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After expanding its core book business into music, Steimatzky is aiming at the photography business, recently establishing a new digital division. Under an agreement recently signed between the major book retailer and the TzamTzam chain of photography services, equipment and supplies, Steimatzky will be installing workstations at its outlets for instant production of custom-designed photo albums, at an investment of NIS 6 million. Eight workstations have already been installed in Steimatzky outlets, and will be in all 150 of Steimatzky's bookstores within a year.

Steimatzky chief executive Iris Barel is aiming to transform the chain into a leader in the development of the Internet and cellular photography market. "Not only are there currently no large photography chains in Israel, half of the photography shops have closed down in recently years," Barel said.