myPhotopipe.com Revenues Rise 86% in 2006, Including 162% Increase in Fourth Quarter

ATLANTA, Ga., March 27 /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 quarter and year ended December 31, 2006.

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

For the three months ended December 31, 2006, the Company's revenues reached $352,324, which represented a 162% increase when compared with revenues of $134,603 in the fourth quarter of 2005. The Company reported a net loss of ($486,099) in the fourth quarter of 2006, versus a net loss of ($93,441) in the corresponding period of the previous year.

For the twelve months ended December 31, 2006, revenues increased 86% to $1,001,176, compared with revenues of $538,300 in the previous year. The Company reported a net loss of ($741,889) in 2006, versus net income of $53,215 in the year ended December 31, 2005.

"Our accomplishments in 2006 reflect a continuation of the Company's transformation from a high-end processor of traditional film into a high-end online provider of digital photography services," stated L. Douglas Keeney, Chief Executive Officer of myPhotopipe.com, Inc. "This transformation began with our acquisition of Color Genesis in 2005 and continued in 2006 with a series of planned upgrades in a number of critical systems in order to position myPhotopipe.com for rapid growth in the future. We completed three software rollouts in 2006. The first was our Remote Order Entry System (ROES) photo uploader, an Internet platform with real-time preview features for photographers. Then we launched our proprietary digital photo management platform with automatic UPS integration for tracking shipments called PhotoTRAC. And, finally, we launched our ImageQuix software platform that provides online proofing capabilities for professional event photographers. Any company would be proud to successfully rollout one software platform but we completed all three and while they certainly impacted our bottom line in 2006, these planned expenses are behind us and our customers are delighted with them."

During 2006, the Company acquired QC Gallery Works, a digital photo processing laboratory in Charlotte, North Carolina; and Gallery Works Photos, a specialized laboratory in Atlanta, Georgia. "Gallery Works Atlanta has been a real 'plus' for us in the area of digital photo tools," noted Keeney. "However, we incurred substantial non-recurring charges in Charlotte when the building that housed our laboratory was sold and our lease unexpectedly terminated. We had to relocate in 30 days, and this resulted in customer confusion in the local market. We have since made some adjustments in our Charlotte operations and believe the lab's outlook for 2007 is much improved."

The Company also overhauled its digital infrastructure during 2006, by expanding bandwidth, installing a dedicated server room, adding new servers, and upgrading many critical work stations for faster order processing. "We initiated our Order Integrity Program last year, and customer response has been tremendous," continued Keeney. "On any given day, thousands of digital photo images are moving through our production line. The logistics of coordinating this flow from the arrival of a digital image over the Internet, to print processing, to the delivery of a finished product to the shipping line requires a combination of hand inspections and computer automation. Our upgrades made this process more efficient and significantly reduced the error rate. Order Integrity controls print quality and assures the shipment of precisely what the customer ordered."

"The Company's revenue growth exceeded plan in 2006, while losses were in line with management's expectations," observed Keeney. "Our new 'myCamera' advertising campaign was introduced during the year and after an extremely good response from the market was expanded in the fourth quarter. In the course of expanding our media buys we added magazines that we thought would reach our target audience but underperformed versus other media. Still, by year's end, our ability to target potential customers had improved significantly, as we canceled certain non-productive magazines and added other print and online media. The advertising now reaches about 1,000,000 photographers a month."

During 2006, the Company incurred non-recurring expenses related to its 'reverse merger' into the Hampden Group, along with legal and professional fees associated with the two above-described acquisitions.

"Looking back, we had a great year. We rolled out new software, new products, new internal systems, made a key acquisition, nearly doubled our plant capacity, completed our promised reverse merger and grew revenues. I am pleased with myPhotopipe.com's accomplishments and look forward to accelerating growth in the current year, the seeds of which are already sprouting. Earlier this month, we announced our receipt of a contract from the U.S. Department of Homeland Security, which I believe demonstrates that myPhotopipe.com has emerged as a major competitor in the professional digital space. With the right products, the right people, the right systems, and the best quality prints and customer service, we look forward to leveraging our brands to create value for our shareholders in 2007," concluded Keeney.

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 94 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/.

Contact: L. Douglas Keeney, CEO, at [phone] or via email [e-mail]

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

at [phone] or via email at [e-mail], Inc. (Unaudited) Comparative Balance Sheet 12/31/06 12/31/05 Assets Cash $ (130) $2,275 Accounts Receivable 159,211 7,853 Other Current Assets 28,675 7,817 Total Current Assets 187,756 17,945 Property, Plant & Equipment 1,962,715 1,447,663 Less Accumulated Depreciation (1,831,515) (1,443,095) Net Fixed Assets 131,201 4,568 Total Assets $318,956 $22,513 Liabilities and Equity Current Liabilities Accounts Payable $ 160,510 $ 113,283 Other Current Liabilities 353,518 116,023 Total Current Liabilities 514,028 229,306 Long-Term Liabilities 476,606 202,950 Total Liabilities 990,634 432,256 Shareholders' Equity (671,679) (409,743) Total Liabilities and Shareholders' Equity $ 318,955 $ 22,513 myPhotopipe.com, Inc. Comparative Income Statements (Unaudited) Years Ended December 31 2006 2005 Gross Revenue $1,001,176 $ 538,300 Cost of Goods Sold 727,302 305,026 Gross Profit 273,874 233,275 Overhead 280,064 193,185 Net Operating Income (Loss) $ (6,190) $ 40,090 Corporate Overhead Expense (Income) 735,698 (13,125) Net Income (Loss) $ (741,889) $ 53,215 Comparative Income Statements (Unaudited) Three Months Ended December 31 2006 2005 Gross Revenue $ 352,324 $ 134,603 Cost of Goods Sold 277,186 76,450 Gross Profit 75,138 58,152 Gross Profit Margin 21.3% 43.2% Overhead 97,994 41,114 Net Operating Income (Loss) $ (22,856) $ 17,038 Corporate Overhead Expense 463,243 110,479 Net Income (Loss) $ (486,099) $ (93,441)
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