Press Releases Sep 05, 2000

BEST BUY DIGITAL PHOTO CENTER TO BE POWERED BY HP CARTOGRA WITH QUALITY PRINTS BY SHUTTERFLY

MINNEAPOLIS, Minn., PALO ALTO and REDWOOD CITY, Calif. (September 5, 2000) — Best Buy Co., Inc. (NYSE: BBY) and Hewlett-Packard Company (NYSE: HWP) today announced an alliance to co-develop and maintain Best Buy’s online photo center. Powered by HP Cartogra Internet imaging solutions, the photo center will offer customers a convenient alternative to traditional photo finishing. Customers will be able to access the photo center online at www.BestBuy.com or through in-store Web stations at Best Buy’s more than 350 retail locations nationwide.

As part of this alliance, Shutterfly, a printing and delivery service for online photos, will provide printing services enabling Best Buy customers to order 35mm-quality prints and other print-related products, and have them mailed directly to themselves, friends or family.

“Best Buy has established a commanding market share lead in digital cameras and, according to analysts Salomon Smith Barney, the total digital photo finishing market will be a $3.5 billion dollar industry by 2005,” said David Morrish, senior vice president of Merchandising-Computers, Best Buy. “Our alliance with HP to create a digital photo center adds customer convenience in digital photo processing.”

Best Buy’s online photo center is part of a continuing effort to enhance customers’ shopping experiences both online and in-store. “The online photo center is part of BestBuy.com’s initiative to provide new and innovative digital services to our customers,” said Scott Bauhofer, senior vice president and general manager — Online Stores for BestBuy.com™. “It is key to our continuing goal of pioneering the clicks-and-mortar revolution by creating a better shopping experience for our customers at every point we interact with them. We are excited to be at the forefront of this new digital service.”

HP Cartogra Internet imaging solutions will provide customers using Best Buy’s photo center with an easy way to manipulate, share and print digital images captured by a digital camera, scanner or 35mm film that has been digitized. Customers will be able to upload and store their images on the photo center and use the in-store Web stations to preview, enhance and enlarge, or discard unwanted photos before printing.

“As a worldwide leader in digital imaging, HP offers consumers a complete solution, including everything from PCs and printers to digital cameras, scanners and online photo-sharing capabilities,” said Dan Gilbert, general manager for HP’s Digital Imaging Solutions. “Through this alliance, we are able to offer Best Buy customers a rich, photo-sharing solution and further enhance their digital imaging experience.”

Using high-quality printing services from Shutterfly, Best Buy’s photo center will offer customers the benefit of digital photography. Customers will have the convenience of ordering only the prints they want, in a variety of sizes, and having these photos mailed directly to the destinations of their choice.

“Ensuring that customers receive the highest quality prints from their digital images is our top priority,” said Jayne Spiegelman, chief executive officer and co-founder of Shutterfly. “We are thrilled to be able to deliver our 35mm-quality prints to Best Buy customers through the mail. We have been offering our digital print fulfillment for Best Buy customers for the last seven months and we look forward to growing our relationship with HP and Best Buy, ensuring continued benefits to the consumer.”

About HP Cartogra Internet Imaging Solutions
HP develops strategic alliances with online businesses interested in offering consumers a rich, photo-sharing experience using HP Cartogra Internet imaging solutions. HP Cartogra includes a core infrastructure and a broad set of services including the ability to share, edit, organize, store and print photos online. The HP photo-sharing web site, www.Cartogra.com, is an Internet service that allows consumers to easily share photos with family and friends, and safely store and organize photos online at no charge. More information about HP Cartogra Internet imaging solutions is available by contacting Ramon Garrido at ramon_garrido@hp.com.

About HP
Hewlett-Packard Company — a leading global provider of computing and imaging solutions and services — is focused on making technology and its benefits accessible to individuals and businesses through simple appliances, useful e?services and an Internet infrastructure that’s always on.

HP has 86,000 employees worldwide and had total revenue from continuing operations of $42.4 billion in its 1999 fiscal year. Information about HP and its products can be found on the World Wide Web at http://www.hp.com.

About Shutterfly’s Printing Service
Shutterfly uses VividPics® technology to ensure that all photos are enhanced for color and clarity. Shutterfly guarantees that all photos will be printed within 24 hours at its new state-of-the-art, fully-automated facility. Customers have the option of ordering pictures of all sizes, and with Shutterfly’s “one-click, send to many” ordering and new international shipping, Best Buy Photo center customers have the opportunity to mail their photos to friends and family around the globe with a simple click of the mouse.

About Shutterfly
Shutterfly is a new kind of photo service that makes it simple, convenient and fun for people to take and share pictures. With only the Internet and a camera, Shutterfly users can easily enhance, personalize, store and share photos. Most importantly, they can transform their digital pictures into 35mm-quality prints and have them mailed to friends and family, all over the world. PC Magazine recently selected Shutterfly as the best online photo service, granting Shutterfly its coveted Editors’ Choice Award and rating the service “Excellent” with a five-dot rating — the highest rating available. Shutterfly services are available at www.shutterfly.com and through partners including Yahoo!, Adobe and PhotoPoint. The privately held company is headquartered in Redwood Shores, California and is backed by Jim Clark, Mohr Davidow Ventures, Adobe Ventures and Tom Jermoluk. For more information about the company, visit www.shutterfly.com.

About Best Buy
Minneapolis-based Best Buy Co., Inc. (NYSE: BBY) is the nation’s number one specialty retailer of consumer electronics, personal computers, entertainment software and appliances. The company reaches consumers nationwide through its more than 350 retail stores located in 40 states and online at www.BestBuy.com.

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Shutterfly, Shutterfly.com, the Shutterfly logo and VividPics are trademarks of Shutterfly, Inc. All other trademarks and product names are the property of their respective owners.