SHUTTERFLY LAUNCHES NEW PICTURE SHARING SERVICE, COLLECTIONS

Personalized web pages give users special place to share photos and swap stories with friends and family

REDWOOD CITY, CALIF. - (July 28, 2005) — Shutterfly, the leading independent e-commerce company specializing in digital photo products and services, today announced the immediate availability of Shutterfly Collections™, a new service that lets customers create their own web address for picture sharing. Shutterfly Collections provides an easy-to-remember online location that helps families, social groups and organizations easily connect and communicate around shared memories.

Now, in addition to sharing a single album at a time, Shutterfly members can create up to two free Collections, each with a personal address (e.g. TheMartinFamily.shutterfly.com, BabyAva.shutterfly.com or AmyandDanielsWedding.shutterfly.com), where they can store and share an unlimited number of photo albums. Invited guests will receive an email invitation to view shared pictures and to access previous album postings. To ensure the privacy of Collections, users have the option of setting password protection for each personalized URL.

Collection “owners” can give invited guests permission to share their own photos and add comments to the Collection. Comments added, to both albums and individual photos, can be enjoyed by all via the Guestbook feature. Invited guests have the ability to order prints and view slideshows from any of the photo albums shared in the Collection. Additionally, Collection owners can subscribe to an optional, daily email notifying them of new contributions. Comments and pictures from the previous seven days are featured in a link on each Collections home page and are also marked with a “New” tag.

“Our customers tell us that sharing photos has become as much a part of their regular communication with family and friends as phone calls and emails. We listened to their requests for a more dynamic way to communicate using their pictures combining conversation and photo sharing in one easy-to-find place,” said Jeffrey Housenbold, CEO of Shutterfly. “Shutterfly Collections is the answer, giving customers their own Shutterfly web page to return to over time to re-live the special events and every day moments of their lives.”

In the coming months, the company will add a Group Address Book feature enabling Shutterfly members to create buddy lists and expedite picture sharing.

To learn more about Shutterfly Collections, please visit, www.shutterfly.com/learn/collections.jsp

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About Shutterfly
Founded in 1999, Shutterfly, Inc. (www.shutterfly.com ) is a premium photo service specializing in the consumer and professional photography markets. The company provides customers with simple and fun ways to organize, enhance and archive images; share pictures with family and friends; order professional-quality prints and create an assortment of personalized items such as Photo Books, Calendars and Greeting Cards. In 2005, Shutterfly ranked no. 170 on the 24th annual Inc. 500 list of the fastest-growing private companies in the country.

Shutterfly, Shutterfly Collections and Shutterfly.com are trademarks of Shutterfly, Inc.

Shutterfly, Shutterfly.com and Snapbook are trademarks of Shutterfly, Inc.