REDWOOD CITY, CALIF. – (September 19, 2005) — Shutterfly, the leading independent e-commerce company specializing in digital photo products and services, today announced a new partnership with TV and web retailing giant HSN. Shutterfly products and services will be bundled with digital camera and scrapbook supply purchases made through HSN’s TV shopping programs and through the hsn.com website.

“HSN’s selling environment provides Shutterfly with a one-of-a-kind opportunity to demonstrate the many thoughtful and creative ways HSN’s audience can use their digital camera photographs to stay connected with family and friends,” said Doug Galen, SVP of Corporate & Business Development for Shutterfly.

The Shutterfly promotions are highlighted on HSN during most camera and scrapbook sales presentations and online via hsn.com. Shutterfly product promotions for HSN shoppers will include free 4×6 and 5×7 prints, photo calendars and other personalized products designed to help consumers turn their valuable memories into distinctive photographs and gifts.

“HSN is always looking for exciting new ways to inform and add value to our millions of viewers,” said Michael Rudich, Director of Strategic Alliances for HSN. “You can buy a camera anywhere, but only HSN can show you how to use one and turn you on to how to make, order and store your photos online with a fantastic service like Shutterfly. Shutterfly’s impressive array of digital products and services provides tremendous value to our customers and demonstrates just one more way we constantly strive to meet and exceed our customers’ high expectations.”

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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.

About HSN
HSN, an operating business of IAC/InterActiveCorp (Nasdaq: IACI), originated the electronic retailing concept in 1977 and has since evolved into a global multichannel retailing giant, offering thousands of unique products in fashion, beauty, home, jewelry and electronics. Customers who shop on HSN can find name brands such as Sony, Kodak, Gateway Computers and Wolfgang Puck Bistro cookware, as well as fashions from Nicole Miller, Nine West and Etienne Aigner. HSN’s product offerings can be found across a number of retailing platforms ranging from TV, where HSN reaches 87 million U.S. households and is now the 4th largest cable television network in the U.S.; the Internet, through its easy-to-use Web site, www.hsn.com; and catalogs, with its Cornerstone Brands portfolio of titles including Ballard Designs, Frontgate, Garnet Hill, Improvements, Smith and Noble, The Territory Ahead and Travelsmith. In 2004, HSN generated worldwide consolidated sales of $2.4 billion, answered 66 million calls and delivered 50 million packages worldwide.
Media Contacts:
Bridgette Thomas
Shutterfly
(650) 610-3519