July 18th, 2001

Dear Members,

I am very pleased to announce some exciting changes at PhotoPoint.com.

Many people have expressed fears about the future of PhotoPoint.com in light of the many closures, layoffs, and changes that are occurring at other photo sites. The recent changes at PhotoPoint.com ensure a long and stable future for the site and your photos.

Until now, PhotoPoint.com has been owned and managed by PhotoPoint Corp (USA), but developed and maintained by Pantellic Software Inc. Pantellic was the original creator of the site, and back in 1999, sold the intellectual property of the site to PhotoPoint Corp.

Pantellic Software is proud to announce that on July 17th, we re-acquired the rights to the site, allowing us to continue to develop and maintain the site as we have been, but also letting us set the future direction, based upon our daily contact with the membership. You can view our press release at:
http://www.photopoint.com/aboutus/press/07-17-01.html

I would like to apologize for any uncertainty that our members may have experienced during the transition of ownership. Your photos, albums, and memberships were never at any risk of loss. The safety and integrity of our members' photos has always been, and will continue to be, our number one priority. We understand how important your photos are to you.

We want to assure our members that we will honour all existing paid memberships and trial accounts. In addition, in appreciation of your patience and loyalty during this period of uncertainty, we will be extending the term of existing paid memberships by two months.

In the future, we plan to make the site even better. We know the success of the site hinges on the satisfaction of you, the members of PhotoPoint. We will be counting on your comments and suggestions about our features and services to help us make the right changes and enhancements to the site. We would encourage members to send any constructive feedback or suggestions to suggestions@photopoint.com.

I apologize for our delays in communicating these events of the past week to you. As you can appreciate, the transition of ownership has been very hectic for us, and during private negotiations, one's ability to make public statements can be limited.

I want to personally thank you for your loyalty. All of us in the Pantellic Family look forward to continuing to make PhotoPoint.com the greatest and safest place in the world to store and share your photos.

Sincerely,

Dale Gass
CEO, Pantellic Software, Inc.