News Release For Immediate Release PNI Digital Media Announces Second Generation of PNI Connected Kiosk™ Software

Enables More Consumer Creativity, On-Kiosk Merchandising and Enhanced Analytics

Tools for Leading Photo Retailers

VANCOUVER, BC - January 31st, 2012 - PNI Digital Media (TSX: PN; OTCBB: PNDMF), ("PNI" or the "Company"), the leading innovator in online and in-store digital media solutions for retailers, announced an all- new update to its award-winning PNI Connected Kiosk™ software, enabling further consumer creativity, product merchandising and enhanced back office controls.

With PNI Connected Kiosk software, leading photo retailers can offer their consumers the ability to create, customize and order a wide range of photo gifts including photo prints, enlargements, photo books, photo calendars, greeting cards and more, right on a retailer's in-store photo kiosk. Consumers can use their own photos from their digital cameras, mobile phones, tablet devices and also from their Facebook® photo albums by logging in with Facebook directly from a PNI connected kiosk.
The new version of PNI Connected Kiosk enables retailers to drive results across their category. Highlights include: