SHUTTERFLY EXTENDS ITS REACH TO THE DESKTOP WITH THE LAUNCH OF SHUTTERFLY STUDIO

New Photo Software Lets Customers Organize, Enhance, Share and Print Directly From the Desktop

REDWOOD CITY, CALIF. - (May 10, 2006) — Today Shutterfly, Inc., the leading independent online photo service, introduced Shutterfly Studio™ software, a new photo-organizing application that provides consumers with everything they need to manage their growing collection of digital images. Shutterfly Studio helps consumers view, organize and edit their pictures while providing access to Shutterfly’s award-winning products and services. Shutterfly customers can share pictures and order prints from their desktop using Shutterfly Studio, without having to upload images to the Shutterfly website first. The free software download is now available to Windows users at www.shutterfly.com/studio

Once downloaded, Shutterfly Studio immediately searches and thumbnails all of the digital images stored on the computer. Users then have instant access to Shutterfly Studio’s comprehensive photo management and editing tools, as well as a selection of viewing options including a full screen slideshow. Since it is designed for close integration with Shutterfly.com, Shutterfly Studio includes offline options for sharing and ordering photos. Furthermore, Shutterfly Studio performs operations simultaneously so users never have to wait for a task to complete before starting a new one; for example, users can upload new photos while editing others.

“Our customers consistently tell us that archiving their digital images and finding the right pictures when they need them can be a major source of anxiety,” said Jeffrey Housenbold, CEO of Shutterfly. “With the introduction of Shutterfly Studio, we’re excited to offer a comprehensive solution to our customers – a powerful photo-organizing application that alleviates customers’ frustrations and also provides an onramp to our website, where they’ve come to expect a great experience.”

When Shutterfly asked its Shutterfly Studio beta customers about the challenges of managing their ever growing picture collections, self-proclaimed “family memory keepers” (71 percent women; 29 percent men) wanted more convenient ways to get their pictures off their cameras, organize, edit and share them with the help of easy-to-use software. Shutterfly Studio addresses this need and adds the ability for offline printing and sharing, so customers can send and print their photos without uploading them first. Shutterfly Studio also supports digital cameras that let customers shoot short video clips by adding the ability to manage, organize and view these clips together with pictures in one convenient location.

Organize & Find Photos – Personal Choice
Shutterfly Studio is capable of managing very large amounts of pictures and has been regularly beta tested on collections of fifty-thousand images. Unlike ordinary photo-organizing software, Shutterfly Studio lets users view their photos in whichever way they find most convenient: by folders (mirroring the existing structure on their desktop), by date taken (presented in a calendar view) or by keywords. Users can easily use these views to find exactly what they need, when they want it. Additionally, Shutterfly Studio users can rate their pictures and find favorites using a five-star system or a text-based search.

Edit Photos – Simple & Clean Features
Shutterfly Studio’s intuitive editing interface provides quick access to the most frequently used editing tools including crop, auto fix, brighten, sharpen, red-eye and “pet-eye”. When viewing pictures, Shutterfly Studio users can “zoom in” to ensure editing accuracy; and once an enhancement is applied, users can scroll between “before” and “after” split screens to preview and accept changes. Consumers can also conduct batch edits; for example “auto fixing” all pictures in a folder at one time. If photos are well balanced, Shutterfly Studio will not impose unnecessary changes. To prevent unwanted edits, users can “undo” an action with one click; and Shutterfly Studio keeps a copy of each picture, so consumers can always revert to the original image.

Comprehensive Options for Mac
For Mac enthusiasts, Shutterfly offers an export assistant for Apple’s iPhoto software to help users upload photos directly to their Shutterfly account from within the iPhoto software. Alternatively, they can upload directly from any of the key Mac browsers while using the Shutterfly site.

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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.