ORLANDO, FL – (February 20, 2005) — Today from the Photo Marketing Association (PMA) 2005 Annual Convention & Tradeshow, Panasonic Consumer Electronics Company announced an alliance with Shutterfly, a leading online photo sharing service provider, to provide an online photo center for consumers. Beginning in March, Panasonic customers can take full advantage of Shutterfly’s award-winning photo products and services at the Panasonic Photo Center, created and managed by Shutterfly. This reflects a broadening of the alliance between the companies, who both provide consumers with high-quality digital photography solutions.

“As digital camera sales rapidly outpace those of traditional film cameras, consumer demand for convenient and easy-to-use digital photography services will grow exponentially,” said Monica Helmer, Marketing Manager for the Optical Group, Panasonic Consumer Electronics Company. “Panasonic chose to work with Shutterfly because as a recognized leader in online photo services, the company shares our desire to provide the best overall digital photography experience for consumers.”

Panasonic Photo Center, Powered By Shutterfly
The following Shutterfly photo products and services will soon be available to Panasonic customers via the Panasonic Photo Center:

• Professional digital prints ranging in sizes from wallets to 20×30 large-formats
• Customizable photo cards, calendars, photo books and photo gifts, including mugs, t-shirts, and a variety of other personalized products, that can be shipped directly to friends and family all over the world
• Free online photo sharing service
• Free image editing tools (i.e. cropping, red-eye removal, enhancing color effects and adding borders)
• Free, unlimited online image storage

“Shutterfly is excited to help Panasonic Photo Center customers preserve their memories and stay connected with family and friends,” said Andy Young, Chief Marketing Officer of Shutterfly. “With our shared commitment to quality products and customer satisfaction, we look forward to a mutually-beneficial and productive alliance with Panasonic.”

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About Panasonic Consumer Electronics Company
Based in Secaucus, N.J., Panasonic Consumer Electronics Company is a Division of Panasonic Corporation of North America, the principal North American subsidiary of Matsushita Electric Industrial Co. Ltd. (NYSE: MC) and the hub of Panasonic’s U.S. marketing, sales, service and R&D operations. Information about Panasonic products is available at www.panasonic.com. Additional company information for journalists is available at www.panasonic.com/pressroom or through the company’s toll-free fax-back system at 888-734-7490.

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.
Media Contacts:
Will Safer
Panasonic
201-392-6124
saferw@us.panasonic.com
Bridgette Thomas
Shutterfly
(650) 610-3519