myPhotopipe.com Posts 25% Increase in Second Quarter Revenues

myPhotopipe.com Posts 25% Increase in Second Quarter Revenues

Record Revenues in First Half of Year Exceed Prior-Year Levels by 30% as Popularity of Internet Ordering with Mail Delivery Continues to Expand within Digital Print Processing Market

ATLANTA, July 14 /PRNewswire-FirstCall/ -- myPhotopipe.com, Inc. (Pink Sheets: MPPC), a web-based online provider of digital photo processing and related services, today announced its operating results for the second quarter and first half of 2008.

(Logo:

http://www.newscom.com/cgi-bin/prnh/20080325/CLTU023)

For the three months ended June 30, 2008, revenues increased 25% to $423,610, compared with revenues of $337,676 in the second quarter of 2007. The Company reported a net loss of ($26,757) in the most recent quarter, versus a net loss of ($5,341) in the three months ended June 30, 2007.

For the six months ended June 30, 2008, the Company's revenues rose 30% to a record $789,939, compared with revenues of $609,810 in the first half of 2007. The Company reported a net loss of ($100,482) in the first half of 2008, versus a net loss of ($51,700) in the corresponding period of the previous year.

"Over the last six months, we have strengthened our Company from a personnel perspective, and we are very pleased with the results we have already seen from these crucial hires," stated L. Douglas Keeney, Chief Executive Officer of myPhotopipe.com, Inc. "While this added to our net loss for the second quarter and first half of the year, we feel that we have improved our 'bench' to execute our plans and to match the investments made in technology in the past. We now feel that our team is in place to carry us through the balance of the year."

"We have accomplished a great deal since transitioning from film to digital, and from regional to national," added Keeney. "Revenues have grown every quarter, when compared with prior-year periods, since we unveiled our online digital photo processing model, and I am pleased to report another quarter of record revenues for the three months ended June 30, 2008."

"Our customer base has increased almost ten-fold since the end of 2005, and we are well-positioned to accelerate our rate of revenue growth as more and more professional and serious amateur photographers look to the Internet as their preferred method of ordering prints from digital images. Our future prospects are further bolstered by the growing popularity of high-end digital cameras. A couple of years ago, high-end 7+ megapixel cameras represented a tiny portion of the market, whereas such cameras accounted for 70% of industry sales in 2007. Increasingly, professional photographers are deserting the local camera store and moving their work stream online. myPhotopipe.com's stand against low-margin photo mugs and mouse pads has paid off for us, both in an ever-widening reputation for quality and our ability to focus on innovations in the 'real' product of the digital age -- the print itself."

"Our focus on technology has also helped us better serve our partners, including the Department of Homeland Security, Getty's iStockphoto, Blurb, and numerous other companies," continued Keeney. "Our Company's recent participation in http://www.photographybooknow.com/ allowed us to showcase our capabilities alongside the industry's top brands in a competition to find and reward the creator of the world's best photo book. We believe such opportunities clearly illustrate the outstanding quality that we deliver to customers, thereby expanding market recognition for myPhotopipe.com. Online ordering with mail delivery is expanding its share of the print processing market and now accounts for about one of every six prints made from digital images. This is a trend that holds great promise for myPhotopipe.com, and we look forward to continued revenue growth and a transition to sustainable profitability in the foreseeable future."

myPhotopipe.com, Inc. is one of the few "pure play" online digital photo processors. The Company serves serious amateur and professional photographers with more than 1,000 print and surface combinations. Its innovative use of digital photo tools has resulted in the creation of several unique print options for customers, including the only multi-photo prints, the first catalog of preset panoramic prints, FolioPrints with Embedded Digital Effects, and PRPrints for professional sports organizations and celebrities.

About myPhotopipe.com, Inc.

myPhotopipe.com, Inc. is a web-based online provider of digital photo processing, photo finishing, photo sharing, and related services. The Company's unique blend of 1000 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 http://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

CONSOLIDATED STATEMENT OF OPERATIONS

Three months ending June 30,
2008 2007

Net revenues $ 423,610 $ 337,676
Cost of revenues 108,964 83,273
Gross profit 314,646 254,403
% of revenues 74.28% 75.34%

Operating expenses
Sales and marketing 38,244 35,139
Personnel 126,580 72,987
General and administrative 162,419 142,834
Total operating expenses 327,243 250,961
Income from operations (12,597) 3,442
% of revenues -2.97% 1.02%

Interest expense 11,453 8,783
Other (income) expense, net 2,707 -
Pretax profit (26,757) (5,341)
% of revenues -6.32% -1.58%

Provision for income taxes - -
Net income $(26,757) $(5,341)
% of revenues -6.32% -1.58%

Average shares outstanding 248,943,235 248,943,235

Net income (loss) per share $(0.0001) $(0.0000)

MYPHOTOPIPE.COM

CONSOLIDATED STATEMENT OF OPERATIONS

Six months ending June 30,
2008 2007

Net revenues $ 789,939 $ 609,810
Cost of revenues 204,940 187,715
Gross profit 584,999 422,095
% of revenues 74.06% 69.22%

Operating expenses
Sales and marketing 98,802 23,771
Personnel 250,263 126,100
General and administrative 321,139 306,607
Total operating expenses 670,204 456,478
Income from operations (85,206) (34,383)
% of revenues -10.79% -5.64%

Interest expense 20,395 1,326
Depreciation - -
Amortization - -
Other (income) expense, net (5,119) (15,991)
Pretax profit (100,482) (51,700)
% of revenues -12.72% -12.25%

Provision for income taxes - -
Net income $ (100,482) $ (51,700)
% of revenues -12.72% -8.48%

Average shares outstanding 248,943,235 248,943,235

Net income (loss) per share $ (0.0004) $ (0.0002)

MYPHOTOPIPE.COM

CONSOLIDATED BALANCE SHEETS

June 30, December 31,
2008 2007

(Unaudited) (Audited)

ASSETS
Current assets:
Cash and cash equivalents $21,203 $94,974
Accounts receivable, net of allowance 112,932 86,748
Prepaid expenses and other current assets 36,163 52,440
Total current assets 170,299 234,161

Property and equipment, net 269,301 225,067
Other assets 65,648 64,648
Total assets $ 505,248 $ 523,876

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable $ 181,101 $ 197,676
Accrued liabilities 174,579 179,220
Current portion of notes payable 119,996 135,393
Total current liabilities 475,676 512,289

Notes payable, less current portion 479,982 475,134
Total liabilities 955,658 987,423

Stockholders' equity (deficit)
Common stock, par value $0.001;
800,000,000 shares authorized
at June 30, 2007 and June 30,
2008 respectively; 248,943,235
and 248,943,235 shares issued
and outstanding at June 30, 2007
and June 30, 2008 respectively 388,500 388,500
Additional paid-in capital 507,961 375,961
Accumulated equity (deficit) (1,346,871) (1,228,008)
Total stockholders' equity (deficit) (450,410) (463,547)
Total liabilities and stockholders'
equity $ 505,248 $ 523,876

First Call Analyst:
FCMN Contact:

Photo: NewsCom:

http://www.newscom.com/cgi-bin/prnh/20080325/CLTU023
AP Archive:

http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com
Source: myPhotopipe.com, Inc.

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

Web site:

http://www.myphotopipe.com/
http://www.photographybooknow.com/

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