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PNI Digital Media Renews Contract with Costco Wholesale Canada Online Photo Centre


June 9, 2011 - VANCOUVER, BRITISH COLUMBIA

PNI Digital Media (TSX VENTURE: PN)(OTCBB: PNDMF) ("PNI" or the "Company"), the leading innovator in online and in-store digital media solutions for retailers, announced that the Company has extended the terms of its Internet Services Agreement with Costco Wholesale Canada Ltd. ("Costco Canada") to provide and operate the Costco Canada online photo service which is connected to 81 Costco warehouse locations across Canada for an additional five year period up to June, 2016. The service will continue to allow Costco Members to easily upload and place orders for photo prints, greeting cards, calendars, photo books, posters, and other photo gift items on the Costco Canada Photo Centre website, with the ability to pick up their photo prints at the selected Costco warehouse location. PNI Digital Media also provides online photo services for Costco in the United States and Australia.

About PNI Digital Media- Founded in 1995, PNI Digital Media operates the PNI Digital Media Platform, which provides transaction processing and order routing services for major retailers. The PNI Digital Media Platform connects consumer-ordered digital content, whether from online, in-store kiosks, desktop software or mobile phones, with retailers that have on-demand manufacturing capabilities for the production of personalized products such as photos, photo books and photo calendars, business cards and stationery. PNI Digital Media successfully generates millions of transactions each year for retailers and their thousands of locations worldwide.

Further information on our company can be found at www.pnimedia.com.

The statements that are not historical facts contained in this release are forward-looking statements that involve risks and uncertainties. PNI Digital Media's actual results could differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, changes in technology, employee retention, inability to deliver on contracts, failure of customers to continue marketing the online solution, competition, general economic conditions, foreign exchange and other risks detailed in the Company's annual report and other filings. Additional information related to the Company can be found on SEDAR at www.sedar.com and on the SEC'S website at www.sec.gov/edgar.shtml. The information contained herein is subject to change without notice. PNI Digital Media shall not be liable for technical or editorial errors or omissions contained herein.

PNI Digital Media relies upon litigation protection for "forward-looking" statements.

The TSX Venture Exchange has neither approved nor disapproved the information contained in this release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts:
PNI Digital Media
Simon Cairns
Investor Relations and Press Contact
866-544-4881
ir@pnimedia.com
www.pnimedia.com

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