myPhotopipe.com Inc. (Pink Sheets: MPPC)

Dear Reader,

At StockUpTicks our core objective is to find "Better Mousetrap" stories for our readers. And that’s often hard to do. We look for compelling ideas, market disruptive technologies, and a ready market. Today’s profile on myPhotopipe.com Inc. (Pink Sheets: MPPC) may well be all of the above.

One need look no further than their own home to realize the ubiquity of digital photography. The last time I bought film The Backstreet Boys were popular and the picture quality in frames around the editor’s pad are so much better now that I can delete the bad ones and keep the best.

Today’s featured company has innovation, momentum and traction from major companies, no small feat for a microcap. It also has the quality needed to capture the serious photographer which explains in part why leading national companies have chosen them as a digital photo developer.

The snapshot below will give you an idea why myPhotopipe.com Inc. could be the next big thing in the digital photography revolution.
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About myPhotopipe

myPhotopipe.com ("myPhotopipe""MPPC") is based in Atlanta, Georgia, and provides online photo processing services includeing: digital photo processing, photo finishing, online sharing, online hosting & selling of photographs, and online storage. Founded in 1989, myPhotopipe serves studios, colleges, sports photographers, teams, landscape photographers, television stations, commercial decorating firms, studio photographers, modeling agencies, clubs, wedding photographers and other professional photographers.

Four years ago, industry veteran Pete Casabonne and marketing veteran Douglas Keeney teamed up to transform a well-respected, old-line professional film lab into an online digital photo processor that would serve serious photographers nationwide. They scrapped the bulky film processing units and moved in sleek servers and racks. They tore out copper phone lines and substituted metroE and offsite collocation facilities. They built PhotoTRAC, a quality control system that precisely tracks and controls the movement of millions of images from the Internet through the lab and back to the customer. And MPPC prints 100% of its photographic prints and fine art prints in its national lab. MPPC never sends images to contract labs. Your print comes directly from the MPPC lab in Atlanta.

And MPPC has quite a customer base, which includes companies such as Coca-Cola, Lions Gate Entertainment, UPS and Rosetta Stone, as well as the Department of Homeland Security, the Dallas Cowboys, the New York Giants, the Dallas Mavericks, the Atlanta Falcons and many other high-profile organizations.

The myPhotopipe Web site has 12,000 new prospective customers
bookmark the Company’s web site each month. 

Nearly 3,500 visitors download the Company’s Remote Order Entry Software and between 400 and 600 new customers are added each month.

MPPC management estimates new customer acquisition costs of $26 with average revenues per first use of $41, suggesting the cost-effectiveness of these marketing tactics. The online version of Studio Photography magazine recently notified MPPC that its advertising was ranked #1 when measured by the number of clicks on their site. Nikon and Epson were ranked #2 and #3, respectively.  MPPC has also been favorably reviewed by numerous online photography sites, including Sharpshooter.com, Photography Bay, and the Online Photographer. 

No matter where DHS goes, a digital camera is there, a photograph is taken and with the click of a mouse that photograph can be uploaded to MPPC's lab and cued to be printed. In just a day or two MPPC can provide an incident team with a photo montage of their exercise or provide a local community with prints from photos taken during an on-site visit from the Secretary.

"We are thrilled, and at the same time honored, to help one of the largest branches of the United States government accomplish its mission," said Douglas Keeney, MPPC CEO. The Department of Homeland Security, which was created in 2002, has 180,000 employees and includes the following agencies, among others: Transportation Security Administration (TSA), U.S. Customs and Border Protection, U.S. Citizenship and Immigration Services, U.S. Immigration Customs Enforcement, U.S. Secret Service, Federal Emergency Management (FEMA), and the U.S. Coast Guard. MPPC's PRPrints was a Homeland Security product adapted for celebrities and professional sports franchises. It made the job of creating an 8×10 for, say, Eli Manning, much easier. Load the photo. Spell check the name. Adjust the crop. And print 2000 prints for Eli’s charity appearance. It was an immediate hit. 

Because photographers have different workflows, MPPC has have different ways to order prints. MPPC recommends ROES (Remote Order Entry System).  The MPPC ROES crop-and-preview tool lets you immediately see where crops fall on your photo -- and lets you adjust yours crops until your print is perfect. PhotoCentral is a quick HTML-based uploader with all of the popular snapshot sizes but it doesn’t have a cropping tool and it has none of our high end substrates like Pearl, rag or fine art papers.

The Photo Finishing Market

This is an extremely attractive market niche; according to a recent Infotrends study, the average professional photographer spends approximately $589 per month on print processing and purchases nearly 50% of his prints from an online print provider such as MPPC.

The photo processing industry has undergone dramatic transformation. In less than ten years, digital images have all but replaced film imaging. MPPC is a market leader in digital imaging and is benefiting from growth rates in this market exceeding 40% annually.

MPPC also benefits from a shift in industry delivery channels away from kiosks and home printing in favor of online ordering and pick-up or mail delivery. Unlike competitors such as Snapfish and Shutterfly who have invested considerable resources in retail models, myPhotopipe.com focuses entirely on online ordering with mail delivery.

Online ordering of prints from digital cameras grew 114% in the 12 months ending January 2007 and far exceeded every other sales channel. Over the past three years, this channel has delivered consistent and triple-digit growth. Growth in market share has exceeded 110% whereas photo kiosk share has only grown 10% and home processing share has actually declined. 

Industry sources estimate there were approximately 58 million US households with both Internet connectivity and a digital camera at year-end 2007.
The number of prints processed through online ordering grew 162% year-over-year in the 12 months ending January 2005, 130% year-over-year in the 12 months ending January 2006 and 114% year-over-year in the 12 months ending January 2007. 

myPhotopipe Products

The MPPC all-new, FolioPrints let you personalize every photo you take by using our exclusive Embedded Digital Effects (SM). Activate a caption box. Add a border. Turn your photo into an extraordinary print. It’s that easy. It costs no more. And it’s only at 'the pipe.' Ordinary edge-to-edge prints look great but still need additional matte work in order to create a final high-quality presentation. Your print template is now full of embedded digital options. Activate text, change border colors--make a print that's ready to frame.

Edge borders, faux mattes and hairline effects have all been cleanly designed to turn you photo into a masterpiece. Personalized. Activate the embedded caption box and add a caption, or not. It’s up to you.

FolioPrints include the matte (or hairline border) in the print so your photos look elegant without any additional work. Embedded Digital Effects give you borders, captions, faux mattes, and colors but you pay no more. Activate one. Activate them all. Printed on Fuji Crystal Archive papers or Fine Art PhotoRag.

During 2007, MPPC launched PRPrintPro, an advanced applet and digital photo toolset. PRPrintPro dramatically reduces the time needed to create, personalize and order photographic prints that can then be autographed by celebrities, professional athletes and dignitaries. It combines six functions into a single Java applet - design service, text editor, digital photo editor, online ordering of digital photo prints, storage, and re-ordering - all within a password-protected folder. 

The applet service allows users to create, edit, crop, order and retain for reorder personalized photographic prints all in a span of a few minutes. MPPC  recently hired a dedicated salesperson to market the PRPrintPRo toolset. Management believes sales related to this product could easily exceed $1.0 million over the next 12 to 18 months. 

PRPrintPro also enhances MPPC's ability to market its services to professional sports teams. The value of any one sports team contract can easily exceed $60,000 annually and MPPC is already providing services to several NBA, NFL and MLB teams. MPPC management also intends to pursue photo processing contracts with NASCAR, professional wrestling and with government-sponsored performance teams such as the Blue Angels.

Certainly digital photography is the way of the future for many photographers, but much like the difference between CD's and LPs, we realize that there are many myPhotopipe Pros who believe in the superior quality of shooting on film. That's why we feel it's important to provide our superior output and scanning options to film photographers as well.

Ready to be hung.

Out of the box and on the walls.
Hand assembled. Sealed in the back.

When you venture down to rural Macon, Georgia, you’ll find the ultra-modern framing factory of Michael Paul Designs. Introducing our exclusive line of Michael Paul Designs’ Gallery Wrapped prints, one of the finest gallery wrapped products in the nation. Upload your photo, select your print size and we’ll output your image using our state-of-the-art 9800 on our supple, museum-quality canvas. We’ll hand inspect your print then turn it over to the professionals at Michael Paul who stretch it and wrap it around their hand-cut pine frames. All four corners are glued and v-nailed to create a bond that few can match. 

What is a Gallery Wrap?
A Gallery Wrap takes a canvas print and stretches it around the sides of a frame and staples it on the back where the staples can’t be seen. A Gallery Wrap is ready to be hung on the wall. (A Museum Wrap staples the canvas on the side because the frame will sit inside a larger frame.) 

How do you crop your print?
When we stretch your print around the frame, some image area will necessarily be lost so make sure nothing important wraps around the side. To make sure, use our cropping tool in ROES. All of our gallery wrapped prints can be ordered through ROES and with each you may accurately preview your crops.

What’s included?
Our prices include printing your photograph on our soft-to-the-touch PremierArt water resistant canvas, the frame, professional stretching and mounting, and professional packing and shipping to your home or office.

• Sequence shots for athletes 
• Time lapse photography showing construction projects 
• Beautiful portraits for children, families, husband and wives. 
• Business timelines 
• Weddings, trips abroad, graduations, favorite pets 
• Histories – families, business, American 
• Decorative wall art with flowers, landscapes, golf courses
• Your favorite car, motorcycle, airplane, boat 

Mounting

Mounting is an excellent finishing option if you intend to frame your print or simply put it on display, however, not all materials are the same. Because of its superior resistance to warping, its rigidity, and for its excellent load bearing characteristics, we mount exclusively on Gatorboard®. Gatorboard is the original graphic artists foam board. It consists of a rigid polystyrene core of foam laminated between two faces of Luxcell®, a resin-impregnated wood fiber. It is an excellent choice for professionals. MPPC offers two sizes -- 3/16” and ½” both in black.

High quality glossy prints with a distinctive pearl-like appearance, making it ideal for professional applications such as commercial, fashion and portrait photography. Embedded pearl-like crystals produce a high gloss reflectance, particularly in highlights, to enhance the warmth and depth of printed images. 
Lustrous, rich textural quality of PEARL Paper gives you vibrant color reproduction across a wide tonal range, with sharp text quality and high color saturation to deliver stunning prints that capture viewer attention. Ideal for professional applications such as commercial, fashion, wedding and portrait photography. PEARL Paper features a thick base and high stiffness to enhance durability 

That’s why we offer you hundreds of print sizes, templates, and paper substrates. That’s why we are meticulous about color management. That’s why we are the lab of choice for 12,000+ studios, professionals, colleges, professional sports franchises, and associations; portrait, wedding, sports, and news photographers; movie studios, corporations, TV stations, newspapers, advertising agencies; and hobbyist, and enthusiasts nationwide.

We put 26 years of experience, and millions of prints processed, behind every print we make. But there’s more. We’re a professional lab. That means we use the high-end Noritsu and Chromira printers. That means we hand inspect every photo we print. And that means that we calibrate our machines every time we change-out the rolls of Fuji Crystal Archive papers, a process you wouldn’t find in retail labs. Our job is to give you beautiful film quality prints, hundreds of print options, all with the ease of online ordering and the convenience of home delivery, nationwide.

If you want an 11X14, size your image to 11X14. Be exact and test it before you send it. If the image is a little too small or a little too big, we automatically enlarge or reduce it to fill the paper and however minute, that changes your photograph. If you’re exact, you will get exactly what you want.

Automatic Center Crop

Unless otherwise specified, this is the industry’s standard cropping methodology. Center Crop is applied to all prints unless you specify otherwise. In this mode, we enlarge or reduce your image until it fills the print, automatically center it, and then crop off the edges.

Let’s say you have a group portrait with people stretching from one side of your photo to the other. If you don’t want us to crop out Uncle Harry, and you haven’t sized it exactly, this is your choice. Our software fits the longest dimension of your photo to the paper you’ve selected and lets the other dimension float. You will receive a print with a white border somewhere (top or bottom) but you won’t lose any of your image.

Print to fit solves the math of enlargements by fitting the longest side of your photograph to the print size you ordered and leaving the extra space on the other dimension white. In the photograph to the right, the longest dimension is the horizontal dimension so we print-to-fit the left-right and leave the bands of white on the top and bottom. A standard enlargement destroys the power of this picture by cutting off the swimmers’hand.

Professional finishes.
You have a choice of three finishes – matte, for bright, smudge free prints, glossy, for classic luster and brilliance and pearl for that lustrous pearl-like appearance.

Professional color management.
We recognize your color settings (color tags) and hold them through the entire print process.

Recent News from MPPC

Press Release Source: myPhotopipe.com, Inc. 
Tuesday March 25, 8:30 am ET 

ATLANTA, March 25 /PRNewswire-FirstCall/ -- myPhotopipe.com, Inc. (Pink Sheets: MPPC.PK - News), a web-based online provider of digital photo processing and related services, today announced that the Department of Homeland Security (DHS) has exercised its option to extend its contract with the Company. myPhotopipe remains the exclusive provider of photographic prints to the DHS.

"A year ago, this was a hard fought contract with many bidders," said Pete Casabonne, President of myPhotopipe.com, Inc. "Since winning the account, we've processed images from all over the world. It is deeply gratifying that Homeland Security feels confident in our abilities and our quality, and has elected to exercise its renewal option." MORE 
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ATLANTA, Jan. 25 /PRNewswire-FirstCall/ -- myPhotopipe.com, Inc. (OTC Pink Sheets: MPPC - News), a web-based online provider of digital photo processing and related services, today announced the national availability of its new FolioPrints(TM) photographic prints. FolioPrints are silver halide prints produced on Fuji Crystal Archive paper. They contain a digitally embedded border and a digitally activated caption box. FolioPrints may be ordered in 304 print sizes and finishes at www.myphotopipe.com. MORE
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Leadership at myPhotopipe.com

L. Douglas Keeney, CEO has been the Chairman and CEO of myPhotopipe.com, Inc. since January 2005. He is a seasoned entrepreneur, a trained corporate executive, and the author, coauthor or ghost author of 11 published books including two on management.  From 2000 to 2003, Mr. Keeney was the CEO of US Wireless Online, an Atlanta-based broadband provider, and from 1991 to 2000, the founder and CEO of Avion Park, a provider of programming to The History Channel, A&E, Time-Life and others. From 1976 to 1987, Mr. Keeney worked in marketing and advertising in Los Angeles and New York with Young & Rubicam, Benton & Bowles, and Ogilvy & Mather, and internationally with Brown & Williamson Tobacco Company. He was nominated to and attended the Institute for Advanced Advertising Studies (NYC) and is on the advisory board of Afterburner, Inc., an INC 500 management training company based in Atlanta, Georgia.

Mr. Keeney has a BA in Economics from the University of Southern California and an MBA from the University of Southern California’s Marshall School of Business. He is a pilot, an avid scuba diver and the former Chairman of the License Exempt Alliance of the Wireless Communication Association. Mr. Keeney’s books have been published by Viking Penguin Putnam, Wm. Morrow, HarperCollins, and Simon & Schuster. They have been reviewed by Newsweek, salon.com, The New York Times and other publications. 

Peter Casabonne, President and COO, has been in the photo processing industry for 26 years and has served more than 100,000 customers and processed many millions of prints. Mr. Casabonne is a well-known creative director in the professional processing space. His career spans the transitions from film to slides to digital. Mr. Casabonne oversees the lab, including the photo retouching stations and the interface between the Internet and the Company’s automated print processing machines.
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Financial Highlights for myPhotopipe

In the first nine months of 2007, MPPC generated revenues of $997,972 and gross profits of $721,942, resulting in 72.3% gross margins.  Revenues grew 63% year-over-year and gross profits expanded 69% year-over-year. Total nine month 2007 operating expenses were $759,610, or approximately 76% of revenues. 

To Contact myPhotopipe.com

         L. Douglas Keeney, CEO, at (502) 419-5837 or via email at dougk@myphotopipe.com

    R. Jerry Falkner, CFA, RJ Falkner & Company, Inc., Investor Relations
         Counsel at (830) 693-4400 or via email at info@rjfalkner.com

Corporate Offices
myPhotopipe.com, Inc.
1670 Northeast Expressway, Atlanta, GA 30329
Toll Free: 1-800-838-3146

Web Site: http://www.myphotopipe.com

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