Photo booth operator Photo-Me International yesterday revived its relationship with the Post Office with a five-year deal to supply branches with digital printing facilities.
The Bookham, Surrey-based company will place 400 photo booths and self service camera printing kiosks in directly managed Post Office sites from this spring.
The deal comes after PMI lost its contract with the Post Office to rival Snap Digital Imaging in 2000.
The contract is expected to generate annual revenues of £5 million for PMI - solely from the photo booth operation as it is too early to fore-cast sales from the camera printing service.
It works by customers inserting their digital camera's memory card into the machine or by using infrared or Bluetooth technology. PMI has 33,000 sites worldwide, including 5,600 photo booths in the UK and Ireland.
Last month around £150 million was wiped from its value after a warning that it would miss profits hopes.
Shares crashed 30 per cent as Photo-Me blamed delays in the recovery in its minilab manufacturing business.
The company said pretax profits for the year to April 30 were likely to fall "well below market expectations".