Press Releases Feb 28, 2003

SHUTTERFLY ANNOUNCES NEW CEO

REDWOOD CITY, CALIF. – (February 28, 2003) — Shutterfly, the leading online photo service, today announced the appointment of Dave Bagshaw as the company’s new Chief Executive Officer, effective immediately. Bagshaw replaces Andy Wood, who will be assuming the CEO post at a global tracking and data communication services company.

Bagshaw has a thorough understanding of Shutterfly, having served as interim CEO of the company for a brief period in 2001. He is a technology industry veteran, having spent ten years in product management and marketing at Silicon Graphics. He also served as Senior Vice President and General Manger of @Home Networks media division and as Senior Vice President Customer Care at Excite@Home.

Jim Clark, chairman of Shutterfly and founder of Netscape Communications and Silicon Graphics, said, “Andy Wood led Shutterfly from a struggling start-up into the photo industry powerhouse that it is today. Now we are fortunate to have Dave at the helm. His marketing strengths are well suited to see the company through a new phase in its development. I have worked closely with Dave over the years and have the utmost confidence in his ability.”

“Shutterfly’s unparalleled brand of personalized service has made it the most successful online photo service today,” said Bagshaw. “I am excited by the challenge of building on the company’s tremendous momentum and bringing Shutterfly’s offerings to more and more digital camera converts.”

Shutterfly achieved cash profitability in the fourth quarter of 2002 with revenues for the year of more than 16 million, a 116 percent gain over the previous year.

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About Shutterfly
Shutterfly, the leading online photo service, leverages its proprietary technology and understanding of its customers to develop personalized, quality photo products and services that make it simple and fun for people to stay connected to those who matter most. Film and digital photographers alike can enjoy the benefits of Shutterfly’s photo services, including high-quality prints, image enhancements, personalization, free online storage and picture sharing. Customers can custom back-print and transform their pictures with special effects and borders as well as create photo cards, invitations, calendars, note cards, and Snapbooks™, all of which can be mailed anywhere in the world. Shutterfly is consistently recognized for its photo quality and innovative features, and was most recently rated best overall online photo service in a field of twelve by MacWorld in its June 2002 issue. Shutterfly is based in Redwood City, CA. For more information, visit www.shutterfly.com.

Media Contacts:
Donel Young
732-295-2406