SHUTTERFLY RELAUNCHES THE COMPANY’S ONLINE STORE

Store Reopens with New Design, More Products and Enhanced Shopping Experience for Loyal Customers and First-Time Shoppers

BURLINGAME, CALIF. - (September 28, 2005) — Today from the InfoTrends/CAP Ventures’ Digital Imaging Conference, Shutterfly announced the relaunch of the company’s online Store (www.shutterfly.com/store). Consumers now can browse the company’s expanded selection of premium photo products and create photo gifts without registering with the Shutterfly service. Additionally, Shutterfly products are arranged and displayed intuitively, so that shoppers can quickly find and purchase a thoughtful gift or treasured keepsake.

“Shutterfly is consistently improving its service to offer both the highest quality and most intuitive user experience for its customers,” said Jill Aldort, Senior Consultant, Internet Imaging Trends for InfoTrends/CAP Ventures. “By adding hundreds of new photo-related products to the Shutterfly Store and eliminating the need to sign in before viewing the product selection and designing the product, Shutterfly invites all shoppers to visualize their personalized product before they buy, which is a great differentiator.”

The new Store includes Shutterfly’s award-winning design-it-yourself products such as Photo Books, Greeting Cards, Calendars and PhotoShow DVDs along with new photo-related products and gift items that reflect the many ways photos enrich our lives. New albums, frames and pre-made scrapbooks in a variety of colors and styles will fulfill every shopper’s desire for the perfect way to display and share their photos. Just in time for the holidays, Shutterfly gives visitors options to shop according to gift-giving occasion, product category or “top sellers” enabling them to easily locate their favorite items along with product details, suggested uses and customer testimonials.

“At Shutterfly we put a premium on quality, whether it’s our products or the customer experience, and we’ve redesigned the Shutterfly Store to reflect this principle,” said Jeffrey Housenbold, CEO of Shutterfly. “Through a complete update of our site architecture, a new look and professional merchandising, we have created an online store that combines the convenience of one-stop shopping with the highest quality Shutterfly customers have come to expect.”

New Albums, Frames and More
Each product offered in the new Shutterfly Store had been hand selected for its tremendous attention to detail and suitability for displaying photos and preserving memories. Items include:

• Kolo albums, which help Shutterfly customers transform the way photos are presented, stored and enjoyed. From brag-books to elegant leather albums, Kolo presents modern yet timeless designs. Shutterfly will offer more than 30 Kolo albums ranging from $18.00 to $180.00, as well as Kolo photo storage boxes for $28.00.
• Molly West hand-bound photo albums, which are made by expert book binders and crafted with fine materials such as silk and suede into heirloom-quality pieces. Shutterfly will offer more than 20 Molly West albums in baby, wedding and all-occasion themes from $42.50 to $162.50.
• Award-winning baby board books from Playhouse Publishing, which let parents insert child’s photos into each page to create a custom story. Just add pictures and “wow” even the toughest little story-time critic. Shutterfly will offer such titles as My Grandma and Me, Peek-A-Boo Farm, and Picture Me One starting at $10.00.
• Burnes of Boston, which has set the standard for classic picture frames. Shutterfly will offer more than 40 Burnes of Boston designs, from large wall frames to smaller, more novel styles, ranging in price from $5.99 to $49.99.

For more information, please visit: www.shutterfly.com/store

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