of revenues                                    77.25%         45.37%    Operating expenses     Sales and marketing                             75,040        100,552     Personnel                                      140,469         68,968     General and administrative                      87,623         75,343       Total operating expenses                     303,132        244,863   Income from operations                            (3,284)      (108,037)     % of revenues                                    -0.85%        -35.83%     Interest expense                                  25,363         12,864   Other (income) expense, net                      (36,686)         6,204   Pretax profit                                      8,039       (127,104)     % of revenues                                     2.07%        -42.15%    Provision for income taxes                             -              -   Net income                                        $8,039      $(127,104)     % of revenues                                     2.07%        -42.15%    Average shares outstanding                   248,943,235    248,943,235   Net income (loss) per share                      $0.0000       $(0.0005)                              myPhotopipe.com, Inc.                     CONSOLIDATED STATEMENT OF OPERATIONS                 (cents omitted, except per share amounts)                                              Nine months ending September 30,                                                     2007           2006    Net revenues                                    $997,972       $613,492   Cost of revenues                                 276,030        185,844   Gross profit                                     721,942        427,648     % of revenues                                    72.34%         69.71%    Operating expenses     Sales and marketing                             98,811        207,992     Personnel                                      266,569        238,553     General and administrative                     394,230        212,661       Total operating expenses                     759,610        659,206   Income from operations                           (37,669)      (231,558)     % of revenues                                    -3.77%        -37.74%    Interest expense                                  26,689         21,503   Other (income) expense, net                      (20,695)        (2,254)   Pretax profit                                    (43,663)      (250,807)     % of revenues                                    -4.38%        -40.88%    Provision for income taxes                             -              -   Net income                                      $(43,663)     $(250,807)     % of revenues                                    -4.38%        -40.88%     Average shares outstanding                   248,943,235    248,943,235   Net income (loss) per share                     $(0.0002)      $(0.0010)                              myPhotopipe.com, Inc.                         CONSOLIDATED BALANCE SHEETS                 (cents omitted, except per share amounts)                                                         September 30,                                                     2007           2006                                   ASSETS   Current assets:     Cash and cash equivalents                      $84,162       $128,195     Accounts receivable, net of allowance          104,662         30,267     Prepaid expenses and other current assets       38,647         13,586       Total current assets                         227,471        172,048    Property and equipment, net                      348,751        156,092   Other assets                                      67,228              -       Total assets                                $643,450       $328,140                    LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)   Current liabilities:     Accounts payable                              $181,501       $112,539     Accrued liabilities                            269,467        128,913     Current portion of notes payable               139,752         93,519       Total current liabilities                    590,720        334,791     Notes payable, less current portion              537,640        374,078       Total liabilities                          1,128,360        708,869    Stockholders' equity (deficit)     Common stock, par value $0.001:800,000,000      shares authorized at September 30, 2006 and      September 30, 2007 respectively; 248,943,235      and 248,943,235 shares issued and      outstanding at September 30, 2006 and      September 30, 2007 respectively               388,500        176,000   Additional paid-in capital                       248,674        109,462   Accumulated equity (deficit)                 (1,122,084)      (666,191)       Total stockholders' equity (deficit)       (484,910)      (380,729)    Total liabilities and stockholders' equity    (deficit)                                      $643,450       $328,140  

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Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20061006/CLF033LOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com

Source: myPhotopipe.com, Inc.

CONTACT: L. Douglas Keeney, CEO, myPhotopipe.com, Inc., +1-502-419-5837,
dougk@myphotopipe.com; or R. Jerry Falkner, CFA, RJ Falkner & Company, Inc.,
Investor Relations Counsel, +1-830-693-4400, info@rjfalkner.com

Web site: http://www.myphotopipe.com/
http://www.istockphoto.com/

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